Online Transfers with HiFX

HiFX Review 3

Halewood International Foreign Exchange Limited, or HiFX, is a successful P2P money transfer business. The spotless record of their performance in the last 20 years has earned them a name that is trusted and valued by millions of customers. In 1998, three visionaries named Shaun Taylor, Matthew Knowles, and Laurence Butcher established the company. Their primary focus is offering a cheaper and more reliable means of international fund transfers. Today they transfer money to over 170 countries in more than 142 currencies. Just a few years ago, they merged with the prestigious Euronet Group. Apart from personal money transfers, they also serve many businesses and their unique needs. Their services are highly appreciated by the customers, earning them a score of 9.4 out of 10 on TrustPilot. This article is focused on the HiFX review and their services in order to give you a better view of the company.

Get started with HiFX

A customer can transfer a payment with HiFX by registering a free online account. The registration process is very simple; you just have to submit your details and proof of identification for verification. Once you have an account, select the transaction type and enter the following details to make your first transfer:

  • Select your currency
  • Total amount to be sent
  • The required details of the sender
  • Complete details of the recipient and their account’s details

When all the details are entered, then you make the payment. An instant confirmation email is sent by HiFX as soon as the transfer is processed. You will also receive interim updates over SMS.  

Is Your Money Safe with HiFX?

Customers have really trusted HiFX for last 20 years; their glowing reviews show how truly reliable they are. Their customers have scored them an average of 9.5 out of 10 on Trustpilot. HiFX is regulated and licensed by FCA, which compels them to follow certain guidelines. In order to prevent any danger to their customers’ money, they require the company to keep it separate from the HiFX’s money. Every year they provide financial solutions to over 6000 businesses and transfer billions of dollars. They manage and satisfy over hundred thousands customer around the world every year. In order to protect the privacy of their customers, they use world-class technology on their website. For last 20 years, HiFX has performed better than the expectations of its customers; because of this, HiFX is definitely one of the most reliable names in the business.

Is Your Money Safe with HiFX?

How much will a transfer with HiFX cost you?

If you are wondering which service provider charges the least, you will be interested to know that HiFX charges nothing for fund transfers. They also offer very impressive exchange rates. But in the case of a payment made with a credit card, that fee would be applicable. It’s important to mention here that there are a few service providers who are offering better exchange rates than HiFX. Exchange rates play a major role when the money is converted and handed over to the recipient. If the exchange rates are lower, you will receive less money in the end. HiFX has managed to become their customers’ favorite service by having zero fees. But without a better exchange rate, they won’t have the best deal for all exchanges. Even a small difference in the rates can make a tremendous difference. It wouldn’t be difficult for their competitors to beat their transfer fees by offering a noticeably better exchange rate.   

Advantages of HiFX’s services

  • You can send your money to almost anywhere with their large network that spans 170 countries.
  • They offer fast fund transfers that usually take only one day (but may take up to 4 days in some cases).
  • Customers are highly satisfied with their performance for the last 20 years.
  • Every customer’s issues are handled by a qualified team of customer support specialists.
  • You can easily pay for your transfer with a credit card, debit card, or bank account.
  • Customers are provided with updates of their transfer via SMS or email.

The Flaws I Observed in HiFX

HiFX gives you many reasons to choose them as their service provider for your international fund transfers. But it doesn’t mean they have nothing to improve upon. While HiFX offers very competitive exchange rates, they are still not the best in the business. You can easily find a service which provides better exchange rates for the same types of transactions. In addition, they don’t have a mobile app for their services so all of their services have to be accessed through their web page. Mobile apps usually offer convenient money transfer solutions to their customers whenever they want. Another convenience which many companies provide is a physical cash pick up option. All funds are sent only to the bank accounts, and they don’t have any physical locations. This could be a bad news for those who don’t have a bank account in their name. HiFX also doesn’t support sending money to a credit or debit card.

Overall review on HiFX

In my opinion, if you are looking for a new service provider for international transfers, you should definitely try HiFX . I came across so many great reviews of their services. Almost every customer praises their economical pricing, great customer experience, and smooth transaction. HiFX has been featured multiple times in prominent publications like The Daily Telegraph, The Sunday Times, and The Guardian. They admire HiFX every time!  After becoming part of Euronet Group, HiFX is now more financially stable.  When compared to the all of the newly established fund transfer companies, HiFX gives you trust and stability with its presence in the business for 20 years. This certainly makes it the most desirable choice of them all.

