Life Insurance

There are many types of life insurance to fit individual needs and circumstances. The following are some of the basic types of life insurance available:

• Term Insurance
• Term insurance is the simplest form of insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.
• Whole Life Insurance
• Whole life insurance is similar to term life insurance, but you purchase the policy to cover your "whole life" not just a set period. Premiums remain level throughout the life of the policy, and the insurance company invests at least a portion of your premiums.
• Universal Life Insurance
• With universal life insurance, you decide how much you want to put in over and above a minimum premium. The company chooses the investment vehicle, which is generally restricted to bonds and mortgages. The investment and the returns go into a cash-value account, which you can use against premiums or allow to build.
• Variable Life
• With a variable policy, there is usually a wider selection of investment products, including stock funds. As with a universal policy, returns on investments can offset the cost of premiums or build in the account. And depending on the type of policy, the beneficiaries will either receive the face value of the policy or the face value plus all or part of the cash account.