Chapter Exam Life Insurance Types Of Policies Flashcards

Life insurance policies come in different types, each designed to serve a specific purpose and cater to individual needs. Term life insurance, for instance, provides coverage for a specified period, usually between 10 to 30 years. Permanent life insurance, on the other hand, provides lifetime coverage and builds cash value over time. Whole life insurance, a type of permanent life insurance, offers a fixed premium and a guaranteed death benefit. Universal life insurance, another type of permanent life insurance, allows for flexible premiums and investment options.

In addition to these, there are other types of life insurance policies, such as variable life insurance, which combines a death benefit with a savings component, and indexed universal life insurance, which allows policyholders to earn interest based on the performance of a specific stock market index. Each type of policy has its own set of features, benefits, and drawbacks, making it essential to understand the differences before making a purchase.

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