What is Life Insurance?    

Now when it comes to life insurance… there are essentially two types, Term Life  Insurance, and Permanent Life insurance.

Term Life

A type of Life insurance that is with you for a specific period of time, 10, 15, 20 years.

Usually more cost effective in early years but costs increase after the term expires

Great if more coverage is required to cover debts such as mortgages or student/business loans.

Universal Life (permanent)

Form of Permanent coverage, flexible premiums and death benefit amount.

Builds a cash value that can act as a savings account to access in the future or cover future policy premiums

Earns interest through designated rates set by the Life Insurance company.

Indexed Universal Life (permanent)

Universal Life coverage with flexible premiums and death benefit amount

Builds a cash value that can act as a savings account to access in the future or cover future policy premiums.

Earns interest based on market performance, such as the S&P500, without being directly invested (allowing you to participate and earn when the market does well, but not lose when it does poor)

Whole Life (permanent)

Permanent coverage for life, Fixed Premiums, Fixed face amount,

Builds cash value that can act as a savings account to access in the future.

Earns interest through guaranteed and non guaranteed rates or company dividends.

Also “not discussed here” under the permanent life insurance umbrella falls Variable Life insurance and Variable Universal Life Insurance. Due to its specific “securities” licensing required this product is not offered but for educational purposes is placed here.