by Richard Schlueter, Vice President – Insurance Services, Wealth Enhancement Group

Life insurance needs vary depending upon your personal situation.  From term insurance to the many permanent products that offer guarantees and cash accumulation, choosing the right product can be confusing. Below is a brief overview of the various types of insurance that are available to help guide you in choosing which Life insurance is appropriate for you. Ultimately, I recommend contacting a Life Insurance professional for more information and to help determine what form is best for you.

Term Insurance – Term life insurance is a form of temporary insurance that provides a lump-sum payout upon death for a state period of time. Since term insurance can be purchased in large amounts and for a relatively small out-of-pocket expense, it is most suitable for income replacement and short-range goals (i.e., to pay off a mortgage loan, to fund a child’s education, etc.)

Death Benefit: Fixed
Premium: Choice of level or increasing
Cash Value: No
Goal: Pure Protection

Whole Life – Whole Life is a form of permanent insurance that covers a client for as long as he or she lives and continues to make the required premium payment. Whole Life can be a good fit for achieving long-range goals, as the premiums remain the same for the life of the policy. In addition, cash values may provide money to help with temporary needs or emergencies that may arise.

Death Benefit: Fixed or Increasing
Premium: Fixed
Cash Value: Yes
Goal: Protection and Cash Value

Universal Life – Universal Life is a permanent, flexible-premium, adjustable death benefit life insurance policy that builds cash value. The flexibility of this policy allows you to change the amount of insurance, as your needs for it change. Some of these changes may require an additional medical exam. Universal Life makes sense for those individuals who have a long-term need for life insurance and desire premium flexibility.

Death Benefit: Fixed or Flexible
Premium: Flexible
Cash Value: Yes, based on declared interest rate
Goal: Protection and Cash Value