Choosing the Right Type of Life Insurance

  • Provides potential lifetime coverage with flexible premiums and potential cash value growth through investment options.
  • Flexible premiums and death benefit: Like universal life insurance, VUL policies allow you to adjust your premium payments and death benefit (within certain limits), offering flexibility as your financial situation changes.
  • Investment options: Instead of earning a fixed or indexed interest rate, the policy’s cash value is invested in a selection of professionally managed investment options (called sub-accounts), similar to mutual funds. This offers the opportunity for greater growth—but also introduces more risk, as cash value and death benefit can fluctuate based on investment performance.
  • Cash value access: You can access the policy’s cash value through loans or withdrawals, subject to policy terms. However, poor investment performance could impact the policy’s ability to sustain itself if not managed carefully.
  • Important considerations: VUL policies offer flexibility and growth potential but require active management. Ongoing investment performance and proper funding are essential to maintaining coverage and maximizing policy benefits over time.

Universal and Indexed Universal Life

  • Provides coverage during the insured’s lifetime or age 121 with flexible premiums that offer the ability to guarantee the death benefit depending on the policy.
  • Premiums may be guaranteed for the life of the policy when utilizing a no-lapse guarantee feature.
  • Cash value accumulation: the opportunity for cash value accumulation over time. The cash value grows based on the performance of a selected market index.

Term Insurance

  • Provides affordable and basic protection for temporary financial needs. Offers peace of mind for a period-of-time without the higher premiums of permanent insurance coverage.
  • Conversion options allow you to convert all or a portion of the policy into a permanent life insurance policy without undergoing a medical exam. This becomes beneficial in the event your insurance needs change over time.

Choosing the right type of life insurance involves considering several factors that are specific to your personal circumstance, financial goals, and the specific benefits of each type of insurance. Steps to consider when purchasing life insurance:

  • Coverage amount
  • Duration of coverage and purpose
  • Type of coverage
  • Evaluate your budget.

Types of Life Insurance:

Whole Life Insurance

  • Provides coverage during the insured’s lifetime or age 121 with guaranteed level premiums until the age of 100. Coverage can’t be terminated or changed if the premiums are being paid.
  • Cash value accumulation: A portion of the premium payments goes towards building cash value within the policy, which grows over time on a tax-deferred basis. The cash value can be accessed through policy loans or withdrawals for various purposes, such as supplementing retirement income, paying for emergencies, or funding large expenses.
  • Dividend potential: Some whole-life policies offer a dividend to policyholders based on the company’s financial performance. The dividend may be used to increase the cash value, purchase additional coverage, receive as cash, or reduce the annual premium.

Variable Universal Life Insurance (VUL)

    • Provides potential lifetime coverage with flexible premiums and potential cash value growth through investment options.

    • Flexible premiums and death benefit: Like universal life insurance, VUL policies allow you to adjust your premium payments and death benefit (within certain limits), offering flexibility as your financial situation changes.

    • Investment options: Instead of earning a fixed or indexed interest rate, the policy’s cash value is invested in a selection of professionally managed investment options (called sub-accounts), similar to mutual funds. This offers the opportunity for greater growth—but also introduces more risk, as cash value and death benefit can fluctuate based on investment performance.

    • Cash value access: You can access the policy’s cash value through loans or withdrawals, subject to policy terms. However, poor investment performance could impact the policy’s ability to sustain itself if not managed carefully.

  • Important considerations: VUL policies offer flexibility and growth potential but require active management. Ongoing investment performance and proper funding are essential to maintaining coverage and maximizing policy benefits over time.

Universal and Indexed Universal Life

  • Provides coverage during the insured’s lifetime or age 121 with flexible premiums that offer the ability to guarantee the death benefit depending on the policy.
  • Premiums may be guaranteed for the life of the policy when utilizing a no-lapse guarantee feature.
  • Cash value accumulation: the opportunity for cash value accumulation over time. The cash value grows based on the performance of a selected market index.

Term Insurance

  • Provides affordable and basic protection for temporary financial needs. Offers peace of mind for a period-of-time without the higher premiums of permanent insurance coverage.
  • Conversion options allow you to convert all or a portion of the policy into a permanent life insurance policy without undergoing a medical exam. This becomes beneficial in the event your insurance needs change over time.

To learn more about the best type of life insurance for you, click on the link to meet with us.