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Comparing Different Types of Life Insurance Policies

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Currently president of the Maurice Blond Agency, Inc., Laurel Blond has been selling health and life insurance at the agency, which was started by her father, for more than 25 years. Having recently qualified for joining the Guardians President’s Council, Laurel Blond is an expert in long-term care insurance and life insurance.

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Comparing Different Types of Life Insurance Policies

  1. 1. Comparing Different Types of Life Insurance Policies By Laurel Blond
  2. 2. Introduction • Currently president of the Maurice Blond Agency, Inc., Laurel Blond has been selling health and life insurance at the agency, which was started by her father, for more than 25 years. Having recently qualified for joining the Guardians President’s Council, Laurel Blond is an expert in long-term care insurance and life insurance. Whole-life policies are more traditional policies that combine an investment fund and life coverage. These policies maintain the same premiums throughout their life, building up a cash reserve. They guarantee insurance protection for the insured individual’s entire life and provide a larger benefit than term policies. However, they are more expensive.
  3. 3. Term Life Policies • A term life policy protects beneficiaries from financial loss but comes without an investment component. They last for a specific amount of time, typically with 30 years being the maximum. A universal life policy is a permanent policy that offers flexibility by featuring both whole and term life. The option of varying the premium amount using part of the plan’s built-up earnings makes this plan less expensive than whole life but more expensive than term life. Variable life plans are the most expense and they build up a cash reserve, which can be invested in any of the insurance company’s options. The reserve’s value depends on the success of the investments, so the plan is risky due to its reliance on the stock market.

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