Fundamentals of Life and Health Insurance
Fundamentals of Life and Health Insurance RMI 4310
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This 1 page Study Guide was uploaded by Alyson Hills on Saturday October 3, 2015. The Study Guide belongs to RMI 4310 at Baylor University taught by Staff in Fall. Since its upload, it has received 33 views. For similar materials see /class/217897/rmi-4310-baylor-university in Risk Management And Insurance at Baylor University.
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Date Created: 10/03/15
6 I A Comparison Term and Permanent Life Insurance The following points can help you determine if term or permanent life insurance best suits your needs Term Life Insurance Advantages I Initial premiums generally are lower than those for permanent insurance allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest It39s good for covering needs that will disappear in time such as mortgages or car loans Disadvantages Premiums increase as you grow older Coverage terminates at the end of the term Renewal may be too expensive or you may no longer qualify There are no cash values Permanent Life Insurance Advantages L As long as the premiums are paid protection is guaranteed for life Depending on die policy premium costs can be xed or exible to meet personal nancial needs The policy accumulates a cash value against which you can borrow loans must be paid back with interest or your bene ciaries will receive a reduced death bene t You can also borrow against the policy39s cash value to pay premiums The policy s cash value can be surrendered in total or in part for cash or converted into an annuity an insurance product that provides an income for a person39s lifetime or a speci c period A provision or rider can be added to a policy that gives you the option to purchase additional insurance without taking a medical exam or having to furnish evidence of insurability Other options such as reduced paid up insurance or extended term insurance are also available Disadvantages Required premium levels may make it hard to buy the amount of protection needed LIFE the Life and Health Insurance Foundation for Education is a nonpro t organization dedicated to educating consumers about the essential role of insurance within a sound nancial plan For more information about insurance visit LIFE39s Web site at wwwlifelineorg or call IEEBLIFE777 for a free brochure
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