While there are different types of life insurance products, they all provide needed financial security for your family in the event of your death. Most fall into two categories, term and permanent.
Term Insurance is designed to meet temporary needs. It provides protection for a specific period of time, 10 to 30 years, and provides a death benefit should you die during the specified term period of the policy. Many insurance companies offer conversion options so you have a period of time to convert to a permanent policy without answering medical questions; some offer return of premium options which increase the premium but return all premium payments to you at the end of the term; others offer disability add-ons and small coverage add-ons for children.
Permanent Insurance is designed to provide longer term protection, to age 100 and longer. Some build cash in the policy and some don’t.
Whole life insurance is generally the most expensive permanent insurance contract available and has the highest guarantees in case values. Contracts usually provide a level premium and level death benefit as well as a build-up of cash that can be used later on to pay premiums or withdrawn.
Universal life insurance is less expensive than whole life and very flexible. Many build cash and many others are designed to accumulate no cash at all. They simply offer a guaranteed lifetime benefit as long as the premiums are paid.
Life insurance plans and the way they are offered by insurance carriers vary greatly. We always analyze many different companies to decide which is the most cost-effective for your specific needs.
We suggest that you review your life insurance needs periodically. Life changing events such as marriage, divorce, birth or adoption, loans from purchasing and a home or business require a fresh review.