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Life Insurance

There are 3 types of life insurance, and there are many purposes that these plans are used for.

Term Insurance

    
This type of life insurance is used for temporary purposes.  It is also the cheapest form of life insurance.  From 10 year, 20 year, 30 year, as well as other term periods, these plans are exactly as they are named.  Once the term period is over there is no more insurance.  Now this does not mean you can't continue to have insurance, you just have to pay a higher premium.  These plans are not designed to be a source of permanent coverage. In the long run, these plans could end up being more expensive then a permanent plan.  These plans can be used to fulfill short term needs, for example, to help pay for the mortgage, provide income for the surviving spouse, to pay debt or medical bills.  Things that may not be a permanent need.

Whole Life

    This is a permanent form of life insurance.  This type is the most costly form of life insurance.  However, it is not term, so the plan as well as the premium never changes.  These plans are typically used for things that are a permanent need, such as final expense planning, asset planning, asset transfers.  These plans also build cash value that can be used to borrow from when needs present themselves later in the life of the policy.

Universal Life

Universal life is another source of permanent coverage.  These plans can be used for similar purposes as whole life, but tend to have a lower cost then whole life.  These plans can also provide the freedom of having a flexible premium, giving the policy owner the ability to adjust their premium when certain needs present themselves.

Both whole life and universal life can be used for other purposes other than just for the death benefit.  These plans can be an excellent source of tax free pension planning for retirement, for critical illness options, as well as long term care.  To understand how each of these plans could benefit, a good agent can design the plans to best fit you needs.

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15 E 30th Ave | Hutchinson, KS 67502
Phone: 866.348.1197 | Phone: 620.669.5454 | Fax: 620.669.5377

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