Voluntary life insurance was first made available to employees and is designed to pay the beneficiaries a cash sum upon the demise of the insured individual. It is an optional option offered by employers to employees. The employee pays an amount to the insurance company as security against the promised payment when the insured dies. In return the insurance company guarantees the payment of a specific sum to the beneficiary.
Some other types of permanent life insurance policies are also available under this category. The basic idea is basically the same but the insurance company has more flexibility and offers a wider range of options. An example is the Life Insurance Company. This is a company which offers a wide range of products. They are known for offering the best rates and the best quality products in the market.
A very popular type of voluntary life insurance available today is Term Life Insurance. This policy provides the policy holder with guaranteed protection against a specific period of time. The insurance company is usually paid from the annuity pay outs, if the insurance policy holder dies during the defined period. As with any type of insurance, the premium is one of the major factors which determine the premium amount.
In order to find the best rates on the different kinds of permanent life insurance companies, one needs to look at the amount of coverage that is offered. Most companies that offer the products charge a certain amount as the premium amount. The more coverage the lower the premium amount can be.
Various features offered by some of the companies are medical benefits, death benefits, and the cash value component. These types of advantages differ from one company to another. Many times there are additional benefits such as an investment option or a tax-deferred feature offered by some of the companies.
Life insurance companies also offer a number of products. These include term life insurance and variable Universal Life Insurance. The former provides fixed premium payments over a specified period, while the latter allows the premiums to be adjusted according to the rise and fall of the market value of the equity. This type of policy allows the person to get an adequate amount of coverage if required in the event of sudden death while the policy holder is still alive.
Another type of voluntary life insurance offered by some companies is whole life insurance. This product is not really a permanent insurance policy but provides coverage for a specified period of time span and is not renewable. Some of these policies are renewable and allow the renewal of the premium amount in case the person should have become bankrupt or should die before reaching the end of its term.
There are also other forms of insurance which are not formally termed voluntary life insurance. One of them is the Term Life Insurance, which is considered as the opposite of permanent life insurance.
This type of insurance is mainly meant for the policy holder to cover his living expenses until he reaches a certain age and then it becomes his liability. If the person becomes bankrupt and cannot pay his creditors, the policy holder does not lose his house or property. It is important to bear in mind that this type of policy does not last forever.
With regards to the financial aspects of this type of policy, these policies are usually preferred because they provide guaranteed returns without requiring the policy holder to maintain a good credit rating. These policies have a fixed rate of return and thus it is easier to get out of the burden of debt.
Different kinds of policies also have different levels of benefit for the policy holder. Some of them provide the insured with a fixed sum of money if the insured should die at a certain age while other provide the insured with a percentage of the proceeds from the sale of the property. Others give the insured with a lump sum payment of the death benefit, while there are some which provide the insured with a fixed sum of money if he/she should die in a certain period of time.
There are many different voluntary life insurance policies available in the market today which can be easily purchased from the Internet. These companies sell the products either through the Internet or through their agents.