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Life Insurance

There are a wide varieties of life insurance policies, 7 of those listed below are most common. This doesn’t even include the so-called riders. In addition, there are hundreds of life insurance companies available. To choose the right policy that save money, save time, and save worry at the same time is a tough job even with expert’s help. Red Deer Insurance Agency puts your interests above all and is able to find you the most suitable insurance policy out of hundreds of insurance companies. Our plan guarantees 100% peace-of-mind to everyone. Here are the 7 types of life insurance policies.

Whole Life (WL)

posted Dec 10, 2009 6:33 PM by Hong Lu [ updated Dec 10, 2009 6:33 PM ]

Your premium accumulates cash value in the policy. Cash value has 3-4% guaranteed interest rate. There is opportunities for dividend each year. As long as you pay premium on time, you are guaranteed insurance for life. Insurance company takes all the investment risk. Premium is the highest among all the other insurance types. However, the higher the premium, the more you get later on.

Term Life Insurance

posted Dec 10, 2009 6:31 PM by Hong Lu [ updated Dec 10, 2009 6:33 PM ]

Term life has the lowest premium since it has no cash value and is only meant to provide life insurance for a limited number of years.

Universal Life (UL)

posted Dec 10, 2009 6:30 PM by Hong Lu [ updated Dec 10, 2009 6:30 PM ]

Adapted from Whole Life, Universal Life uses floating interest rate. When interest rate is high, it has better return than Whole Life. When interest rate is low, it has lower return than Whole Life. Premium is flexible and not fixed. If interest rate stays low, policy may lapse. Unviersal Life is popular during the 80’s when interest rate is very high. It has since been replaced with newer and better policies. If you have a very old Universal Life policy, it may be time to consider replacing it.

Variable Universal Life (VUL)

posted Dec 10, 2009 6:29 PM by Hong Lu [ updated Dec 10, 2009 6:29 PM ]

VUL puts investment risk on individual instead of the insurance company. It has the most risk among all the insurance types. But VUL also has the most potential for return. It became popular during the 90’s when stock market boomed. During the two market crashes in the 21 century, VUL policies lost heavily. Red Deer Insurance Agency doesn’t carry this type of life insurance in order to provide only 100% peace-of-mind for our clients.

Indexed Universal Life (IUL)

posted Dec 10, 2009 6:28 PM by Hong Lu [ updated Dec 10, 2009 6:28 PM ]

Indexed Universal Life bases its return on stock market indices. It has less risk like Whole Life but potential higher return like Variable Universal Life. It is a balanced plan between Whole Life and Variable Universal Life and became popular after the internet bubble.

Universal Life with Living Benefits

posted Dec 10, 2009 6:27 PM by Hong Lu [updated Dec 10, 2009 6:28 PM ]

Life insurance traditionally benefits people other than the insured. The insured has no benefits at all. However, life insurance with living benefits changed that view for ever. It is a type of life insurance that can be used even when the insured is still alive. The life insurance benefit can be accelerated when the insured becomes critically, chronically, or terminally illed.

Guaranteed Indexed Universal Life

posted Dec 10, 2009 6:27 PM by Hong Lu [updated Dec 10, 2009 6:27 PM]

Guaranteed Indexed Universal Life is designed to provide guaranteed life insurance for the previously designed Indexed Universal Life. As long as the policy owner pays off the policy within the predetermined period, the policy will never lapse. The premium for GIUL is also lower than the traditional Universal Life. Together with Living Benefit life insurance, it has been the most favorite policy for many nowadays.