Types Of Protective Life Insurance Policy

Types Of Protective Life Insurance Policy by Raymond Nwambuonwo

The Protective Life Insurance Company, based in Alabama, is around for about a century. The company has grown impressively since its foundation in the 1920s and has already become a multi-million dollars corporation, offering asset-protection products and services throughout the country. The life insurance division of the company tends to meet the financial needs of clients and the protection of the essential needs of their family. Depending on the specific period of time for which a client opts to be insured, the Protective Life Insurance Company offers two main kinds of life insurance policies: term insurance and permanent insurance.

Term Insurance Policy

The term insurance policy of the Protective Life Insurance Company addresses the financial needs of people who are seeking protection for a specified period of time (the term) only. The term insurance policy covers a non-taxable death benefit that is paid directly to the policy holder’s beneficiary. The best feature of a term insurance policy is its affordability i.e. the premiums are not high and the protection offered is reasonably advantageous. The term can be renewed for a period ranging from ten to thirty years.

Permanent Insurance Policy

Preferable for long-term financial protection is the Protective Life Insurance Company’s permanent insurance policy. Not only does it carry a tax-free death benefit throughout the client’s life but also reserves accumulated cash value that the policy holder can claim anytime when he/she needs it. Different kinds of permanent life insurance policies are available at the Protective Life Insurance Company. An ‘ordinary life’ (also called ‘whole life’) policy promises life long, constant premium level and death benefits to the insured person. A ‘universal’ (or adjustable) policy has great flexibility in death benefits and the amount of premium paid by the client who can choose the amount according to his/her budget.

Variable Life Insurance Policy

The Protective Life Insurance Company offers a special kind of permanent life insurance policy called a variable life insurance policy. Here the policy holder in effect invests his/her premium into the company’s business, thus having a chance to let his/her policy’s death benefits and accumulated cash value grow more speedily than they do in other insurance schemes.

However, such an investment is not free of risk because the success of the client’s investment depends on the actual performance of the company. In other words, the accumulated cash value and the death benefits may decrease in case the company performs poorly in business. However, some variable policies do maintain a minimum amount of death benefit.