Life Insurance is generally available in two types of products. They are known as “Term” and “Whole” life insurance. Each is designed to provide the financial coverage that would protect your family should something happen to the wage earner(s), but they approach the investment in different ways.

photo of family shot from behind as they walk on a trailTerm Life Insurance:
Term Life Insurance is a type of policy that provides coverage for a fixed number of years. This is called the “Relevant Term.” After that time expires, the insurance coverage ends. The insured must find alternative life insurance coverage and pay whatever rates may apply based on their older age at the time of policy purchase.

If the insured dies while the Term Life Insurance policy is in effect, the beneficiary will be paid the entire face value of the policy.

Term Life Insurance is often less expensive per year and makes sense for families that want security for specific obligations such as paying off a home or paying for college or securing the surviving beneficiaries until retirement age.

Frequently, when employers offer Group Life Insurance benefits, there is an optional opportunity for employees to purchase Dependent Life Insurance at a discounted group rate that covers spouses, domestic partners and dependents.

Whole Life Insurance:

Whole Life Insurance is a type of policy that will stay in force throughout the insured’s lifetime, provided that the premiums are paid until whatever the maturity date might be. The fixed premium amount is locked in at the time of the purchase. It is usually calculated based on the insured age and health at the time of issue and generally will not increase as the person ages. The younger the person is when they purchase the policy, the less costly the premiums will be.

Most Whole Life Insurance policies accrue a cash value during the life of the policy.  Sometimes the policies are written so that the premiums are fully paid at the 10- or 20-year anniversary or perhaps at age 65. Sometimes, the policy requires payments until the insured dies.

We are prepared to discuss individual and business group Life Insurance policies to help you choose the right plan for your or your employees’ needs or for your personal family needs.