These policies are designed to provide protection for a Life time. They also have a cash value that accompanies the policy’s and grows in value as time passes. These can be another arrow in your financial quiver and can be used to address specific concerns such as supplementing retirement, Long Term Care Protection, Tax Free strategies, Legacy Planning (Check out Life Insurance Strategies for more info.) Often, a combination of term and permanent insurance is the right solution
Term life insurance is a type of life insurance that helps protect you for a period of time or a term. Terms typically last anywhere from 5 to 30 years but can last longer in some cases. The length of your term is up to you, so you can get life insurance coverage for as few or as many years as you need. During the time you are covered by your policy, your payment amounts don’t change and you are insured for the amount that you purchase.
Whole life insurance is a type of permanent life insurance, which stays in effect for as long as you pay the premiums. (So potentially your whole life.) This means you never have to worry about uninsurability or losing your safety net as you get older.
Besides whole, other types of permanent life insurance include variable, universal and variable universal.
Whole life is more complicated than term overall, but one definition you need to know is the cash value. When you pay your premium on a permanent policy it’s split between the death benefit and the cash value — essentially an investment product coupled with the insurance policy.
Universal life insurance (UL) comes in a lot of different flavors, from fixed-rate models to variable ones, where you select various equity accounts to invest in. Indexed universal life (IUL) 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.
5002 Example Street
Los Angeles, CA 90034
Available 8:00am - 4:00pm