Types of Life Insurance

In the event of a tragedy, Life Insurance may be one of the most important purchases you’ll ever make!

Life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children’s education, protect your spouse’s retirement plans, save your house and much more.

Term life insurance provides a low cost way to get maximum insurance protection for a set period of time at a fixed cost. A term life insurance policy covers the insured for a specified period of 5, 10, 20 and 30 years. The premium rate you pay for term life insurance is guaranteed to remain the same low amount for the duration of the term of coverage selected.

Whole life insurance is the oldest form of life insurance policy available today.  It is exactly what the name implies – it is insurance that lasts your whole life.   In most cases premiums are paid throughout the length of the policy (typically to age 100 or 121), although policies with shorter pay periods are available.  

Like other types of policies, it will pay the death benefit to your beneficiaries upon your death.

Whole life insurance offers the most significant guarantees of rates and values than any other life insurance policy.  Due to these guarantees, whole life presents a very good option for those who have needs for permanent insurance.

 Indexed univeral life insurance is a lot like universal life insurance, however it does have a couple of wrinkles not found in traditional universal insurance policies. 

Universal life insurance comes in many different forms, from your basic fixed-rate policy to variable models that allow the policy holder to select various equity accounts in which they can invest. An indexed universal life insurance policy gives the policy holder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. 

Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100. 

 Return of premium life insurance is a relatively new type of term life insurance policy that provides both death benefit protection and a return of premium insurance feature. Return of premium life insurance is aimed right at one of the greatest objections to term life: “I am probably not going to die, and my money will have been wasted.”

Here’s how it works: If you keep your policy for the term period, at the end of that time whether 15, 20 or 30 years, the life insurance company that issued the insurance with the return of premium policy, returns the entire premium that you paid for the insurance, Tax Free.

While a traditional life insurance policy can provide funeral and burial coverage, final expense insurance policies have a lower face value than standard life insurance plans. You can purchase a final expense insurance policy with a coverage limit of several thousand dollars, enough to pay for a basic funeral service, casket, burial and cemetery plot.

Term or whole life coverage generally begins at $10,000, an amount that may exceed your needs. 

Final expense insurance gives you just the right amount of coverage to arrange the funeral that you want.