Life insurance is important in many situations. Traditionally, life insurance is used for death benefits and taking care of loved ones when you are gone. However, life insurance opens the door to many other possibilities.
Ultimately, everyone either loves someone, owes someone, or both. Life insurance provides protection for your loved ones when you pass away. Life insurance is also used to protect business buy outs, mortgages, and more.
A tremendous number of people do not have any form of life insurance. In many cases, it is better to have something. Even if it is a smaller term policy, at least you are being responsible and proactive. All too often we hear stories about someone who continued to put off life insurance only to have something happen and it be too late.
Term Life
Term insurance is a type of insurance policy that provides coverage for a certain period of time or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active, or in force, a death benefit will be paid.
Universal Life
Universal life insurance is permanent life insurance with an investment savings element and low premiums similar to term life insurance. Most universal life insurance policies contain a flexible premium option. However, some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums). A universal life insurance option provides more flexibility than whole life insurance. Policyholders have the flexibility to adjust their premiums and death benefits. Universal life insurance premiums consist of two components: a cost of insurance (COI) amount, and a saving component, known as the cash value.
Indexed Universal
Life Indexed Universal Life allows the owner to allocate cash value amounts to either a fixed account or an equity index account. Policies offer a variety of well-known indexes such as the S&P 500 or the Nasdaq 100. IUL policies are more volatile than fixed ULs, but less risky than variable universal life policies because no money is actually invested in equity positions.
Whole Life
Whole life insurance provides coverage for the life of the insured. In addition to providing a death benefit, whole life also contains a savings component where cash value may accumulate. These policies are also known as permanent or traditional life insurance.
