Protecting Your Family & Future For Life

Life Insurance

Definition – A contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

 

Different types:

Term – provides coverage for a specified amount of time in terms of years in exchange for a specified premium. The policy does not accumulate cash value. There are three key factors: Face Amount, Premium to be paid, and Length of coverage.

Permanent – Whole and Universal

Whole – Provides for a level of premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown.

Universal – Intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for greater growth of cash values.