Term Life Insurance
Term life insurance provides you protection for a specific price over a specified period of time: usually 10, 15, 20, or 30 years. Coverage expires without value at the end of the term and you will need to either convert your policy to a permanent life insurance plan or purchase a new policy for a new term. Term life insurance pays out a specified lump sum to a beneficiary only in the event that you die before the policy expires. Term life insurance is somewhat less expensive than permanent life insurance due to the drawback of having an expiration date.
Annual Renewable Term: The death benefit is a level amount and will remain the same for the term period. This policy can automatically be renewed without having to provide evidence of good health each year. The premiums may however increase each year with age.
Level Term: The death benefit is a level amount and will remain the same for the term period. Level term policies are usually purchased for a period of 10, 20, or 30 years and the premium generally remains stable over the entire period.
Decreasing Term: The premiums remain level over a specific term, but the amount of death benefit protection decreases throughout the term. Decreasing term insurance is best for you if you have financial obligations that decrease over time such as a mortgage or a loan.
Permanent Life Insurance
Permanent life insurance provides protection throughout your lifetime as long as you continue to pay your premiums in full. Most permanent life insurance policies build cash value for you to use for expenses later in life, such as paying off a student loan or purchasing a new car. Cash value is an attractive part of many permanent life insurance plans.
Whole life policies: The simplest and strongest guarantees of any type of life insurance. Whole life policies allow for the accumulation of cash value on a tax-deferred basis, which can be used when you need it. Your cash value will build slowly and steadily, but as your cash value increases you’ll see it grow faster. It pays to be patient!
Universal life policies: The flexibility of universal live coverage allows for changes to the death benefit and the size and timing of the policy’s premium, to an extent. So as changes to your life take place, so can your coverage. Your tax-deferred cash value account accumulates at least the guaranteed rate of interest, but may accumulate at a higher rate depending on current market rates. Meaning, you may receive more cash value than expected or you may get none at all. Consult with our professionals about over-funding to make sure your universal life policy has cash value.
Variable life: A permanent life insurance policy with a cash value account. Variable life insurance policies require a fixed annual premium for the life of the policy and may provide a minimum guaranteed death benefit. If the cash value account exceeds a certain amount, the death benefit will increase. Variable life policies usually allow for a wider selection of investment options, known as sub-accounts for you to choose from. Your choices can range from a fixed interest sub-account to a highly volatile international growth account.