Life Insurance
Term Life
Term Life Insurance is generally the least expensive type of life insurance. The covered client enters a contract with a life insurance company for a 10, 15, 20, 25, or 30 year period of time. The client pays a premium for a specific period of time (term) in exchange for a death benefit which will be paid to the client’s beneficiary should death occur during the term period of time. Term Life Insurance is considered “temporary” life insurance. Once the term period expires, the covered client can either renew it for another term, allow it to expire, or convert the term policy to a permanent life insurance plan.
Universal Life (UL)
Universal Life Insurance is a “permanent” form of life insurance which provides life insurance for a longer period than Term Life Insurance. The covered client enters a contract with a life insurance company by paying a premium in exchange for a death benefit which pays out should the covered client die while the policy is active. A portion of each paid premium covers two (2) areas; 1) the cost of the life insurance and 2) cash value accumulation. The cash value earns a fixed/stated interest rate and can is accessed by the policyowner through cash withdrawals or loans.
Indexed Universal Life
Indexed Universal Life is a “permanent” form of life insurance which provides life insurance for a longer period than Term Life Insurance. The covered client enters a contract with a life insurance company by paying a premium in exchange for a death benefit which pays out should the covered client die while the policy is active. A portion of each paid premium covers two (2) areas; 1) the cost of the life insurance and 2) cash value accumulation. Unlike the Universal Life policy where cash value earns a fixed/stated interest rate, the Indexed Universal Life cash value grows based on the performance of a stock market indexes, e.g. S&P 400, S&P 500, NASDAQ 100, etc., providing a significantly higher cash value earnings potential, without investment risks. Cash value is accessed by the policyowner through cash withdrawals or loans.
Whole Life Insurance
Whole Life Insurance is permanent insurance guaranteed to remain in force for the covered client’s entire or whole life/entire lifetime. The covered client enters a contract with a life insurance company by paying a stated premium in exchange for a death benefit which pays out should the covered client die while the policy is active. A portion of each paid premium covers two (2) areas; 1) the cost of the life insurance and 2) no risk fixed interest rate cash value accumulation. With many Whole Life Insurance policies, the cash value will equal the death benefit by Age 100. Cash value is accessed by the policyowner through cash withdrawals or loans.