Understanding Life Insurance

Your need for life insurance will vary with your age and responsibilities. The amount of insurance you buy should depend on the standard of living you wish to assure your dependents. You should consider the amount of assets and sources of income available to your dependents when you pass away. Social security benefits, available cash and other sources of income and investments may not provide the standard of living you have in mind. Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, is the amount to be provided by life insurance. CAL-KOR Insurance can help you with to get a right insurance package for you and your family.

Basic Types of Policies:

Term Life

Life insurance that provides coverage at a fixed rate of payments for a limited period of time. Term Life is inexpensive, but the coverage generally expires at the end of the term, and rates are not guaranteed to be the same.

Permanent Life

Permanent Life covers the remaining lifetime of the insured, accumulating cash value up to its date of maturation. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.

Universal Life

In Universal Life, the premium and disbursement may change. In addition, if the cash value increases, the disbursement value will increase.

Variable Universal Life

Variable Universal Life is an insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, which means relying on the fluctuating stock market may be a burden.

Index Universal Life

IIndex Universal Life gives policy holders the opportunity to allocate cash value amounts to either fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100. Index Universal Life Insurance accumulates more cash value than Universal Life and is safer than Variable Universal Life.


For more information:  Tel: (213) 387-5000  

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