Term Life Basics
Term Life Insurance provides a cost-effective solution for your temporary life insurance needs and gives you the flexibility to change your policy should your temporary needs turn into permanent goals.
Term Life Insurance is right for you if you want:
- An affordable way to get maximum coverage
- To cover specific financial responsibilities like a mortgage or college expenses
- To supplement your Permanent Life Insurance during periods when coverage needs are higher, such as family-growing, mortgage-paying years
Some things to consider about Term Life Insurance:
- There is no cash value accumulation
- Continuing your coverage after the initial level premium-paying term expires can be very expensive
Whole Life Insurance can be right for you if you want:
- Fixed premiums that will not increase
- A guaranteed death benefit payout
- Cash value that is guaranteed to grow each year - tax-deferred
- Dividends that can be used to increase the value of the policy
Some things to consider about Whole Life Insurance:
- Premiums are initially more costly than Term Life, but are guaranteed not to increase
- Dividends are not guaranteed
- Loans and withdrawals can reduce the death benefit payout
