Kinds of Life Insurance

Which policy should you choose? It depends on a lot of factors: your age, your budget, and your specific needs.  Below you will find information on the two types of Life Insurance.  Once you understand the types of Life Insurance, you will need to determine "How Much Life Insurance Do I Need?"

Term Life Insurance - Term life insurance covers you for a set period of time, or “term.” Term life insurance offers the cheapest premiums.

Permanent Life Insurance - Permanent life insurance covers you for your entire life. The premiums on permanent life will be higher than Term Life Insurance.

• Whole Life Insurance - Whole life insurance has “level premiums” — meaning the premiums do not increase as you get older. The cash value on a whole life insurance policy almost always increases in value the longer you have it. And as long as you keep paying the premiums, the eventual payout is guaranteed.

• Universal Life Insurance - Universal life is similar to whole life, but is more flexible. In a universal life policy, the benefit can be increased or reduced — in a whole life policy the benefit is set at the start of the policy. A universal life policy also has a flexible premium, ranging from a minimum payment to a higher payment that adds to the cash value of the policy. However, the payout on universal life isn’t guaranteed.