Life Insurance

Although there are many types of life insurance policies, nearly all are variations of two basic types—term and permanent.  A third type, known as “universal” life, is a combination of term, permanent and various investment options.

● Term insurance is exclusively death coverage. The policies are written for a specific length of time. Some common terms are ten year, twenty year and thirty year, although other terms may be available. If the insured dies during the term of the policy, the death benefit is paid to the beneficiaries. If at the end of the term the insured is still alive, the coverage ends.

● A “permanent” insurance policy (often referred to as “whole life”) never terminates as long as the premiums are paid. It also builds cash values in the policy that can provide valuable “living” benefits in addition to the death benefit.