Term Life Insurance
Temporary Insurance. Level premium normally good for a certain term 5, 10, 20 and 30 year period. After term is up policy can be renewed or continued to a certain age but the amount of premium usually increases by a great amount.Initially Affordable
Conversion – May convert your Term Policy for a Permanent Life Insurance Policy
Short term goals
Permanent Life Insurance Provides death benefit for as long as you liveLong Term goals
Premium generally level
Earns cash value and may be eligible for dividends.
Growth in cash values is tax deferred under current federal income tax law. You may also borrow against the cash value as a loan but can reduce the death benefit and cash surrender value.Different types of Permanent life Insurance
Whole Life- Face amount (death benefit) and premium are fixed at the time you purchase insurance and remains the same thru out the lifetime of the policy.Universal Life- Cash value is based on interest rate
Variable Life/ Variable Universal Life- cash value is based on the performance of the underlying investment options you choose to invest in which fluctuate with market conditions. Cash value is not guranteed.
Which is best for you? Depending on your situation and your needs sometimes a combination of Term life and Permanent Life would be a good solution. By contacting an insurance agent they can give you the advice and help you with your decision.