Life insurance is important for protecting you and your family. There are two key types of life insurance: permanent and term. Permanent provides coverage for your entire life span, and term provides coverage for a certain period of time.
Term life provides coverage for a specific time period, usually between 10 and 30 years. Once the term period ends, it becomes more expensive. This option may be the one for you if you are seeking life insurance for a certain time frame and is an affordable life insurance option to ensure you receive maximum death benefits.
Permanent Life Insurance protects you for your entire life (assuming premiums are paid) and is paid out upon death. Most insurance companies will pay you the death benefit if you live beyond 120 years of age. There are various permanent life insurance options to choose from, there is the opportunity to build equity in a cash value account, and it tends to be the most cost-effective option in the long run.
Below are the four main types of permanent life insurance:
Whole Life Insurance: the most common type of permanent insurance paid on a regular basis. It offers a death benefit and a cash value account.
Universal Life Insurance: gives you the flexibility to increase your death benefit upon passing a medical exam. The cash value account tends to earn interest at a money market rate, with the option to cover premium payments with this account.
Variable Life Insurance: incorporates death protection and a savings account for investments. More risk is assumed as the policy value may grow quickly. If your investments perform poorly, your cash value and death benefit may decrease; however, there are options that guarantee your death benefit will stay above a certain amount.
Variable Universal Life Insurance: combines the features of both Variable and Universal Life Insurance policies.
In order to provide you with the life insurance that best aligns with your needs, there is an option to combine both Term Life Insurance and Permanent Life Insurance.
Please note that the information above applies to life insurance sold to individuals.
A Life Insurance Policy provides financial protection for your family, income tax, and estate tax-free, so they can use it however they need.
Contact one of our experienced professionals today to find a Life Insurance policy that is right for you.