An insurance policy that pays a death benefit to beneficiaries (designated by the policy holder) if the insured dies. In return for this protection, the insured pays a premium, usually on an annual basis.  Life insurance is a policy (contract) that guarantees an exact amount of money to a designated beneficiary upon the death of the insured person or to the insured if he or she lives beyond a certain age. Life insurance can lessen the hardship and financial loss from death by distributing funds to the beneficiaries. Brevard Insurance Brokerage can help insure your business or family's financial future.

Life insurance can be divided into three basic types.

• Term insurance is written for a specified number of years; protection expires at the end of the period and accumulates no cash value. Commonly used as LEVEL TERM insurance. For example 5, 10, 20 or 30 year terms.
• Whole-life insurance accumulates a cash value, which is paid when the contract endowes or is surrendered. The premium never change,  plans can be structured to make a limited payments. For example, 10 year, 20 year or pay to age 65
• Universal life - this plan consists of three principles, cost of insurance, cost of administration and mortality costs. These three costs with credited interest define the premium that is structured to never increase. This also grows a tax deferred cash value and can be borrowed or partially surrendered while still having coverage

TERM INSURANCE. Term life insurance is the simplest and least expensive type, as it pays benefits only upon the policy holder's death. With annual renewable term insurance, the policy holder pays a low premium at first, which increases annually as he or she gets older. With level term insurance, the premium amount is set for a certain number of years, then increases at the end of each time period. 

WHOLE LIFE INSURANCE. With whole life insurance, the policy holder pays a level premium on an annual basis. The policy usually covers until the end of the person's life, the policy holder is overcharged for the premium, and the extra amount goes into an interest-bearing dividend account known as a cash value account. The policy holder can use the money in this account to pay future premiums, or can withdraw it or borrow against it to cover expenses.

UNIVERSAL LIFE INSURANCE. Universal life insurance was introduced as a higher-interest alternative to whole life insurance. Universal life premiums are based not only on the cost of the insurance, but also on the interest rate offered on investments. Still, they are usually less expensive than whole life policies. Universal life policies provide individuals with a wider array of investment choices and higher projected interest rates. They are essentially similar to a term policy with a fixed rate of interest guaranteed for a year at a time.

CURRENT ASSUMPTION LIFE INSURANCE. Current assumption life insurance features a fixed annual premium for the duration of the plan. This type of policy pays a set interest rate on premiums received, less the actual cost of the insurance. They can be useful as a tax-deferred investment vehicles. Policy holders may choose to overpay their premiums early in the plan period to accrue cash value. They can withdraw or borrow from the funds later for any purpose, including retirement income, or can use the cash value to pay the premiums for the remainder of the plan period.

RIDERS AND OPTIONS. Most types of life insurance policies give individuals the opportunity to add optional coverage, or riders. One popular option is accelerated benefits (also called living benefits), which pays a percentage of the policy value to the holder prior to their death if they are struck by a serious illness. Another option, known as a waiver of premium, allows an individual to continue coverage without paying premiums if he or she becomes disabled. There is also TERM RIDERS for additional insured person, like spouse or children that can be added. Many policies also provide an accidental death and dismemberment option, which pays twice the amount of the policy if the insured dies or loses the use of limbs as a result of an accident.