Life Insurance and Survivorship Life
Insurance Policies, the primary purpose of life insurance is to provide
financial security for the family of a policy holder in the event of his or her
passing. Most people prefer term life insurance over any other type because it
offers the greatest amount of coverage for the price. Since term life insurance
costs vary, it would be wise to examine a term life insurance rate comparison
chart before purchasing a policy. Using a rate comparison tool saves time since
it allows an individual to research and compare several insurance companies
from one central location.
Rate comparison tools are especially helpful for Individuals looking for
survivorship life insurance policies. These policies are usually sought after
by married couples who have reached their golden years. This is the time when
married couples are thinking about their children's and grandchildren's future
more than their own. It is also the time when saving money becomes a priority
since most senior couples are living on reduced or fixed incomes. Choosing a
survivorship policy is a good option for seniors since it allows two people to
share a policy for one low monthly rate. Since survivorship policies accrue
cash, it also gives the couple an opportunity to maximize the value of their
policy.
Survivorship policies build up cash value because they are actually joint whole
or universal life insurance policies. These coverage options have no end date
and the amount of the premium remains the same. Under these policies, an
individual remains covered until they pass away. This is when the policy
officially ends and the beneficiary (or beneficiaries) will receive what is
called a death benefit. This final payment is what separates a whole life
policy from a universal policy. With universal life insurance, the policy
holder has greater flexibility. He or she can separate the death benefit from
the accumulated cash value and make payments on each one separately.
The flexibility of universal life insurance makes it a good match for a
survivorship policy. It gives the couple an opportunity to make changes to
their policy without any penalties or issues. If they are having a bad month
financially and they wish to reduce their premium, they can pay on the death
benefit and temporarily disregard the cash value. If they have accrued a good
amount of cash from the policy, they can withdraw the money if they need it for
an emergency. The insurance company does not place restrictions on the money
and they can use it as they see fit. They just need to be responsible enough to
pay it back so their loved ones can have as much money as possible.
The difference between term life insurance costs and survivorship insurance
costs varies greatly. If an individual checks a term life insurance rate
comparison chart, they may be inclined to purchase term life insurance based on
price alone. However, this insurance provides the least amount of benefits and
it does not cover an individual for the remainder of their life. Senior couples
looking for life insurance need the greatest amount of advantages and flexibility.
A survivorship life insurance plan will work better for them since it allows
them to maximize their plan benefits. With this policy, they can ensure
financial protection and a comfortable life for their family members.
