Term insurance will pay a death benefit during a specified term period between 10-30 years.
Universal Life is a permanent coverage that stays in force for the life of the insured.
Whole life provides permanent coverage with the addition of cash value savings component.
You Have Three Main Types of Life Insurance to Choose From
There are actually well over 50 different types of life insurance on the market today. These policy designs will breakdown into 3 main types of life insurance. These three main types consist of temporary life insurance and permanent life insurance.
#1. The most popular plan design today is Term life insurance. These policies will have a specific time period beginning with annual renewable Term and then going as long as 4o years. Term life insurance is by far the most cost effective way to go. Just keep in mind that Term insurance is temporary and will terminate at a specific point in time designated in the policy. If you purchase a Term policy, make sure you choose the best term period for your needs.
#2. Another excellent choice is Universal life insurance which is one of the permanent versions. Universal Life will last the rest of your life and never leave you with a gap in coverage like Term life insurance can. These plan designs are approximately three times more expensive than Term but their eventually will be a death benefit paid out.
#3. Last but not least is the well known Whole Life insurance policy. Whole Life today is not very popular due to its high price tag. Whole Life is a permanent form of life insurance just like Universal Life. The big difference is that Whole Life has a large cash build-up that is actually based on a predetermined interest rate built into the policy.
For more information on these three types of life insurance
Click on the "Learn More" buttons on the three respective icons above where each one of the blog posts will go into detail for each plan design. We urge you to call us with any questions you may have.