There is typically no cash value in the policy, and once the term is up you no longer owe any premium or are covered by the insurance. The term of the policy is for a given number of years (typically 10, 20, or 30), and as long as you pay the premium your beneficiary will get the face value at your death. Term life insurance is the least expensive option available and also the simplest. If you continue to pay the necessary premiums, though, it will continue to remain in force regardless of your age. This is the most flexible insurance option with regard to payments, but can be expensive to maintain in later years. Cash value is also built up in the early years, if premiums paid are sufficiently high, and can be used later to help pay for the increasing cost of insurance within the contract. Universal life insurance is similar to whole life insurance, except that the premiums can vary depending on your ability and desire to pay. The cash value earns an interest rate set in the contract and does not vary. Cash value builds up in the insurance contract over time, which can be utilized by you during life or added to the death benefit. As long as the premiums continue to be paid, your beneficiary will receive the face value at your death, regardless of your age. Whole life insurance is the most expensive type of insurance, but is designed to last your entire lifetime. Here are some brief descriptions of the available types: Whole Life Insurance Variations among them include premium amount and type, cash value and investment options, changes in premiums, and how long the insurance lasts. There are several different classifications of life insurance. You should perform your own analysis to come up with an amount you and your spouse are comfortable with.
Keep in mind that just because it is the most they offer, doesn’t mean that it is all you need.
#Pterm or cash value plus
The maximum amount of insurance available through FEGLI is roughly six times your salary, utilizing the Basic insurance plus five times Option B.
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