Types of Life Insurance

What is Term Life Insurance?

Term Life Insurance is the simplest and most affordable type of life insurance. It provides coverage for a specific period (term) and pays a death benefit if the insured passes away during that term.

Key Features

• Fixed premium rates for the duration of the term
• No cash value accumulation
• Lower initial premiums compared to permanent insurance
• Coverage periods typically range from 10 to 30 years
• Commission Structure: 30% first year, 4% renewal

Best For

• Young families with children
• Individuals with temporary financial obligations
• Those seeking maximum coverage at minimum cost
• People with specific financial goals (e.g., mortgage protection)

What is Whole Life Insurance?

Whole Life Insurance is a permanent life insurance policy that provides coverage for the insured's entire life, as long as premiums are paid. It includes a cash value component that grows over time.

Key Features

• Lifetime coverage
• Guaranteed cash value growth
• Fixed premium payments
• Dividend payments (with participating policies)
• Commission Structure: 50% first year, 6% renewal

Best For

• Long-term financial planning
• Estate planning
• Wealth transfer
• Individuals seeking guaranteed cash value growth

What is Universal Life Insurance?

Universal Life Insurance is a flexible permanent life insurance policy that combines death benefit protection with a cash value component. It offers adjustable premiums and death benefits.

Key Features

• Flexible premium payments
• Adjustable death benefits
• Cash value growth potential
• Interest-sensitive cash value
• Commission Structure: 45% first year, 5% renewal

Best For

• Individuals seeking flexibility in premium payments
• Those wanting to adjust coverage as needs change
• People interested in cash value growth potential
• Long-term financial planning with flexibility