Life inusrance comes in two basic types: term and permanent. Once you determine if your financial liabilities, future obigations and any charitable intent are temporal or permanent, you can select the right type of life inusrance. If temporal, then term life insurance. If permanent, then participating whole life or guranteed universal life.
There are many choices of life insurance available to you. The main stream life insurance products are term life, universal life, variable life and whole life. Each one has a specific purpose.
Term life insurance is meant to coverage a specific period of time. The common terms are 1-5-10-15-20-25-30-35 years. This means the rate or premium you purchase is guaranteed level for that period of time regardless of change in health, life style or occupation. Term life is commonly used for younger people starting out in life, covering a large debt, life a mortgage on a home or business debt, or covering for a young child's education. term life insurance allows for the largest face amount for the smallest premium payments.
Universal life and variable life are permanent life insurance solutions that build cash value. Typically the premiums are more expensive and the face amounts are less because part of the premium is going into a cash value fund that can be invested with numerous options. The cash value can later be used for retirement, college funds, critical or chronic illness or even to purchase a large asset like a home. The universal and variable options are typically more aggressive with the cash value funds.
The last option, whole life insurance, is very similar to the previous universal life insurance options. However, the cash value funds are typically a fixed percentage of growth. Whole life as it's name suggests is primarily meant to cover you for your entire life.
I recommend using an experienced independent life insurance broker with numerous carriers to shop the market and find you the best product at the best price for your unique situation. Good luck.
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Term life insurance is meant to coverage a specific period of time. The common terms are 1-5-10-15-20-25-30-35 years. This means the rate or premium you purchase is guaranteed level for that period of time regardless of change in health, life style or occupation. Term life is commonly used for younger people starting out in life, covering a large debt, life a mortgage on a home or business debt, or covering for a young child's education. term life insurance allows for the largest face amount for the smallest premium payments.
Universal life and variable life are permanent life insurance solutions that build cash value. Typically the premiums are more expensive and the face amounts are less because part of the premium is going into a cash value fund that can be invested with numerous options. The cash value can later be used for retirement, college funds, critical or chronic illness or even to purchase a large asset like a home. The universal and variable options are typically more aggressive with the cash value funds.
The last option, whole life insurance, is very similar to the previous universal life insurance options. However, the cash value funds are typically a fixed percentage of growth. Whole life as it's name suggests is primarily meant to cover you for your entire life.
I recommend using an experienced independent life insurance broker with numerous carriers to shop the market and find you the best product at the best price for your unique situation. Good luck.