What is Life Insurance?
In simple terms, a life insurance policy is a contract between a policyholder and an insurance carrier. Most life insurance policies have four parts:
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What Kind of Life Insurance is Available?
Whole Life Insurance
You generally make level (equal) premium payments for life. The death benefit and cash value are predetermined and guaranteed (subject to claims paying ability of the issuing company). Whole life insurance can provide coverage for a set period as well as your lifetime. Your only action after purchase of the policy is to pay the fixed premium. The cash value may be accessible via policy loans or withdrawals. However, this can affect the cash value, death benefit, and even policy guarantees the insurance company gives.