What type of Life Insurasnce should I buy ?
Term Life Insurance (Temporary) - the most for the least, and generally least expensive form of life insurance for people under age 50. Term Life Insurance provides for life insurance coverage for a specified term of years for a specified premium.
Declining Term Life Insurance - Variation on term insurance, often used as mortgage insurance since it can be written to match the amortization of your mortgage principal. While the premium stays constant over the term, the face value steadily declines. Once the mortgage is paid off, the insurance is no longer needed and the policy expires. Unlike many other policies, term insurance has no cash value.
Whole Life Insurance - Combines permanent protection with a savings component. As long as you continue to pay the premiums, you are able to lock in coverage at a level premium rate, with some accruing as cash value.
Universal Life Insurance - Similar to whole life with the added benefit of potential earnings on the savings component. Universal life policies are also flexible in regard to premiums and face value. Premiums can be increased, decreased or deferred, and cash values can be withdrawn. You may also have the option to change face values.
Variable Life Insurance - Offers fixed premiums and control over the policy’s cash value. The cash value is invested in a choice of stock, bond, or money market funding options. Cash values and death benefits can fluctuate based on the performance of the investment choices. Capital gains and other investment earnings accrue tax deferred as long as the funds remain invested in the insurance contract.
Universal Variable Life Insurance - The most aggressive type of policy. Like variable life, you decide the investment in mutual funds, though there are no guarantees on these policies beyond the original face value death benefit.
With so many LIFE INSURANCE options to choose from you can see why we get asked :