Term Life Insurance

Term Life Insurance is the equivalent to renting a house rather than buying it, the term is a fixed, temporary one that covers the insured over that particular period of time – typically 10, 15, 20, or 30 years. During that time, premiums are guaranteed not to increase. Once the term is over, customers may continue to pay for an increased rate. If in the event of a tragic event resulting in death of the insured, the beneficiaries of the policy will receive a cash death benefit. This is usually a more affordable option for families to ensure that the family is covered in the case of unexpected death, creating a safety net for the family.

Permanent Life Insurance

Permanent Life Insurance differs from term in two major ways. First, the policy is for the entirety of the insured’s life. Second, a portion of the money paid into the policy is invested into an account where customers can access the cash later in life – a financial investment in addition to an insurance policy.

There are several types of permanent life insurance, each with their unique advantages:

Whole Life Insurance – the simplest form of permanent life insurance. You’ll pay the same premium for the rest of your life.

Universal Life Insurance – gives you more flexibility than Whole Life. Once your policy has built up cash value, you can decide when and how much you want to pay. And if your needs change, you can increase or decrease your death benefit amount within certain limits without buying a new policy (though you might need to get a medical exam).

Variable Universal Life Insurance – gives you the option to invest your premiums while your death benefit remains safe.

Equity-Indexed Universal Life Insurance – your cash value will be linked to changes in a widely recognized market index and your policy will decide in advance what the maximum and minimum growth rates are.