Life insurance is a contract between the insurance policyholder and the insurer, where the insurer promises to pay the designated beneficiary a lump sum of money in exchange for a premium upon the insured person’s death.

Life insurance is typically chosen based on the needs and goals of the owner of the policy.

• Term Life: Provides protection for your property, assets, and family over a set period of time such as 10, 15, or 20 years. Term life is generally less expensive than permanent life insurance.
  • Can assist with providing a safety net for paying off mortgage
  • Can keep a business running
  • Can support your family through childhood and paying for college
• Permanent Life (Whole or Universal): Provides protection for your property, assets, and family over the insured.
  • Carries a higher premium because you are guaranteed a pay out to your beneficiary as long as premiums are paid. You have a fixed premium that builds cash value and can function as savings that you can borrow against as it builds.
  • Assist with estate planning
• Final Expense: Also known as burial insurance, final expense is designed to cover the bills that your loved ones face after your death.
• Universal Life: Insurance protection that provides lifetime coverage. It is flexible, so it may start off as a lower fixed payment and convert to a higher premium.
  • Can be used for multiple long-term goals. For instance, the insured can start off by protecting their family to pay off a mortgage and then convert to estate planning and preparing your family for after life expenses.
  • Can provide a fixed payment option while still having the ability to build cash value and permanent guaranteed death benefit.

Death benefits from all types of life insurance are generally income tax-free.