There are several different types of life insurance products available. The most common are:
Term Life Insurance
Term Life provides insurance protection for a specified period of time, generally 10, 15, 20 or 30 years. This product is ideal for short-term needs like covering the cost for college until the kids are out of school or covering the cost to buy out a business partner. It is the least expensive of all the life products and many plans have the ability to convert to a permanent policy in the future.
Whole Life Insurance
Whole Life is a form of permanent life insurance that is designed to remain in effect for the insured individual's entire life. This was the first permanent product created by the life industry and has since been replaced by the more flexible and cost effective Universal Life Insurance policy.
Universal Life Insurance
Universal life (UL) is a permanent life insurance product that is designed to operate for the insured individual's entire life. This product calculates all of the costs to insure your life based on your life expectancy, averaging the premiums so that you pay the same level premium until you die. While Term life insurance only pays out if you die within the timeframe of the contract, UL is designed to pay out when you die, whenever that may be. This type of product is ideal for long-term needs like paying off the mortgage and providing replacement income. Since UL creates cash value it also has special advantages in saving for college and executive-deferred compensation.
Request a Quote
