How Well Is Your Family Protected?

Term insurance is a form of insurance that provides you with coverage for a specific term of time during a contract period, where the death benefit is paid only if you die during the specified term period. The term period or contract period can be from one or more years. Typically the term periods range from 10 to 30 years depending upon the type of term policy.   

Term insurance can be used in many ways. Generally it is a way to provide large amounts of coverage at a low cost and provides a pure death benefit for a limited budget. Some examples are: 

• Mortgage Protection, used to pay off your home in the event of uncertainty
• Key Employee, used to replace monetary value of executives, managers, important employees and business partners so that your business stays intact and operational in the event of uncertainty.
• Term insurance can also be used as an inexpensive means to supplement the need for additional coverage.

 Permanent Insurance is a type of insurance that generally builds cash value and generally has set premiums and coverage face amounts. Some types of permanent policies have flexible premiums and adjustable coverage amounts. Coverage lasts your lifetime, as long as the premiums are paid. The policy accumulates a true cash value; the amount of cash value will vary depending on the type of policy and premium payments.      

Depending on the type and structure of the policy, premiums can be paid for a lifetime, until age 65, 20 years or  in some cases as little as 7 years. The premiums accumulate a true cash value that can be used in several different ways to your advantage. The amount of cash value will vary depending on the type of policy and premium payments.  You can use the cash value to keep your insurance protection in place to pay your premiums for a limited time, emergency funds, and other financial needs (see Retirement Strategies).