Term Life Insurance
Term life insurance provides your beneficiaries with a monetary benefit should you die during the time period, or term, for which you have purchased coverage. This money is tax-free and can be used by your survivors to meet the financial needs they may face, including funeral costs, estate taxes, medical bills, mortgage payments and other living expenses, and education. In most cases, term life insurance is a very affordable coverage option for safeguarding your family’s future.
Whole Life Insurance
Unlike term life insurance, whole life insurance provides protection throughout your entire lifetime, not just for a designated coverage period. The cost of your premium typically remains the same for the life of the policy. Perhaps the biggest benefit of whole life insurance coverage is that you are guaranteed a payout upon your death.
As they are invested over the course of the policy, your whole life insurance premiums build cash value that remains tax-deferred until you withdraw it. You can even borrow against these dividends. However, along with the added benefits of whole life insurance comes a higher cost for premiums.
Universal Life Insurance
Universal life insurance combines key advantages found in both term and whole life insurance policies. Policyholders enjoy lower-cost premiums that are invested and build cash value over time.
A distinctive feature of a universal life insurance policy is its flexibility–you can shift the amount of insurance coverage as your insurance needs change over time. As an added plus, you can use the interest from your premiums’ accumulated savings to help pay your insurance costs.
With so many different life insurance policies to consider, it is wise to get expert advice that can point you in the right direction. We invite you to talk with an Anthony F. Cordeiro Insurance Agency, LLC, agent today. Our Personal Lines team will be happy to explain the pros and cons of each policy option and help you choose the life insurance coverage that best fits your family’s unique needs.