When it comes to life insurance, there are two main types: term and permanent. Term provides coverage for a specific period or a certain term, and Permanent covers the entire span of your life.
The information provided below applies to life insurance sold to individuals.
Term Life Insurance is only paid if death occurs within the policy term, typically between 10 to 30 years. Most term policies provide no additional benefits. Term Life could be right for you if you are seeking life insurance for a limited time frame.
Permanent Life Insurance is paid when you die. If you live beyond a certain age (120 years of age with most insurance companies), the policy will pay you the death benefit.
If security is important to you as well as flexibility, lifetime coverage and cash value, one of the different types of Permanent Life Insurance may be the best option for you.
There are four main types of permanent life insurance: whole life, universal life, variable, and variable universal life.
Whole Life Insurance: the most common type of permanent insurance. The premium is paid on a regular basis and offers a death benefit as well as a savings account.
Universal Life Insurance: offers greater flexibility than Whole Life Insurance in that you have the option to increase the death benefit upon passing a medical exam. The savings account (cash value account) typically earns interest at a money market rate. Once your account has accumulated earnings, there is the option to alter premium payments as long as there is enough in the account to cover the costs.
Variable Life Insurance: includes both death protection and a savings account for investing in stocks, bonds, and mutual funds. The policy value may grow more quickly, yet more risk is assumed. Your death benefit and cash value may decrease if your investments perform poorly; however, there are policy options that guarantee your death benefit will stay above a certain minimum.
Variable Universal Life Insurance: encompasses the features of Variable and Universal Life Insurance policies in one.
There is an option to combine Term and Permanent Life insurance to best meet your needs.
With a Life Insurance policy, you can provide financial leverage to your family, both income tax and estate tax-free, to be used however they want or need.
To learn more about our Life Insurance Policies, contact one of our experienced professionals today.