Basic Features of Life Insurance:
● The Death Benefit: how much the insurance company will pay once the insured
person dies
● The Beneficiaries: people such as a spouse or children who receive the death
benefit
Two Most Common Policies:
Term: Starting at 10 years up to 30 years, with a set price correlated with
the policy length and renews yearly.
Term Coverage is for you IF:
● You are looking for the affordable option
● Generally suitable for families
● You are considering whole life coverage in the future
● Young and single
Recommended from age 25 to 45
Key Features:
● Low premium
● Simple
Whole Life: lasts until death, “set it and forget it” life insurance. Premiums
stay the same, with guaranteed rate of return on the policy’s cash value, and
a consistent death benefit
Whole Coverage is for you IF:
● Have a lifelong dependent, such as a child with disabilities
● Want to spend retirement savings and still leave money for expenses such as
funeral costs.
● You plan to leave a business or property to one child, whole life insurance could
compensate other children
● If your long term goal is to accumulate a savings for your children
Key Features:
● One and done, lifelong coverage
● Generates cash value with guaranteed growth
● Consistent premiums for life
● Death benefit is guaranteed
Recommended after 45
What will you leave your family if you part too early?
Other Policies
Guaranteed Universal Life Insurance: permanent life insurance that acts
similarly to whole life, but with flexible premiums.
Variable Life Insurance: permanent life insurance with flexible premiums.
However, the cash value is invested in sub-accounts such as bonds and mutual
funds and will fluctuate based on the market of your investments.
Final Expense: intended only for expenses such as funeral costs and burial
costs. There is no cash value component and no support for beneficiaries.
Recommended for those without dependents or children
Group Life Insurance: term policies that are typically offered in an employment
package.
Underwriting: predicts how much you will pay based on the risks of insuring
you.
Fully Underwritten: often the cheapest option. Requires a medical exam
and questionnaires about your health and your family’s health.
Simplified Issue and Guaranteed: does not require an exam, but will often
require a questionnaire
Guaranteed Issue: does not require an exam or a questionnaire
Mortgage Life Insurance: in the case of death, pays off your mortgage to the
lender
Credit Life Insurance: in the case of death, pays off a specific loan to the lender
Accidental Death and Dismemberment: coverage in the case of accidental
death such as a car crash
Joint Life Insurance: generally for two spouses
Your life leaves a legacy
So hurry up, and get a life with the right life insurance policy for you!
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