– is a life insurance plan that provides temporary protection for a specified period of time. It will expire at an attained age (age 65) or after a
specific period of time (10-year term). Term insurance does not have a cash or loan value; it purely provides protection. Term insurance provides a greater
death benefit for the least outlay, when compared to a permanent policy.
Whole Life
– is a life insurance plan that is used for the permanent need of protection. The two most common uses are for family protection and estate conservation. The policy builds cash, loan, and nonforfeiture values over the
life of the policy, acting as an additional benefit to the policyowner during his/her life.
Universal Life
– is the most popular type of life insurance plan. It provides the most flexibility to the policyowner, who selects the face amount and the frequency of the premiums paid. The universal life policies are term life
insurance policies with a cash value side fund that earns interest at the current rate.
Annuities
– protect against out living an individual's retirement benefits. They are most often purchased by individuals, and may be used as a corporate pension plan. The accumulation period is predetermined, and there
are many benefit (pay-out) options.
Visit our
Understanding the Terminology of Life Insurance Plans