There’s more to life insurance than taking care of loved ones if you pass away. Life insurance can also be an essential part of a financial plan. In addition to helping to protect loved ones financially with a death benefit, some products can grow money on a tax-advantaged basis that can be used during one’s lifetime. The ability to meet more than one need makes life insurance a product that adds valuable flexibility to any portfolio. Talk to your financial professional if you think life insurance might be right for you.
Permanent Life Insurance
Permanent life insurance is designed to provide coverage for life. Many permanent life insurance products also have a feature called cash value. This cash value can grow over time through interest credits, market returns, or dividends, providing money that can be used for a variety of needs. Permanent life insurance products include: Universal Life, Indexed Universal Life, Whole Life, and Variable Universal Life.
Term Life Insurance
Term life insurance covers you for a fixed number of years, such as 1, 5, 10, 20, or 30 and pays a death benefit if you pass away during the covered time period. Most term insurance policies offer a level premium, death benefit, and the ability to convert to a permanent policy if your needs change. You can also choose coverage for current needs and add optional riders for future needs.