Basic Life Insurance

Life insurance comes in three types: temporary, permanent and accidental death. Read on and find out the difference of one from the others.

• Temporary Life Insurance – provides limited coverage to the policy owner. There is a specified number of years in which the policy owner will be insured. The premium for this type of insurance is usually low because there is an agreement between the insurer and policy owner that the insured is highly unlikely to die during the coverage. No cash value is accumulated in this type of insurance.
• Permanent Life Insurance – covers the policy owner until the contract matures. This type of insurance has a cash value that grows over time. The policy owner has the option to withdraw and borrow the contract’s cash value. Surrendering the policy to get the contract’s equivalent value is also possible.
• Accidental Death Insurance – provides coverage for the policy owner in the event of death due to accidents. This includes deaths resulting from serious injuries and not from health problems and suicide. Premium for this type is relatively lower than the other forms of insurance.