Understanding Your Life Insurance Options

Understanding the different types of life insurance is essential to making an educated decision on which policy makes the most sense for you and your loved ones task list. Although life insurance comes with many different names, here are some of the more common types of policies people purchase.

Term Life Insurance: This kind of policy will maintain a certain premium for a distinct time period, after which you can opt to continue coverage with a premium that increases annually.

  • Pros: Very straight forward and easy to understand, guaranteed fixed premiums, good for those on a fixed budget, typically the cheapest kind of life insurance.
  • Cons: It’s based on a fixed time period, doesn’t generate any cash value

Universal Life Insurance: A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element which is invested to provide a cash value buildup.

  • Pros: The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change and you have the option of borrowing against the policy.
  • Cons: More expensive because these products offer a cash value and are tax free.

Whole-life Insurance is a type of permanent insurance that combines life coverage with an investment fund. The policy pays a stated, fixed amount on your death and part of your premium goes toward building cash value from investments made by the insurance company.

  • Pros: Lifetime protection that offers a guarantee on the death benefit and guaranteed cash value for a guaranteed premium (also tax free).
  • Cons: This is often one of the most expensive kind of life insurance, but may pay dividends (refunds of unneeded premium) that can be used in a variety of ways

Choosing a life insurance policy that meets your goals can be complicated and confusing. Our team of insurance professionals can help walk you through your options and make the best choice for you and your family.

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