Two Basic Types of Life Insurance
Whole Life Insurance is a permanent insurance that accumulates cash value through the years. It combines life coverage and a savings fund. The policy that pays the beneficiaries a specified, fixed amount upon death and part of the premium goes toward building cash value investment. It can be used as a tax-sheltered investment or be passed on to the heirs of the policy holder. Other types of cash value insurance also include variable life and universal life insurance.
Term Insurance provides protection and coverage for a specified number of years as stated in the insurance policy. Once the Term Insurance expires, the policy holder has the option to renew coverage or end it. Unlike Cash Value Life Insurance, it does not earn interest or accumulate savings over time. It is a less expensive option to Cash Value Life Insurance but nonetheless offers you peace of mind when it comes to the financial security of your family. Contact us to discuss your options.