TYPES OF LIFE INSURANCE

Term Life Insurance

Coverage Duration: Provides coverage for a specific term, such as 10, 20, or 30 years.

  • Cost: Generally the least expensive type of life insurance.

  • Benefits: Pays a death benefit only if the insured dies within the term.

  • No Cash Value: Does not accumulate cash value or savings.

  • Renewal: Policies may be renewable, but premiums may increase with age.

Whole Life Insurance

Lifetime Coverage: Provides coverage for the insured's entire life, as long as premiums are paid.

  • Fixed Premiums: Premiums remain constant throughout the life of the policy.

  • Cash Value: Builds cash value over time that can be borrowed against or withdrawn.

  • Guaranteed Death Benefit: Ensures a death benefit is paid upon death.

  • Dividends: May pay dividends if the insurer performs well financially, which can be used to reduce premiums or increase cash value.

Index Universal Life (IUL)

Lifetime Coverage: Provides coverage for the insured’s lifetime if premiums are maintained.

  • Market-Linked Growth: Cash value growth is linked to a stock market index (e.g., S&P 500), offering the potential for higher returns.

  • Flexible Premiums: Premiums and death benefits can be adjusted, similar to universal life insurance.

  • Cap and Floor: Growth is subject to a cap on maximum returns and a floor to protect against losses.

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