How to send money from the UK to Australia

People send money from one country to another for so many reasons. Some send it to family or friends, while some need them for business purposes. But in either case, everyone wants to get the best deal. Choosing the right service provider is always a big decision. It involves many variables which you have to keep in mind. The key factors which help in making the right decision are: a low transfer fee, good exchange rate, and the speed of delivery. Apart from these, customer-friendly service and reliability of the company are also major concerns. In this article, I will explore a few options with which you can send money from the UK to Australia (If you wish to learn about sending money from the USA to Australia, you can refer to this article). There are plenty of options available for transferring money between these two countries. Let’s look at some of the major services which you should consider when sending money.

Online money transfer services

Online services are the most convenient way of sending money. If you send small amounts at frequent intervals, this is the easiest way to do it. You will have to register before you can make a transaction; this mostly painless process can take some time, however. Most of these online services are required to verify your identity before they process your transaction.

To find the best service provider for yourself, you need to look at the final amount you will be sending to the recipient. Two things which affect the cost are the transfer fee and exchange rate. If the fee is too high, it will significantly reduce the amount being received. Also if the exchange rate is low, it can lose you tons of money. So, you should look into what the final output will be to get the best deal on your exchange.

How to send money from the UK to Australia

Here I have taken a few well-known online agencies involved in fund transfer and conducted some research. I sent GBP 100, GBP 1000 and GBP 10,000 from the UK to Australia with the help of each of these agencies. In the table below, I have compared the total sum received on the other side. These were transferred with bank accounts, so they don’t include any credit or debit card fees.

Amount sent TransferWise CurrencyFair Western Union WorldRemit Xendpay.com
GBP 100 AUD 175.71 AUD 173.90 AUD 172.55 AUD 176.24 AUD 176.57
GBP 1,000 AUD 1,773.00 AUD 1,775.00 AUD 1,771.85 AUD 1,778.24 AUD 1,775.53
GBP 10,000 AUD 17,746.07 AUD 17,786.00 AUD 17,770.00 AUD 17,798.24 AUD 17,755.34

Transfer fee

WorldRemit offered the lowest fee amongst all and charged GBP 0.99 for all amounts. Western Union was also close to it with a very small fee of GBP 2.9 for sending GBP 100, GBP 1000 and zero fees for GBP 10,000. CurrencyFair offered a flat fee of GBP 4 in all cases. TransferWise and XendPay offered equally good fees for the lower amount, but the fee shot up with bigger amounts of money.

Exchange Rates

When I compared the exchange rate provided by these agencies to the real exchange rates, I found that TransferWise offered the closest to the real deal. When sending large sums, this made a huge difference in how much I received on the other side. The other agencies also offered good exchange rates with less than 1% deviation from the real exchange rates.

Amount received

WorldRemit gave the best amount received overall. For lower transfers, TransferWise and Xendpay were also good, while CurrencyFair was the next best option for larger amounts. TransferWise was also the fastest to deliver the payment which took only one day. The other companies took more time.

Conclusion

All of these services have a great reputation and are trusted by many customers worldwide (You can check out customer’s reviews on Trustpilot to get an idea of the customer experience). They all have a large international networks and can process your transactions to many countries in record time. While this isn’t all of the online transfer services available, these are the best in my opinion. They get your money where you need it go cheaply, quickly, and all with sterling reputations.

What are P2P payments and online transfers?

What are P2P payments and online  transfers?

It is easier and faster to transfer money abroad nowadays. With P2P payments, you can easily send money to your friends and family. You can do your transfers online or using your mobile phone. The most important is to find P2P service which will be the right solution for you.

Peer-to-peer payments

With peer-to-peer payments you can send and receive money from your bank account or a card to the recipient’s account.

PayPal is the most famous PSP service, but other services are growing, too. You should find out about other services and compare them. Find the one that will work best for you. Compare estimated fees, exchange rates, and transfer speed.

It is easy to use peer-to-peer payment accounts. Firstly, choose the service for transferring money, then create an account on its website. It will take you only a few minutes or sometimes less than a minute. You must provide your bank account, credit or debit card. Sometimes you will need to verify your identity.

When you want to send money, choose the recipient’s country, write details about him, and the amount you wish to send. The money will arrive in minutes or days. Transfer time depends on the service you choose. It can also depend on chosen payment or payout method, too.

