Life Insurance pays a benefit upon the death of the insured. There are 3 main types of life insurance: Term Life, Whole Life, and Universal Life. Each has its own strengths and special uses. Select a type of insurance below for more information.
Term Life Insurance covers you for a set period of time. If the insured dies during this period, the beneficiary receives a lump sum of tax-free money. Term Life Insurance is ideal for young families with a limited budget where as much insurance as possible is required to secure the family's well being, or in business situations such as buy-sell agreements. Term Life Insurance is excellent for insuring a line of credit, mortgage, or loan. Several polies are available that are renewable and convertible up to various age limits.
Whole Life Insurance provides permanent coverage with level premiums and a guaranteed death benefit. It is perfect for people who think long term and wish to have a plan that is not subject to investment gains and losses. The policy also gains cash value over time, allowing for flexible cancellation options. Furthermore, though coverage is life-long, you do not have to pay premiums for life. You can purchase the insurance in a predefined number of payments: the shorter the payment period, the larger the discount.
Universal Life Insurance is permanent insurance with the added feature of having a tax- sheltered investment account built into the plan. Premiums are funded by the investment account, which accrues interest based on a portfolio of managed investments. Universal Life is a powerful financial tool in estate preservation, leveraging, buy-sell agreements, charitable giving, and pension maximization. The tax-sheltered status of its investment component can also allow it to help pay for itself.