Oakland California Life Insurance
Permanent life insurance A phrase used to cover any form of life insurance except term; generally insurance that accrues cash value such as whole life or endowment.Life insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired and does not expect a return of Premium dollars if no claims are filed. As an example auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by for example an earthquake or fire. Whether or not these events will occur is uncertain and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.Permanent life insurance A phrase used to cover any form of life insurance except term; generally insurance that accrues cash value such as whole life or endowment.Paying for life insurance definitely hurts. But very few can do without life insurance. The key is to buy life insurance only for the losses that you can not replace such as your income. be careful to avoid narrowly defined life insurance policies that only cover specific loss of life such as accidents plane crashes or cancer. You're better off with insurance for any loss of life for a small increase in premium.
Variable Life Insurance
Variable Life Insurance - also called Variable Appreciable Life Insurance - provides permanent protection to your beneficiary upon your death. This type of life insurance is "variable" because it allows you to allocate a portion of your premium dollars to a separate account comprised of various investment funds within the insurance company's portfolio, such as an equity fund, a money market fund, a bond fund, or some combination thereof. Hence, the value of the death benefit and the cash value may fluctuate up or down, depending on the performance of the investment portion of the policy. Although most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum, a minimum cash value is seldom guaranteed. Variable is a form of whole life insurance and because of investment risks it is also considered a securities contract and is regulated as securities under the Federal Securities Laws and must be sold with a prospectus.
Pros:
Allows you to participate in various types of investment options while not being taxed on your earnings (until you surrender the policy). You can apply interest earned on these investments toward the premiums, potentially lowering the amount you pay.Cons:
You assume the investment risks. When the investment funds perform poorly, less money is available to pay the premiums, meaning that you may have to pay more than you can afford to keep the policy in force. Poor fund performance also means that the cash and/or death benefit may decline, though never below a defined level. Also, you cannot withdraw from the cash value during your lifetime.