Term life insurance provides coverage for a specific period of time. A term life insurance policy issues a payment to a beneficiary only if the policyholder dies while the policy is in effect and if they have paid their premiums on time and in full.

Term life insurance policies are commonly contracted for a term of 10 to 30 years, although shorter or longer terms can be available with some policies. If the policyholder outlives the length of the contract, the policy expires and no payout is made.

Certain term life insurance policies may be converted to a whole life insurance policy at the end of the term. Some term life insurance policy may be able to be renewed at the end of the term.

Unlike permanent life insurance, term life insurance policies do not accrue a cash value. For this reason — and the fact that term policies expire — term life insurance rates are generally more affordable than certain permanent life insurance policies.

The earlier you purchase a term life insurance policy and the healthier you are, the more affordable the premiums will likely be.

Who should purchase term life insurance? 

• Parents of young children
• People with co-signed debt
• Homeowners
• Divorced Parents
• Stay-at-home parents
• Primary household income sources

Is term life insurance good for you?

• Term life insurance costs less than other types of insurance such as permanent life insurance.
• Offers flexibility and the ability to customize the policy length and the coverage amount according to you and your family's needs.
• Straightforward and easy to understand.

Permanent life insurance provides lifelong protection. As long as the policy premiums are paid on time, your designated beneficiary will receive a payout after you pass away.

Permanent life insurance policies can accumulate a cash value that can be withdrawn, borrowed against or even used to pay the policy premiums. Sometimes a permanent life insurance policy may even pay out dividends.

Types of Permanent Life Insurance: 

• Whole Life Insurance
• Universal Life Insurance
• Variable Life Insurance

Who should purchase Permanent Life Insurance? 

• You have a large estate
• You wish to leave a charitable donation
• You're a business owner
• You have a special needs child
• You want to leave behind an inheritance but may not have much to give
• You come from a family with health issues

The Benefits of Permanent Life Insurance

• Guaranteed Payout
• Ability to access potential cash savings

Whole life insurance is the most common type of permanent life insurance. Like other types of permanent life insurance , whole life insurance provides coverage for as long as you live, as long as you remain up to date on paying your policy premiums.

Whole life insurance policies feature fixed premiums for the life of the policy. With plan premiums that won’t increase, you can experience improved transparency and predictability with your long-term life insurance costs.

Whole life insurance policies can also accrue cash value over time. Once your policy has built up enough cash value, you can typically withdraw it or borrow against it like a loan.*

Loans or withdrawals may affect your policy’s cash value and the death benefits tied to the policy, so make sure you understand the terms associated with your whole life insurance policy.

Unlike variable life insurance, the cash value of a whole life insurance policy is not dependent upon the market. In fact, most whole life insurance policies grow a cash value at a guaranteed minimum rate.

In comparison to term life insurance, whole life insurance will remain in effect for the rest of your life,  because of this, whole life insurance will have higher premiums.

Who should purchase Whole Life Insurance? 

• High income earners (Maxed out 401(k) or IRA contributions)
• People who wish to have an inheritance to a beneficiarty and want the predictablility that premiums offer

Is home life insurance good for you? 

• Permanent life insurance
• Cash value accessibility 
• Fixed policy premiums

Universal life insurance is one type of permanent life insurance. Like all types of permanent life insurance policies, a universal life insurance remains in effect until you pass away, as long as you pay your policy premiums on time.

Similar to whole life insurance, a universal life insurance policy includes a cash value component that accumulates interest and may be accessed through withdrawals or loans.1 You can also use the cash value to pay your monthly policy premiums.

A universal life insurance policy offers the flexibility to make changes to your coverage over time. You can adjust your policy premiums and death benefits as your needs and budget change over time. Keep in mind that an adjustment in death benefit could require additional underwriting.

Who should buy Universal Life Insurance? 

• People who like control over their coverage
• People who need the ability to adjust their coverage to their changing needs

Types of Universal Life Insurance

Option A:

Provides the face amount of the policy when the insured dies. The contract can still accumulate cash value, but if the policyholder dies, the beneficiary receives only the death benefit, not the cash value.

Option B:

Provides the beneficiary with the death benefit plus any cash value. Premiums are typically higher if Option B is elected. The election is made when the policy is issued.

Univesal life insurance allows you to decide a premium amont that most suits your financial circumstances, but may need additional premium payments to help keep the policy enforced.