Life Insurance Company in Maryland
Various Types of Life Insurance
Getting life insurance coverage is very important. It is, after all , the final gift that you will leave your family. When individuals gets their life insurance done, they are more at peace, secure in the knowledge that if something happens to them, then their families would be taken care of.
There are many types of life insurances. The most talked about are Term Life and Whole Life. Universal Life, which is quickly gaining popularity, is a combination of these two.
This life insurance is an insurance policy, which is guaranteed to cover the customer over a specific period or term. Generally, the policyholder pays the same rate over the entire period of the policy and guaranteed a specific amount of cash at the time of death.
There is a wide range of alternatives when the time period of Term Life has to be opted for. It can vary from one year to thirty years. There are basically two variations of Term Life insurance cover- level term and decreasing term. In the level term, the rate remains the same over the entire period and some cash is given to the family at the time of death. But the decreasing term plan entails a reducing rate, which gets the amount to decrease over the years also.
Most people generally opt for the level term because of the substantial amount of cash their families will be entitled to in the event of the policyholder’s death or maturity. Apart from this, there is also the renewable plan, which gives the customer the option of renewing the policy once the term is over. This is very helpful for those people who would not be normally eligible for Term Life.
This life insurance policy has an different working mechanism from Term Life insurance cover. In this plan, the family of the deceased gets the benefit amount whether the policyholder dies in one month or in 90 years. In this plan, the payments always remain the same and so does the death benefit. Because of dividends the policy can build cash value and increase the death benefit. Money can be borrowed from the cash value for any reason including medical, family and educational needs.
Insurance plans, give more options to the policyholder than Whole Life plans. One can increase the benefit amount, the premium amount and the schedule of payment. Cash can be withdrawn on a tax favored basis when it is needed. Please consult your insurance agent or accountant for details on this.
Variable Life insurance usually does not have the same guarantees against loss of principle. Abrams/Mendelsohn, Inc. does not carry this kind of insurance because of the lack of guarantees. The money that is in the cash value savings account is put in brokerage accounts that invested in stocks, bonds and the like.
As an independent agency, we find the RIGHT company for you.
Abrams/Mendelsohn Insurance, Inc.
722 Cockeys Mill Rd
Reisterstown, MD 21136
Phone: (410) 517-2055
- Owings Mills
- Perry Hall
- Ellicott City