Life Insurance

 There are two types of life insurance; term and permanent. Term insurance is temporary and for a short “term.” Permanent insurance is lifetime coverage and can provide for a long term need, estate and tax issues, legacy issues and can be used as an asset class.

Term Insurance

Term insurance is temporary in nature and has no cash value. This is sometimes referred to as rented insurance. Rates increase every ten or twenty years (the “term”), eventually becoming prohibitively expensive and policies expire with no cash value.

Permanent Insurance

There are two types of permanent insurance; universal life and whole life.

Universal life 

Universal life insurance offers a level death benefit. Similar to a mortgage on your home, you can pay the policy off over a period of time or you can pay the premium for life. Traditionally this type of policy is for a pure insurance need.

Whole life insurance

A whole life insurance policy is an asset accumulation, estate, and retirement planning vehicle. It is designed to enhance the cash value in a long-term dividend interest rate earning asset class while providing guaranteed cash value and permanent life insurance.

Universal and whole life plans are well suited for tax and estate planning purposes.