Term and Whole Life Insurance

Term Insurance provides what is known as pure death protection

-If the insured dies during this term, the policy pays the death benefit to the beneficiary -If the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the term -There is no cash value or other living benefit

Key characteristics of Whole Life Insurance

-cash value: the cash value, created by the accumulation of premium, is scheduled to equal the face amount of the policy when the insured reaches age 100 and is paid out to the policy on a regular basis and have a guaranteed interest rate. -living Benefits: the policy-owner can borrow against the cash value while the policy is in effect, or can receive the cash value when the policy is surrendered. The cash value also called non forfeiture value, does not usually accumulate until the third policy year and it grows tax deferred.

Whole Life Insurance

Permanent Life Insurance is a general term used to refer to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or until age 100) as long as the premium is paid. The most common type of permanent insurance is whole life.

Term Policies

Policies provides the greatest amount of coverage for the lowest premium, as compared to any other form of protection.

Term Life Insurance

Term Insurance is temporary protection because it only provides coverage for a specific period of time. It is also known as pure life insurance. Term policies provide for the greatest amount of coverage for the lowest premium as compared to any other form of protection. There is usually a maximum age above which coverage will not be offered or at which coverage cannot be renewed

Convertible Provision

Provides the policy owner with the right to convert the policy to a permanent insurance without evidence of insurability

Key characteristics of Whole Life Insurance

-Level premium: the premium for whole life policies is based on the issue age; therefore, it remains the same throughout the life of the policy -Death Benefit: The death benefit is guaranteed and also remains level for cash value: the cash value, created by the accumulation of premium, is scheduled to equal the face amount of the policy when the insured reaches age 100 and is paid out to the policy on a regular basis and have a guaranteed interest rate.