Rouseau Insurance Agency, Inc. - 207-282-7568 - Biddeford, Maine 04005 - Home Insurance, Auto Insurance, Life Insurance, Business Insurance
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Life Insurance
Their are many types of life insurance to fit individual needs and circumstance. The following are some of the basic types of life insurance available.

Term Life Insurance — The simplest form of life insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the insurance policy. There is no investment component.

Whole life Insurance — Similar to term, but you purchase the insurance policy to cover your "whole life" not just a set period. Insurance premiums remain level throughout the life of the insurance policy, and the company invests at least a portion of your premiums. Some firms share investment proceeds with policyholders in the form of a dividend. Many companies will offer "a relatively low guaranteed rate of return," but in reality pay at a rate in excess of the guarantee.

Universal Life Insurance — You decide how much you want to put in over and above a minimum insurance premium. The company chooses the investment vehicle, which is generally restricted to bonds and mortgages. The investment and the returns go into a cash-value account, which you can use against your insurance premiums or allow to build. With some universal life policies, sometimes called Type I or Type A, the cash account goes toward the face value of the insurance policy on the death of the policyholder. With a second variety, sometimes called Type II or Type B, the beneficiary receives the face value of the insurance policy plus all or most of the cash account. While Type II is meant to provide a partial hedge against inflation, it demands higher insurance premiums as you get older than Type I.

A variation of a universal life insurance policy, often called universal variable life insurance, allows policyholders to choose investment vehicles.

Variable Life Insurance — With a variable life insurance policy, there is usually a wider selection of investment products, including stock funds. As with a universal policy, returns on investments can offset the cost of insurance premiums or build in the account. And depending on the type of variable life insurance policy, the beneficiaries will either receive the face value of the insurance policy or the face value plus all or part of the cash account.
Rousseau Insurance Agency, Inc. | 207.282.7568 | 1.800.371.5300