As a leading provider of life insurance, we understand that choosing the right type of coverage and payment option can be overwhelming. That's why we are committed to educating our customers about the different types of life insurance and their benefits, along with the payment options available.
Read more for a brief overview of the different types of life insurance coverage that may be available to you.
Term Life
Term Life Insurance: Term life insurance provides coverage for a specific term, typically 10, 15, 20, or 30 years. It offers a death benefit to the beneficiaries if the insured passes away during the term. Term life insurance is generally more affordable than other types of life insurance and is ideal for individuals who need coverage for a specific period, such as to protect their mortgage or provide financial support to their dependents during their working years.
Benefits:
Affordable premiums
Simple and straightforward coverage
Provides financial protection for a specific term
Option to convert to permanent life insurance in some cases
Payment Options:
Level Premiums: Premiums remain the same throughout the term.
Annual Renewable Term: Premiums increase annually but may be initially lower than level premiums.
Whole Life
Whole life insurance provides coverage for the entire lifetime of the insured. It offers a death benefit to the beneficiaries and also includes a cash value component that grows over time. Whole life insurance is a permanent form of coverage and is ideal for individuals who want lifelong protection and the opportunity to build cash value.
Benefits:
Lifetime coverage
Builds cash value over time
Provides a death benefit to beneficiaries
Option to borrow against the cash value
Payment Options:
Level Premiums: Premiums remain the same throughout the life of the policy.
Limited Payment: Premiums are paid for a specific period, such as 10, 15, or 20 years, after which the policy is fully paid up.
*There are two payment options available for whole life insurance. Each option affects the premium.
Universal Life
Universal life insurance provides flexible coverage and premium options. It combines a death benefit with a cash value component that can be invested in various investment options, allowing the policyholder to potentially earn returns on their policy. Universal life insurance is ideal for individuals who want flexibility in premium payments and investment options.
Benefits:
Flexible coverage and premium options
Cash value component with potential for investment growth
Option to adjust death benefit and premiums over time
Payment Options:
Flexible Premiums: Policyholders can adjust their premium payments within certain limits, based on their financial situation and investment performance.
Single Premium: A lump sum premium is paid upfront, and the policy remains in force without the need for further premium payments.
Indexed Universal Life
Indexed universal life insurance provides flexible coverage and premium options, along with the opportunity to earn returns based on the performance of a stock market index. It offers a death benefit to beneficiaries and a cash value component that can potentially grow based on market performance.
Benefits:
Flexible coverage and premium options
Cash value component with potential for indexed returns
Option to adjust the death benefit and premiums over time
Payment Options:
Flexible Premiums: Policyholders can adjust their premium payments within certain limits, based on their financial situation and market performance.
Single Premium: A lump sum premium is paid upfront, and the policy remains in force without the need for further premium payments.
*As a type of permanent life insurance, indexed universal life insurance works similarly to universal life policies, except in the way they build cash value. IUL cash value allows for growth based on a stock index (a set grouping of various stocks) instead of only through non-equity earned rates.
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Premiums are based on different factors and are not the same. Coverage may not be available for some individuals. You may still qualify for coverage with underlying health issues.
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