It does not build up cash surrender value or loan value. It is the least expensive form of insurance. Endowment Insurance Pays a stated amount if the insured dies during a specified period of time. These policies are written for a variety of period, and they build up cash value. Variable life permits the policyholder to participate in the investment expertise of the insurance company.
Universal life combines the features of an investment with a term insurance policy.
Settlement Options These include lump sum, interest only, payments for a stated term, payments of a stated amount, and income for life. Incontestability and Assignment Incontestability protects against stale defenses by insurer when beneficiaries may be vulnerable. Property Insurance Hazards, Perils, and Losses Fire or property insurance protects the owner of, or another person with an insurable interest in, real or personal property against loss resulting from damage to, or destruction of, the property by fire and certain specified perils. A loss is an unexpected destruction, reduction, or disappearance of economic value. A peril is the cause of the loss.