Types of Insurance

Whole Life Insurance, also known as “When You Die” insurance, provides a 100% guaranteed death benefit payout for your entire life. Premiums are fixed and largely based on your age and health TODAY. Securing a policy earlier when you’re younger and healthier is the best way to get the lowest possible premiums. In addition, Whole Life coverage provides cash value you can borrow against over time. Whole Life is designed to be permanent and portable, owned and controlled by you. With Whole Life, you and your family are protected no matter where you live or if you’re employed.

Term Life Insurance, also known as “If You Die” insurance, is typically provided by employers and is designed to cover a wide range of people. While Term Life Insurance is often less expensive than Whole Life Insurance, there is no payout if you die outside the limits of the term. If you receive Term benefits from an employer, you usually do not own or control the policy. If you quit, get fired, or become disabled, you will most likely lose those employer-provided benefits. This is why Term Life only pays out about 1% of the time. Term also doesn’t build cash value and premiums tend to increase over time as age progresses and health changes. Generally, Term Life is more suitable for temporary things like mortgage protection, as the amount of insurance required tends to decrease over time in concert with the mortgage balance.