Term Life is only effective for a temporary period of time, as designated in the policy. Term policies only pay out a death benefit if the insured dies during the policy term.
Term policies strictly provide life insurance protection (a death benefit) and do not accrue cash value, such as a Whole-Life Policy.
- Provides the largest amount of coverage for the least amount of premium.
- Most appropriate for a person wanting to insure a short-term or long-term debt, such as a car loan or mortgage, respectively.
- Appropriate for young families or young professionals who require a large amount of coverage, but cannot afford the larger premiums of permanent insurance until later on when their financials are more established. Yet, still securing uncertainty.
- At the end of the term your death benefit will end
- If you renew your POLICY the rate may change because of age and any health conditions .
- May be more difficult to qualify
- No cash value
How much coverage do I need?
A normal guideline is to get a coverage amount equal to 5-10 times your salary. But it’s not a one-size-fits- all answer, we’ll help you figure out the right amount for your situation.
Are you interested in finding out more about Term Life Insurance? Please complete the form below and we will contact you within 24 hours to discuss your needs.
Whole Life Insurance
Whole Life Insurance (WL) is considered permanent insurance policies that are effective for the entire life of the insured or up to the age 95 to 100. Whole Life Insurance Policies have cash value attached to the policy. WL policies provide living and death benefits.
WL insurance may be used as a cash accumulation mechanism to builds cash value. This is considered LIVING BENEFITS.
Common reasons for accumulating cash:
- Funding a college education
- Saving for retirement
- Purchasing a home
Can I borrow money towards the Cash Value of my WL policy?
Yes, you can borrow against the policy cash value at any time, up to the amount of the cash value. However, the amount of the policy loan plus interest is deducted from the policy’s death benefit if not paid back prior to the insured’s death. Permanent policies have a nonforfeiture value, which means the policyowner is guaranteed and fully entitled to the accumulated cash value. Policyowners may withdraw the cash value in part or in whole. This is the great benefit of a whole life policy.