Life Insurance
Life Insurance pays a benefit upon the death of the insured. There are 3 main types: Term, Whole, and Universal Life. Each has its own strengths and special uses. Select a type of insurance below for more information.
Term Life Insurance is life insurance for a set period of time. If the insured dies during this period, the beneficiary receives a lump sum of tax-free money. Term Insurance is ideal for young families with a limited budget where as much insurance as possible is required to secure the family's well being. It is also used in business situations such as buy-sell agreements, for mortgage coverage, or to fulfill other temporary needs.
Whole Life Insurance provides permanent coverage with level premiums and a guaranteed death benefit. It is perfect for people who think long term and whish to have plan that is not subject to investment gains or losses. The policy also gains cash value over time, allowing for flexible cancellation options. Furthermore, though coverage is life-long, you do not have to pay premiums for life. You can purchase the insurance in a predefined number of payments: the shorter the payment period, the large the discount.
Universal Life Insurance is permanent insurance with the added feature of having a tax-sheltered investments portion built into the plan. Universal Life pays off precisely at the moment when significant costs and tax implications are triggered. This timing, along with the tax-sheltered savings feature, makes Universal Life Insurance a powerful financial tool in estate preservation, buy-sell agreements, leveraging, charitable giving, and pension maximization. The tax-sheltered status of it's investments component can also allow it to help pay for itself.
