Life Insurance Policies

Term life insurance is temporary (10-30 year terms), does not build any cash value, and has a fixed rate up until the term is over. Term insurance has the option to renew at the end of the coverage period, but goes up in cost according to the insured's age and health. If the life insured dies during the term, the death benefit will be paid to the named beneficiaries. Term is typically a temporary solution as it provides a significant amount of coverage for a low cost and converting to whole life or universal life is highly suggested.

Whole life insurance provides permanent protection for life as long as premiums are paid. In addition to a guaranteed cash value you can access through a loan, the named beneficiaries are guaranteed to receive a death benefit. You should expect to pay a higher premium than you would for a term life policy, but your premiums remain the same throughout your lifetime.

Universal life insurance is a type of permanent life insurance that provides coverage for life, as long as premiums are paid. It's made up of two parts: a guaranteed death benefit, which is money left to your loved ones, and a cash value component. The cash value earnings grow tax-deferred, meaning no tax will be due until they are withdrawn. It's flexibility on your terms. Unlike term and whole life insurance, universal life provides an additional level of flexibility. It allows policy owners to modify the amount and frequency of premium payments as long as there is sufficient cash value in the policy to cover monthly deductions. When the insured dies, a death benefit is left to the named beneficiaries. In addition to the death benefit, universal life insurance also contains a cash value. The cash value grows tax-deferred until funds are withdrawn.