TransferWise Peer-to-peer payments

P2P services

P2P payment services will do the transfer for you. They are better than banks. Pros of these services compared to banks:

  • They are cheaper than banks because they will charge you lower fees. If you use a bank for sending money, you will pay around 5% of the transaction. With P2P services, you will usually pay 0.5 to 1.5% of the amount. Fees sometimes depend on many factors, but they are always cheaper than banks’ fees.
  • Banks will usually offer higher exchange rates. Some of the P2P services will offer you mid-market rates.
  • They will deliver your money faster than banks.

Send money to friends and family

Technologies are changing fast. Sending money to friends and family became easier. You don’t need to use a bank as your provider anymore. You can use P2P services or applications. Here are some of the applications:

  • TransferWise
  • Square Cash
  • Venmo
  • Popmoney
  • Zelle
  • Google wallet
  • Dwolla

TransferWise

This is a peer-to-peer international money transfer service. How does this system work? If you want to send Euros to Dollars, it will find someone who needs the opposite transfer. These exchanges are done automatically and you don’t need to care about how it works under the hood.

With this service, your money will arrive at your recipient fast, in only 1-2 days. You won’t pay high fees for sending money. It will charge you only 0.5% of an amount for most of the destinations.

Money transfer options:

  • bank transfers
  • credit and debit card
  • Facebook Messenger

TransferWise is different from banks and other exchange services because it offers you mid-market rates for transferring money abroad. You can check the fees and the exchange rates on its website, and you don’t need to worry about hidden fees anymore.

How TransferWise Works

CurrencyFair

This is one more P2P service for sending money worldwide. It is founded in Ireland, in 2009.
Its exchange rates are set by the users, and the fee is $3. You can also use MarketPlace, and sell your currency into another. Sometimes you can get better exchange rate than a mid-market rate. You will pay an additional fee which is 0.15% of the amount. The money will arrive in a couple of days.

Xoom

Xoom is a popular service for sending money. PayPal is its owner. If you decide to use this service, it promises you that the money will be delivered instantly. It actually depends on chosen payment and delivery option. If you pay using a bank account, transfer time depends on the bank. The delivery time is fastest when you use debit or credit card for sending money.

The transaction fees depend on the payment method, the recipient’s country and the amount you want to transfer. They will be lower if you choose to pay with a bank account.

Xoom doesn’t use mid-market rates as TransferWise. Its rates are higher. You should be ready to pay transfer fee plus a hidden fee in added to the exchange rate. Before you decide to send money, visit its website and see potential charges for transferring money abroad.

P2P payments are the best innovative solutions that improve international money transfers. Choose TransferWise, CurrencyFair or Xoom service, and enjoy simple, safe, fast and cheap money transfer process.

TransferWise Review

TransferWise Review

It wasn’t simple to find a good option for send money abroad to my family. I can pick a bank or one of various exchange services, but most of them will charge you a lot in fees. I was extremely delighted to find out about TransferWise. It utilizes the mid-market exchange rate for currency conversion. I additionally intended to avoid high costs that financial institutions will certainly charge me. I picked TransferWise as my service provider, and it was the right choice for me. Are you prepared to learn why I choose TransferWise? Keep reading my TransferWise review and find out how to save money on your next transfer.

What is TransferWise?

TransferWise Review

TransferWise is a relatively new online service which will assist you in sending out your cash to anyone who lives in another country. The company was found in London, in 2011. Its owners are Kristo Kaaramann and Taavet Hinrikus. They had a strategy to improve economic services and money transfers in particular. They were inspired by their individual experience, and made a decision to fix an issue about transferring funds abroad. We must be thankful for these guys as they made sending out cash with higher fees is the past. How did they start creating TransferWise platform? They both are Estonians but who had to work between the UK and their country. They needed to transform from Euros to Pounds with a bank, however it had not been low-cost. Hinrikus was paid in Euros due to the fact that he had UK account. Kaaramann was paid in Pounds since and he had a bank account in Estonia.

They end up with an excellent plan. Hinrikus was putting his Euros right into Kaaramann’s Estonian account while Kaaramann was doing the contrary. They desired to develop more affordable solution compared to traditional financial institutions. It was actually TransferWise.

This solution becomes really popular at present. Its customers were sending ₤ 1 billion each month utilizing this service in 2017. Are you captivated?

Are you wondering how does TransferWise work?

Are you wondering how does TransferWise work?

This solution is based on A peer-to-peer system (P2P) that boosted money exchange economy. Did you know that? Thanks to P2P, individuals can exchange money directly but same time without knowing each other.

