A Little History of Life Insurance
Life insurance first started in America way back in 1759 when Presbyterian Synods set up the Corporation in the name of Relieving the Poor and Children of Presbyterian Ministers. Soon after the Episcopalian ministers in the area followed suit with their own fund. Beginning in 1787 Life Insurance companies began sprouting up offering policies to the general public. Most of these early companies floundered early and it was not until the 1830's that companies were met with success. In the industry success, Government also played a very key role, The American industry boomed, expanding global, and the number of successful companies multiplying exponentially.
Types Of Life Insurance
Life insurance falls into two broad categories, Term Life Insurance and Permanent Life Insurance. Term life insurance is the simplest and cheapest to begin. Insurance is purchased for a fixed time period, usually between 1 to 30 years or some thing like that. In most cases at the end of the term the policy can be renewed, but most likely at a higher rate. A fixed amount is paid to your beneficiary if you die during the term of the policy.
As far as Permanent Life Insurance is concerned, there are three main options to choose from: Whole, Universal and Variable Life Insurance. All three provide coverage over the entire course of your life and are not based on term periods. The companies will invest a set portion of your premium and you will often receive dividends from these investments. These dividends make up the cash-value of the policy. Some policies will allow you to borrow against the cash value while still retaining the death-benefits. Whole Insurance has a set premium you pay through the length of the policy, your premium should never go up. The guaranteed cash value of the policy grows throughout its life which determines the payout amount.
With Universal Life Insurance is a more flexible policy that allows the insured to change the premium payment or death benefit over the the length of the policy to fit changing situations.
So I told you everything that you are looking for in the very simplest manner. Now the choice is yours, to choose which type of insurance you are looking for and which fitted in your budget.