There are many types of life insurance available to protect you and your family members. We can discuss the various types of life insurance with you and help you determine which plan bests fits your goals and overall investment strategy.
Some of the types of insurance available are:
Term life insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that "term." This can be used to:
Whole life insurance helps your family prepare for the unexpected. This type of insurance builds tax-deferred cash value you can use for a family's loss of income, mortgage costs, or educational needs — or to leave a legacy for the next generation. Some policies offer level premiums and life insurance protection for as long as you live, provided that premiums are paid as required to keep the policy in force.
Universal life insurance (often shortened to UL) is a type of permanent life insurance. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate. When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an "Indexed Universal Life" contract. These types of policies offer the advantage of guaranteed level premiums throughout the insured's lifetime at substantially lower premium cost than an equivalent whole life policy. This not only allows for easy comparison of costs between carriers, but also works well in irrevocable life insurance trusts (ILIT's) since cash is of no consequence.