TransferWise is a peer-to-peer money transfer solution. Imagine you have to transfer Dollars to Euros. TransferWise will discover a person that wishes to perform an opposite transfer Euros to Dollars. It will just transfer his Euros to you, and your Dollars to him directly without crossing any border. It works perfectly well as both parties benefit from it. There is no requirement for an interaction between you two. TransferWise will do it. Same time you don’t even have to make an effort to understand P2P

TransferWise fees

You probably know that some banks claim their international transfers are free (or almost free). Did you know that they will still charge you for the transfer? They do it differently, through a hidden margin that they add on top of the exchange rate. I chose TransferWise for sending out money to people who do not reside in my country and this is why:

Transferring cash with financial institutions is up to 8 times more expensive compared to TransferWise. With TransferWise you will pay a small, fixed fee of only 0.5%, while banks will certainly charge you approximately 5% in hidden charges. So if you decide to use TransferWise instead of the banks or another exchange solution, you will definitely save some money for your next transfer. There is no more shedding money on high charges! I hope this information will make your day.

I did a research to figure out how much you can actually save when sending money abroad. We will assume that you will certainly send 1000 GBP to EUR.

Provider Transfer charge (GBP) Exchange rate Reciever gets (Euro)
TransferWise 4.29 1.1476 1142.68
Nationwide 9.00 1.1238 1113.69
NatWest 10.00 1.1238 1106.81
Moneygram 6.49 1.114 1106.46

TransferWise charges 4.29 GBP for this operation, as well as its exchange rate is 1.1476. The recipient should get 1.142.68 EUR. Nationwide transfer cost is 9.00 GBP, and its exchange rate 1.1238. An amount received as the outcome of this transaction is 1113.69 EUR.

As a conclusion, TransferWise is the least expensive company for sending money abroad.

TransferWise exchange rate

We already spoke about hidden fees that banks typically add to currency exchange rate. If you choose TransferWise you can be assured they will do the exchange with the real rate. But what if the exchange rate goes into not favourable direction? The rate gets frozen and warrantied for up to 48 hours for most of the currency pairs. So there is nothing to worry about in most cases. Otherwise, there is a mechanism that allows you to set a certain threshold when the operation will be cancelled and you get a full refund. Even if you forget to set one it will default to 5% change from the original exchange rate.

TransferWise’s web site has the currency converter that allows you to get a quote instantly. They also offer you to compare the real exchange rate to exchange rate of some popular banks and money transfer providers to see the difference. You do not have to pay bank’s hidden charges any longer.

Is it safe to use TransferWise?

The first step of each transfer is the deposit to TransferWise’s bank account. The obvious question that comes up is – “Should I trust them and send my money?”. The should answer is – yes. TransferWise is safe, so you can use it with no worries. If you intend to find why TransferWise is completely secure, check this TransferWise review. There are my general recommendations for verification of a payment provider:

  • Check out various other reviews in order to see what other people say about it. What was their experience? Did they have any problem?
  • Check if the company operates legally. For example TransferWise is registered with UK Financial Conduct Authority. FCA will certainly provide a reasonable coverage for your money transfers.
  • Check how they operate with customer’s funds. Do they keep them in separate segregated accounts?

TransferWise online account

TransferWise online account

TransferWise is now not only money transfer company but also a virtual bank. They launched this innovative service in 2017. A TransferWise borderless account is an online account but you can use it almost the same way as a real account. The only thing is that you can’t get a debit card assigned to it, but I believe this feature should appear sooner or later.

These are key features of Borderless account:

  • It’s easy to get and to use. All you should do is to signup for a TransferWise’s account. Or activate your online bank account if you are already their customer.
  • You can send funds to lots of countries, and receive it from many countries.
  • You can get bank accounts in different currencies
  • There are no costs for transfer and receiving cash in your local currency.
  • You can make transfers to other countries directly from your online bank account

This account is especially good for freelancers or cross-border workers. It’s easy to get, it’s multicurrency and there are no high costs associated with it. If you have a firm, this account will certainly be a good choice.

I wrote this TransferWise review to help you discover the finest service for sending your funds abroad. I did my best and also I wish it sufficed. The choice is yours but I believe you will likely pick TransferWise as your next service provider. You can also find even more reviews concerning this provider to make the final decision. It is clear that TransferWise has many advantages. I’m one of their loyal clients and I can’t imagine my routine international transfers without them. I think this company deserves your trie, especially that you can get the first transfer absolutely free of charge.

