Genworth states that it provides four types of life insurance plans, namely Term Life, Whole Life, Guarantee Universal Life and Index Universal Life. Every one of these offers death coverage, but they differ in coverage duration, premium flexibility and other areas.Continue Reading
Term Life has no cash value accumulation; instead, consumers use it to get death coverage for a given period of time, usually between 10 to 30 years, explains Genworth. It attracts the lowest premium since it does not have other benefits other than death coverage. Some policies under this plan can be moved into other types of plans. Whole Life is a lifetime plan with death benefits and accumulation of cash value during the client���s lifetime. It has a fixed premium amount, but its setback is that it yields cash value at a rate lower compared to other plans.
The Guarantee Universal Life plan also accumulates cash value and has a death benefit. Within the limits of a policy, a client can change premium amount and timing. A client can increase or reduce death benefits, subject to insurability, states Genworth. Its cash value is determined by the premiums paid, the policy's duration and the declared interest crediting as guided by the insurer. Its flexibility means that the policy owner gets fewer elements of coverage than with Whole Life.
The Index Universal Life plan also offers death benefits and cash value accumulation. It also offers premium flexibility and death benefit adjustability. Policies under this plan have a greater potential of value growth with fewer risks, explains Genworth.Learn more about Insurance