“If a child, a spouse, a life partner, or a parent depends
on you and your income, you need life insurance”
- Suze Orman
Three Types of Life Insurance
Term Insurance (Death benefits only)
Universal Insurance (Death and Living benefits)
Whole Insurance (Death and Living Benefits)
Each has its own advantage and one size doesn’t fit all. Let’s understand the
There are three popular types of term insurance, they are: Annual renewable
term, level term and mortgage insurance.
Annual Renewable Term – This contract renews annually, premiums
increase each year and it is best if you have a short-term need of about
five years or less.
Level Term – Higher premiums than ART in first years. Premium and
coverage remain level for stated time period – 10, 15, 20, sometimes 30
years at the end of period.
Mortgage Insurance – Face amount or death benefit decreases annually
while the premium remains the same. Insurance protection ends when
the face amount decreases to zero.
Advantage: This policy is less expensive than whole or universal life insurance
and offers pure death protection.
These contracts have cash value that earns tax-deferred interest at
competitive market rates, and premiums can be flexible.
You can skip making premium payments as long as the accumulated cash
value covers the cost of the pure insurance protection.
Depending on the contract, you can able to increase or decrease the
contract death benefits according to your needs.
Whole Life Insurance
Guaranteed premiums, interest and death benefit, lifetime
protection, cash value compounds, which can be substantial after about
Policy loans available at rates guaranteed in the contract, forced, taxdeferred savings with the benefit of FIFO (first in, first out) withdrawals
Want to purchase life insurance? Contact Driscoll Insurance & Financial
Services that helps their clients prepare for the unexpected.