Accident Insurance

Accident Insurance

Long Term Care Insurance Policies

Long-Term insurance is a type of insurance that helps to pay for the care of individuals that cannot care for themselves. This type of coverage is not necessarily related to a medical problem, but it is usually related to an issue of mobility. Most medical insurance policies that are provided by employers may have some long-term care benefits, but they are usually limited in scope.

Every adult should consider getting this coverage because the need for long-term care can happen to adults at any age. Younger adults can sustain injuries from accidents and may need assistance in their daily life while their injuries heal. In this case, long-term care may be measured in months such as 12 to 24 months. Older adults may become incapacitated due to age as well as illness, and they may need assistance for the rest of their lives. For the elderly, Medicare will not cover assisted living or nursing care expenses.

With many policies, there is an elimination period. This serves as a deductible for the policy. A certain time period must elapse before the coverage begins to pay for care. This is usually between one and four months. The longer the elimination period, the lower the premiums will be.

Although many people think of long-term care as living in a nursing home, having this type of policy will cover many things that a person needs to maintain an independent lifestyle. This can include almost anything that a person needs in their daily life that they can no longer do themselves.

The benefits of this type of policy are wide ranging and are dependent upon the policyholder’s needs. They include having a nurse visit and to assist in areas of hygiene such as bathing. It can also include assistance with getting groceries and preparing food. They also can help to pay for resident care. This includes convalescent centers where patients are given 24-hour care.

Long Term Care

Long Term Care

Long Term Care Insurance Policies

When Thinking About The Long Run, Think Long-Term Insurance

Long-term care insurance is a product that can be purchased in order to help with health needs over an extended period of time. Typically the benefits under this type of care insurance are those that are not covered with usual health insurance plans and policies offered by employers. Some examples of individuals who can reap the benefits of long-term insurance would be those who are unable to perform basic daily activities such as bathing, getting dressed, eating alone, or walking.

This form of coverage can be offered as either a tax qualified policy or a Non-tax qualified policy. For a tax qualified LTC policy, an individual must be unable to perform at least two daily living activities, and must require care for at least 90 days. Tax qualified policies are also non-taxable.

For a non-tax qualified LTC policy, the individual’s doctor can specify that long term care is needed because of the absence of the ability to perform at least one daily living activity. Though the requirements on this type of policy are less strict, it is possible that an individual or family might face a significant tax bill as a result of these benefits.

There are many benefits included in long term care coverage. Facilities such as home care, assisted living, adult daycare, respite care, hospice care, and nursing homes are generally covered under these plans. If home care coverage is purchased as a part of LTC coverage, the benefits will also include an in-home nurse, caregiver, housekeeper, therapist, or companion if needed.

One of the best benefits of long term insurance is the peace of mind knowing that family member’s won’t have to deplete savings account for the care that an individual requires. Though governmental programs do cover the cost of some of these benefits for those who might not be able to otherwise afford them, they do not cover in-home care, which is preferable to many.

Disability Insurance

Disability Insurance

Disability Insurance Policies

A disabling injury can have economic impacts ranging from belt-tightening to bankruptcy filing, but Disability insurance can counteract that financial hardship. Disability coverage is a safety net for injured workers, but you can easily slip through the cracks if you are unfamiliar with the system.

Before the need arises, you should find out what type of insurance is offered by your employer. Most states require a minimum level of coverage, and almost 50% of larger employers offer policies in addition. Long-term group policies can pay about half of your normal salary, up to the coverage limit, and provide benefits that may last until you are eligible for Social Security.

If you cannot get insurance through your employer, or if the coverage is inadequate, you can buy your own policy. Most private policies pay up to 70% of your pre-disability income. You can choose a non-cancelable policy, with premiums that can’t increase, or a guaranteed renewal policy, where you cannot be denied coverage.

Even if you have your own coverage, you should file a Social Security claim if your disability is expected to last for an extended time. Policyholders receiving long-term benefits must apply for SS coverage after they’ve received payments after two years. The SSA pays two different kinds of benefits: SSDI and SSI (Supplemental Security income). SSI is for workers who do not have enough earnings credits to be eligible for retirement benefits.

Keeping yourself covered with Disability insurance can protect you and your family in the case of an unfortunate event. Learn more about this coverage and how it can benefit you by speaking with one of our advisors.

