Learn These Terms Before Shopping for Life Insurance Plans
There are several types of life insurance plans available on the market. It helps to know some foundational terms that describe how life insurance functions. A short and convenient video, "Types of Life Insurance Explained" by Byron Udell, Accuquote CEO, will guide you through the basics of insurance.
First, we have term insurance. The key point here is that coverage has a defined time limit. Whether or not a claim is made, the life insurance expires at the end of the term. Of course, one may re-purchase term life insurance but, with the passage of time, it will become more expensive to cover a given individual. However, for the duration of term insurance coverage, a given benefit payout will be available at a fixed price, making it an attractive, low-cost proposition.
On the other hand, permanent insurance has no set expiration date. As such, the insurance policy is virtually guaranteed to have a claim at some point (assuming it is not canceled), so tends to be more expensive on a monthly basis.
There is more to life insurance. This video and explanation are meant to be an overview of the subject that encourages you to look into life insurance options in more detail.