Life Insurance


When we talk about life insurance, we’re usually talking about one of three types of policies:

Universal life insurance:

A flexible premium life insurance policy that you can structure to meet your individual needs. Universal life policyowners can change or vary what they pay in premiums, paying more one month and less the next as their income fluctuates, as long as they pay enough, or there are sufficient policy values to cover the monthly charges that keep the life insurance policy in effect. For convenience, most life insurance policyowners choose to pay a planned premium on a regular basis.

Many universal life insurance policies offer death benefits options, such as death benefits that increase every year or the ability to reduce the amount of death benefit in the future if needs change.

For example: if you need additional life insurance during childrearing years, you can structure the death benefit to remain at a certain level for say 20 or 25 years. At the end of that period, you can reduce the death benefit to better fit your needs.

Term life insurance:

A policy that has a level premium for a specific period of time. At the end of the period or time, the coverage for life insurance can be continued at a premium that increases annually with age.

For example, if you were to buy a 10-year term life insurance policy, the premium would be guaranteed not to increase for those 10 years. Then, if you still wanted the coverage, your premiums would begin increasing.

On average, term life insurance policies are sold for initial periods between 5 and 30 years. While traditionally the least expensive life insurance on the market, it is possible to buy universal life insurance with more flexible benefits at similar cost.

Whole life insurance:

A policy that provides a guaranteed death benefit and guaranteed cash value for a guaranteed premium.

Some whole life policies pay dividends that can be taken as cash or used to purchase additional life insurance or reduce future premiums.