Homework Question on Life Insurance Policies
- Please compare annual renewable term, par ordinary life, \,,,current assumption whole life, variable-life, universal life in terms —- –
- Death benefit
- Cash value
- If cash value or dividends use current interest?
- Policy elements bundled?
- Policy loan allowed?
- Advantages to buyers
- Disadvantages to buyers
- Risks to buyers /
- Advantages to sellers
- Disadvantages to sellers
Homework Answer on Life Insurance Policies
The growing need for individuals to plan for their future in cases of uncertainties has positively impacted to the growth of insurance activities in a great deal. These provisions of life insurance covers have led to the growth of the society through a successful investment atmosphere with the individuals considerate of the opportunities and successes that come about.
The varying nature of the various insurance policies is however worth contemplation when making decisions on which policy is preferable. Unlike all other policies, the annual renewable term policy does not require any commitment from the buyer for the protection on death benefits. All that is required are the premiums which also increase annually and have a protracted period of guarantee for its clients.
Its flexibility nature allows individuals to convert their covers to permanent cash values that they may prefer. Unlike term-life, current assumption policy the premiums are constant from the onset till death. It’s conversely notable that on some instances they may reduce if the rates of interest fall. Individuals in this policy are at crossroad f either gaining or loosing depending on the current state of the market.