Life Insurance

Life Insurance Products Offered

Whole Life - Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly due premium payments. It lasts for a policyholder's lifetime, as opposed to term insurance, which is for a specific amount of years. Whole life insurance is often purchased to cover funeral costs. These smaller Whole Life policies are commonly referred to as Final Expense insurance. The policy includes a savings portion, called the “cash value,” alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis. The savings component can be invested; additionally, the policyholder can access the cash while alive, by either withdrawing or borrowing against it, when needed. Growing cash value is an essential component of whole life insurance.

Term Life - Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active, or in force, a death benefit will be paid. Term insurance is initially much less expensive when compared to permanent life insurance. Unlike most types of permanent insurance, term insurance has no cash value. In other words, the only value is the guaranteed death benefit from the policy. Term insurance can have much higher death benefits than whole life insurance and is typically purchased for such things as paying off a mortgage, children's college tuition, or leaving a legacy behind for beneficiaries in case of death.

Universal Life - Universal life (UL) insurance is a form of permanent life insurance with an investment savings element plus low premiums. The price tag on universal life (UL) insurance is the minimum amount of a premium payment required to keep the policy. Beneficiaries only receive the death benefit. Unlike term life insurance, a UL insurance policy can accumulate cash value. A UL insurance option provides more flexibility than whole life insurance. Policyholders can adjust their premiums and death benefits. UL insurance premiums consist of two components: a cost of insurance (COI) amount and a saving component, known as the cash value.

Accidental Death - Accidental death insurance is usually a rider to a life insurance policy, but can also be written as a standalone policy. Similar to term insurance, it provides coverage for a certain period of time, or until a specific age, and does not typically build cash value. Unlike term insurance, it only covers the unintentional, or accidental, death (not from natural causes) of the insured. Due to the fact that natural death is not covered, most plans are considered guaranteed issue and do not require medical underwriting to be approved. Because of coverage limitations, prospective buyers should carefully read the terms of the policy. Because Accidental Death insurance is limited and generally covers unlikely events, it is supplemental life insurance and is not generally an acceptable substitute for other life insurance.

Comparison Chart