Term life insurance coverage is in effect for a specified period (or term) after which the insured typically has the option to renew the policy to a maximum age. No cash values accumulate in the policy as they do with permanent insurance.
Whole life is cash-value insurance which stays in effect as long as premiums are paid. That sets it apart from term insurance, which is for a specified term only and must be renewed on a regular basis. Premiums are paid for the “whole life” of the insured person, continuing until he or she dies or reaches a specified maximum age.
Universal life insurance, while similar to traditional cash value contracts, includes variations and options designed to make life insurance more attractive to consumers. A major difference is universal life policyholders can adjust both the premium and the death benefit – up or down – throughout the insured’s life.
Indexed universal life insurance includes features designed to make it more attractive to consumers. One of the features is indexing, which means values in specified accounts are linked to a financial index such as the S&P 500. This provides the potential for earning a greater rate of return compared to whole life. In addition, policyholders have the flexibility to adjust both premium and the death benefit up or down throughout the insured’s lifetime.
Our experienced staff is ready to get to work for you – call 800.877.7597, fill out the request a quote, email firstname.lastname@example.org or click on the LiveChat link to connect to our agents today!