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2. TERM LIFE INSURANCE
 Life insurance is a contract between an
insurance policy holder and an insurer, where
the insurer promises to pay a designated
beneficiary sum of money upon the death of
the insured person.
 There are three key factors to be considered
in term insurance:
1. Face amount (protection or death benefit),
2. Premium to be paid (cost to the insured),
and
3. Length of coverage (term).
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3. PERMANENT LIFE INSURANCE
 Permanent life insurance is life insurance that remains
active until the policy matures, unless the owner fails to
pay the premium when due.
 The policy cannot be cancelled by the insurer for any
reason except fraudulent application, and any such
cancellation must occur within a period of time defined
by law.
 The owner can access the money in the cash value by
withdrawing money, borrowing the cash value, or
surrendering the policy and receiving the surrender
value.
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4. TYPES OF PERMANENT
INSURANCE
 Whole life coverage
 Universal life coverage
 Limited-pay
 Endowments
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5. WHOLE LIFE COVERAGE
 Whole life insurance provides
lifetime death benefit coverage for a
level premium in most cases.
 Premiums are much higher than
term insurance at younger ages, but
as term insurance premiums rise
with age at each renewal, the
cumulative value of all premiums
paid across a lifetime are roughly
equal if policies are maintained until
average life expectancy.
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6. UNIVERSAL LIFE COVERAGE
 Universal life insurance (UL)
is a relatively new insurance
product, intended to combine
permanent insurance
coverage with greater
flexibility in premium
payment, along with the
potential for greater growth of
cash values.
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7. LIMITED-PAY
 Another type of permanent
insurance is Limited-pay life
insurance, in which all the
premiums are paid over a
specified period after which no
additional premiums are due to the
policy in force.
 Common limited pay periods
include 10-year, 20-year, and are
paid out at the age of 65.
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8. ENDOWMENT POLICY
 An endowment policy is a life
insurance contract designed to pay
a lump sum after a specified term
(on its 'maturity') or on death.
 Endowments can be cashed in early
(or surrendered) and the holder then
receives the surrender value which
is determined by the insurance
company depending on how long
the policy has been running and how
much has been paid in to it.
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9.  This presentation has derived numerous citations from
various sources including http://en.wikipedia.org. The
complete article can be found here.
 LifeInsuranceDirect does not claim the ownership over the
content of this presentation.