{"id":320,"date":"2021-04-19T04:00:00","date_gmt":"2021-04-19T10:00:00","guid":{"rendered":"https:\/\/www.safechoicemn.com\/blog\/?p=320"},"modified":"2021-02-28T17:36:16","modified_gmt":"2021-02-28T23:36:16","slug":"the-basics-of-life-insurance","status":"publish","type":"post","link":"https:\/\/www.safechoicemn.com\/blog\/the-basics-of-life-insurance\/","title":{"rendered":"The Basics of Life Insurance"},"content":{"rendered":"<h1>The Basics of Life Insurance<\/h1>\n<p>A life insurance policy provides a contractual agreement between the insurance company and the policyholder that provides a lump sum payment to the beneficiary of the policy when the policyholder dies as long as the policyholder pays the premiums in a timely manner.&nbsp;<\/p>\n<p>Safechoice Insurance Agency serving Rochester MN wants you to understand that not all life insurance works the same. You can find two main types of life insurance. These include:<\/p>\n<ul>\n<li><strong>Term<\/strong>&nbsp;life: a policy that remains in force for a specific number of years.<\/li>\n<li><strong>Permanent<\/strong>&nbsp;life: a policy that remains in force as long as the insured pays the premiums, surrenders the policy, or dies.<\/li>\n<\/ul>\n<p>Within those two main types, you will find much variety.&nbsp;<strong>Term policies<\/strong>&nbsp;may charge premiums at a level term. That means the premiums remain the same annually or at an increasing term which charges lower premiums at a younger age, but which increase as the individual ages.<\/p>\n<p><strong>Permanent<\/strong>&nbsp;policies provide a much wider diversity. A single premium policy charges only one up-front premium, a balloon payment that funds the policy for life. A whole policy can accumulate cash value, while a universal life policy amasses an interest-earning cash value that charges premiums similar to term life insurance. It allows the death benefit and premiums to get adjusted over time. A variable universal policy amasses a cash value that the policyholder can choose to invest. An indexed universal policy lets the policyholder amass a cash value account and earn interest or invest the money according to an equity-indexed rate of return or a fixed rate.<\/p>\n<p>Some perm policies do not amass cash value. The guaranteed universal policy type does not and charges lower premiums than a whole life policy. A person with a pre-existing medical condition can obtain a guaranteed issue policy to provide a death benefit to their beneficiary. In the first two years of issuance, the policy only pays for accidental death. After that period, death from any cause except self-infliction receives coverage. A burial or final expense policy provides a small death benefit, typically enough to cover a funeral or cremation.<\/p>\n<p>Contact&nbsp;Safechoice Insurance Agency serving Rochester, MN to learn more about life insurance and determine which policy works best for you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Basics of Life Insurance A life insurance policy provides a contractual agreement between the insurance company and the policyholder that provides a lump sum payment to the beneficiary of the policy when the policyholder dies as long as the policyholder pays the premiums in a timely manner.&nbsp; Safechoice Insurance Agency serving Rochester MN wants [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[31,30],"class_list":["post-320","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-rochester-mn","tag-safechoice-insurance-agency"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/posts\/320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/comments?post=320"}],"version-history":[{"count":1,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/posts\/320\/revisions"}],"predecessor-version":[{"id":321,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/posts\/320\/revisions\/321"}],"wp:attachment":[{"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/media?parent=320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/categories?post=320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.safechoicemn.com\/blog\/wp-json\/wp\/v2\/tags?post=320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}