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Life Insurance 101

Life Insurance 101


If you are considering acquiring a life insurance policy you may have come across complex and confusing terminology. For such an important issue is only natural to try and get a firm grasp on what you are really signing up for. Don't worry, we have compiled a couple of common terms that you may come across while researching a policy.


Final expense life insurance


A permanent life insurance policy designed to cover immediate expenses related to the policyholder’s death, such as the cost of the funeral or medical bills. Final expense life insurance policies are typically guaranteed issues, never expire, and are level premium.


Cash surrender value


The cash surrender value is the amount of money you receive if you cash in your permanent policy. It’s typically the current cash value of your policy minus any outstanding loans and interest fees, as well as any surrender or administrative fees listed in your contract. Typically the surrender value is between 50-80% of the policy’s actual cash value.


Life Insurance Riders


Many insurance companies offer policyholders the option to customize their policies to accommodate their needs. Riders are the most common way policyholders may modify their plans. There are many riders, but availability depends on the provider. The policyholder will typically pay an additional premium for each rider or a fee to exercise the rider, though some policies include certain riders in their base premium.

許多保險公司為保單持有人提供定制保單選擇,以滿足他們的需求。附加條款是保單持有人修改保單計劃的最常見方式。有很多保險附加條款的選擇,但是否可用則取決於投保的保險公司。保單持有人通常會為每個附加條款支付額外的保費或支付費用來行使附加條款,儘管有些保單的基本保費中已經包含了某些附加條款。 Cash-value life insurance


If you have a cash value life insurance policy, you can generally access the money through a withdrawal or loan, or by surrendering the policy and ending it.


One of the reasons to buy cash value life insurance is to have access to the money that builds up within the policy. When you pay premiums, the payments generally go to three places: cash value, the cost to insure you, and policy fees and charges. Money within the cash value account grows tax-free, based on the interest or investment gains it earns (depending on the policy). But once you withdraw the money, you could face a tax bill.

購買現金價值人壽保險的原因之一是可以獲得保單中積累的資金。當您支付保費時,支付的金額通常會分配到三個地方:現金價值、投保的費用,以及保單費用和收費。現金價值賬戶中的資金所賺取的利息或投資收益(根據不同的保單)是免稅的。但是,一旦您取款,您可能會被收稅。 Source 文章來源:

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