What kind of Life insurance fits my needs?
In a nutshell, Life insurance comes in two forms: Term insurance and Permanent insurance.
Term vs. Permanent Insurance
Term insurance provides coverage for a set period of time and is usually less expensive. It provides the greatest amount of coverage for the lowest initial cost. You may find that a Term policy is a good choice if you have temporary needs or if your funds are limited.
Permanent insurance, which includes Whole Life and Universal Life, may be the right fit for you if you want to cover a long-term need such as income for a spouse, legacy planning for children or end of life expenses. Permanent insurance may initially cost more, but may accumulate cash value.
It’s difficult to say exactly which kind of Life insurance is better, because the type of coverage that’s right for you all depends on your individual circumstances and financial goals. A combination of Term and Permanent insurance may be the right solution.
Term Life insurance
- Affordable coverage.
- Temporary coverage for your personal or business needs.
- Coverage may be renewable4 or you may also convert to permanent coverage (subject to contractual requirement).
Whole Life insurance
- Whole Life may be good for young adults just beginning an insurance program, or for families needing protection yet also wanting to accumulate funds for the future.
- The cash value of a whole life policy is guaranteed.
Universal Life insurance
- Flexible coverage
- Options for timing and method of premium payment
- Tailor coverage to your personal needs
Premiums for Term policies are generally subject to change after the initial term period.