Universal Life Insurance

Universal Life Insurance

Universal Life Insurance Policies

Protect Yourself With Universal Life Insurance

Universal Life insurance offers coverage for a family’s growing needs. If it is offered as a workplace benefit, it may provide an employee’s family with the financial resources they need to thrive through the changes a family may go through over time. This insurance provides financial protection for those who plan on getting married, who plan on having a baby, or who may start a new career.

The process works in two ways: First, it provides long-term protection, and second, it offers flexibility, which is important when handling needs that will evolve as a part of life. Although anyone can obtain coverage at any age, the best time to get this type of insurance is when a person is young and in good health. This allows for lower rates and increased benefits.

Those who take excellent care of their health by consistently maintaining a healthy lifestyle – a proper diet, regular exercise, and no smoking or substance abuse may get an improved rate. However multiple factors are considered when determining policy rates.

Flexibility means that the policy can be changed as life progresses. Since coverage can be reduced or increased while still retaining the policy, it is an excellent choice for those with fluctuating incomes; like business owners or independent contractors. However, underwriting approval is necessary to increase coverage while decreasing coverage might impact the policy guarantees.

This insurance policy usually offers the following primary benefits:

  • It is affordable coverage for a working person.
  • It accumulates in cash value over time.
  • It provides available funds when needed if the insurance is paid-up to that date.

Universal life insurance is a form of permanent life insurance available in the United States. Under the policy, excess premium payments above the current insurance cost can be credited to the policy’s cash value.

Critical Illness Insurance

Critical Illness Insurance

Critical Illness Insurance Policies

Critical Illness Protection Will Always Come In Handy

Critical Illness insurance is a type of insurance that can provide a lump sum cash benefit to the insured if they are determined to have one of the critical illnesses identified in their insurance policy. This type of insurance was introduced in the late 1990s to help individuals cover their expenses associated with various critical illnesses.

Critical Illness insurance is applicable to any individual who is concerned about the risks of critical illness. The three primary illnesses covered under critical illness policies include heart attack, stroke and cancer. However, these policies may also cover conditions such as heart transplants, coronary bypass surgery, kidney failure, angioplasty and paralysis. Individuals may need this insurance for a variety of reasons, such as to pay for their medical treatments that are not covered by their health plan or to pay for their mortgage when they are recovering. Other reasons may include having cash to replace a spouse’s income while they are caring for the insured, and to pay for travel for treatments not available in the local market.

Critical illness policies work by significantly reducing the financial losses that are normally incurred without the insurance. As soon as an individual is diagnosed with a covered condition, the insurance company provides a single lump sum payment that is tax-free. Depending upon the specific policy, these cash payments can range anywhere from $10,000 to $1 million. In addition, some policies will provide multiple cash payments for separate critical illnesses. For example, if an individual is diagnosed with cancer and survives, they will receive a cash payment. In addition, they will receive another cash payment in a few years if they suffer from a heart attack.

There are essentially two types of critical illness policies, Simplified Individual Protection and Fully Underwritten Individual Plans. The Simplified Issue Individual Protection plans are issued after just a few health questions, are generally affordable and are available in amounts up to $50,000. Fully Underwritten Individual Plans are issued after medical information has been provided to the insurance company, and they are available in higher amounts.

Life Insurance

Life Insurance

Life Insurance Policies

A Short Guide To Life Insurance

Life insurance is a type of insurance that is designed to pay money to a designated person if the policyholder passes away. This insurance is a contractual agreement between the policyholder and the insurance company. As long as premiums are paid, the insurance company will pay upon the death of the covered person, with a payout that depends on the amount of the policy. There are three types of policies available.

Term life is one of these policies. It is a policy without a cash value. Due to this, people often choose it because the premiums are much lower than other life insurance policies. This type of coverage provides the policyholder with a specific amount of coverage for a specific period of time, known as the term. For example, a term policy can be valid for 10, 20, or 30 years. Premiums are set as a fixed rate for the term.

Whole life is another policy available. With this insurance, the benefits paid out include both a death benefit and a cash value. The policy continuously builds cash value, similar to a savings account, ensuring that when a covered person passes away, the benefits are paid in addition to the policy amount. Policyholders are also able to borrow against the cash value amount if needed, unless it is a variable policy. The premiums are slightly higher than term life.

Universal Life insurance is the third policy type. A universal policy is a lifetime insurance that allows the policyholder to change premium amounts, death benefits, and aspects of the cash value including how much goes to premium payments and how much is invested. On the other hand, a universal variable policy is a combination of a variable whole life policy and its investment flexibility with a Universal Life policy and its abilities to change benefit and premium amounts.