Life Insurance

Life Insurance--Term

• Term life insurance is death protection life insurance for a "term" of one or more years.  Death benefits will be paid only if you die within that term of years.  Term insurance generally provides the largest immediate death protection for your premium dollar.

1. Provides temporary protection for the term of the policy

2. If the insured dies within the term period, the insurance company pays the death benefit.

3. If the insured survives the term period, the coverage terminates.

Life Insurance--Whole

• Whole insurance gives death protection for as long as you live.  The most common type is called "Straight Life" or "Ordinary Life" insurance for which you pay the same premiums for as long as you live.  These premiums can be several times higher than you would pay initially for the same amount of term insurance, but they are smaller than the premiums you would eventually pay if you were to keep renewing a term policy until your later years.  Whole life insurance policies develop "cash values" which you may have if you stop paying premiums.

1. Provides lifetime protection, so long as the policy is kept in force

2. The insurance company pays the death benefit regardless of when death occurs, so long as the policy is kept in force

3. The policy accumulates cash values that can be used during the insured's lifetime (withdrawals and loans will reduce the policy's death benefit and cash value available for use).

Universal Life Insurance

• Universal is a type of cash value insurance.  The policy owner can increase or decrease premium payments and select from a level or increasing death benefit.  Cash value accumulations reflect current interest rates.  It has similar characteristics to the coverage above.

Last Updated:  01/10/2002 01:20:26 PM

Call us at 505-325-1849 for a quote.

Last Updated:  01/10/2002 01:20 PM

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