Types of Life Insurance

Key Features

Coverage for a specified period, typically ranging from 10 to 30 years.

Fixed premiums for the duration of the term.

Pays out a death benefit to beneficiaries if the insured passes away during the term.

Purpose

Term life insurance is designed for temporary needs and financial obligations, such as:

• Providing income replacement for dependents until they become financially independent.

• Covering outstanding debts like mortgages, loans, or college tuition payments.

• Supplementing employer-provided life insurance during working years.

Ideal for

Young families with children who need financial protection during their formative years.

Individuals with significant financial obligations, such as mortgage payments or student loans.

Business owners seeking affordable coverage to protect against the loss of a key employee or to secure business loans.

 Key Features

Whole life insurance offers permanent protection and serves various purposes, including

Fixed premiums throughout the life of the policy.

Includes a cash value component that accumulates over time.

Purpose

Whole life insurance offers permanent protection and serves various purposes, including:

• Providing lifelong financial security for dependents, regardless of age or health status.

• Building cash value that can be accessed for supplemental income, emergencies, or retirement planning.

• Estate planning to cover estate taxes, fund trusts, or equalize inheritances among beneficiaries.

Ideal for

Individuals seeking lifelong coverage and financial security for their loved ones.

Those interested in building cash value and accumulating tax-deferred savings over time.

Business owners using life insurance as a tool for succession planning or funding buy-sell agreements.

 Key Features

Flexible premiums and death benefits that can be adjusted to meet changing needs.

Ability to allocate premium payments between the cost of insurance and a cash value account.

Cash value accumulation at an indexed or variable interest rate linked to market indexes like the S&P 500.

Purpose

Universal life insurance offers flexibility and customization, serving various purposes such as:

• Tailoring coverage to adapt to changing financial circumstances, income levels, or retirement goals.

• Combining insurance protection with investment potential through the cash value component.

• Providing options for premium payments, including the ability to skip payments or adjust coverage amounts as needed.

Ideal for

Individuals seeking flexible coverage that can adapt to evolving financial circumstances.

High-income earners interested in tax-advantaged strategies for wealth accumulation and transfer.

Those looking to integrate insurance protection with investment opportunities and retirement planning.