Life Insurance

What type of life insurance is best for you depends on a variety of factors, including how long you want the policy to last and how much you want to pay.

Photo by Jude Beck

Photo by Jude Beck

LIFE INSURANCE 

Purchasing a life insurance policy is one of the most important factors for the long-term financial planning of both families and businesses. It’s also one of the least discussed.  

With so many options to choose from, it can be confusing and difficult to know which one is best for you. You’ll need to decide what you’d like the policy to accomplish, know how much you want to pay, and how long you want the policy to last. 

TERM LIFE INSURANCE

Term life insurance policies offer coverage for a specified length of time and are generally sold in lengths of 10, 15, 20, 25, and 30 years. 

Pros: Simple to understand and the least expensive way to purchase life insurance

Cons: If you outlive the term of your policy, purchasing a new policy could end up costing you more. There is no cash value component with term life insurance.

WHOLE LIFE INSURANCE

Whole life insurance is a type of permanent life insurance that remains in effect for the entirety of your life, as long as the premiums are paid on time. The premium amount stays the same throughout the policy’s entire length, and your death benefit is guaranteed. 

This type of life insurance policy also offers a “cash value” component, otherwise known as a savings plan. Each month, a small amount of your premium is put into a savings portion of your policy, which over time increases your policy’s cash value. With this policy, you may also have the option of withdrawing emergency funds or even borrowing against it.  

Pros: Coverage is guaranteed until death. Cash value growth with possible dividend options are available; however, dividends are never guaranteed. 

Cons: Higher premium payments. Non-flexible premiums.

UNIVERSAL LIFE INSURANCE

Universal life insurance is another form of permanent life insurance. More adaptable in structure than whole life insurance, this type of insurance policy has flexibility in its premium pricing. The premiums and guaranteed death benefits can all be readjusted as needed if the circumstances of the policyholder change. 

There are various types of universal life insurance policies, which include:

  • Traditional Universal Life Insurance 

  • Variable Universal Life Insurance 

  • Indexed Universal Life Insurance

  • Guaranteed Universal Life Insurance

The universal life insurance policy you choose will be specific and reflect your current circumstances.

Pros: More affordable than whole life insurance. Flexible premium options. Potential to accumulate cash within the policy.

Cons: The cash value options vary depending on which UL  policy you choose. As with most other policies, premium payments must be made on-time, or your risk forfeiting the policy and losing out on all previously made payments. 


Let’s find a policy that fits your needs. Schedule your free discovery call today!