Life Insurance 101

 

Term - Coverage for a specified amount of time. The amount of coverage stays the same however, the premiums increase and the policy has no cash value at all. Some term life insurance policies can be renewed or even converted to a whole life or permanent policy.

Whole Life - The policy has a constant or level premium and the amount of coverage also stays the same. These policies have a cash value and the amount of the cash value is determined by the performance of the insurance company's asset account portfolio. This is the most recommended coverage for long term obligations.

Single Premium Whole Life - Premium payment is made in one lump sum, policy has cash value and the coverage stays the same. These policies produce excellent returns and are often used to pay estate taxes.

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