Saving You Money For Life

There are several types of life insurance available. So, which one is best for you? That depends.  Let’s review what life insurance is and what it is designed to do.  The most basic feature of a life insurance policy is the death benefit: the lump-sum payment your beneficiaries would receive if you die.  It’s the core reason to own life insurance – but not the only one. Some types of life insurance offer other features that might play an important role in your financial game plan, such as the ability to accumulate cash value that grows over time.

Term life insurance is, by definition, temporary insurance. Each year, a premium is paid to cover the risk of death during that year. Term life insurance has no cash value. The only way to collect anything is to die during before the term life insurance expires. If death occurs, the life insurance beneficiary generally collects the death benefit of the life insurance policy, free of income tax.

A permanent life insurance policy is a policy that provides life insurance coverage throughout the insured’s lifetime – the policy never ends as long as the premiums are paid.  In addition, a permanent life insurance policy provides a savings element that builds cash value.

Posted in Uncategorized | | No Comments »