Life Insurance

A contract (policy) under which an insurance company agrees to pay a stated amount to the beneficiary upon the death of the insured.

Term Life

Provides coverage for a specific period of time “term.” It is good for people who like a high dollar amount of coverage for the lowest cost. Because term life insurance is convertible it is ideal for those that nee immediate protection. Level premium, level coverage, no cash value. The annual premium is fixed for a period of time, typically 5,10,15 or 20 years. Suitable for financial obligations which remain constant for a short ot intermediate period. e.g., income during a minors dependancy.

Universal Life

Is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. The flexiblity of this policy allows you to change the amount of insurance as your needs for insurance change. Some changes require underwritten approval.

Whole Life or Permanent Insurance

A form of life insurance which has a guaranteed level death benefit until death or age 100, some companies it is until death or age 120, whichever comes first, and which builds a guaranteed cash value which will equal the face amount of the policy at age 100. Premiums for a whole life are also level and may be paid as long as the insured is alive or until the max age stated by the company.

Single Premium Whole Life

Whole Life Insurance with the full premium paid in one lump sum.

Limited Pay Whole Life

Whole Life Insurance where the premium is paid for a set amount of time.

Variable Life Insurance

Combines the protection of traditional life insurance with the potential to earn market returns on you policy’s cash value.

Decreasing Term or Mortgage Insurance

A type if decreasing term insurance designed to correspond directly with the amount of outstanding loan and length of time remaining on a mortgage. If the insured dies during the mortgage period, the outstanding balance is paid by the insurance compnay to the beneficiary or directly to the mortgage company.