Type your answer here... life cover
Endowment
== == == == The life insurance policy will state the face value ( death benefit ) of the policy. However, it may not state the amount that each beneficiary will receive as the number of beneficiaries may have changed since it was issued. Until a claim is paid, the beneficiaries will not know how much they'll receive.
It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.
Your death benefit will always be the amount paid to your beneficiaries should you die. Your Face value is almost always the same thing as your death benefit and certainly it is with term insurance. With Cash Value policies however, if you ever make a withdrawl or take a loan on your cash value, this will effect the face value should you die and not pay it back. So suppose you take out a $10K loan on a $100 K policy. Your death benefit is still $100K but your face value should you die is only going to be $90K
Life Insurance
Cash value loans will allow you to keep the policy in force and preserve coverage (sometimes for a lower benefit amount). If you decide to cash out the surrender value instead, your policy will lapse and you lose the life insurance protection.
A matured endowment is a life insurance policy where the current cash value has become equal to the face amount of the policy. The policy is mature. So, the insurance company issues the insured a check for the face amount (death benefit) even though the insured is still alive.
Universal Life allows you to vary the amount of your premium by using part of the accumulated earnings to cover part of the premium cost. You can also vary the amount of the death benefit. There are higher administrative fees associated with this plan due to the flexibility. Term insurance offers a death benefit but no cash value. Whole life insurance is more expensive, but offers a death benefit and cash value. There are also a lot of fees associated with whole life that most people don't realize due to the complex investment formulas. Variable life insurance builds up a cash reserve that can be invested in the options offered by the insurance company.
Whatever amount the face value is also known as the death benefit. Some of the older whole life's were as little as $100. Now it is more like $1,000 minimum face.
If your life insurance policy has cash value, you can borrow from the cash value inside. If you have a term policy with an accelerated death benefit rider then you may be able to borrow against the death benefit if you have a terminal illness.
If you have no cash value on your policy, you will not be able to get a loan against the policy. If you are diagnosed with a terminal illness, all insurance companies have an accelerated death benefit usually included in most policies. Some states also allow selling of your policy to a new policy owner to accelerate portion of your benefit amount.
the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.