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Policy Types

There are several ways to purchase life insurance.  The most common are Whole Life Insurance and Term Life Insurance.

What is Whole Life Insurance?

Life insurance under which coverage is intended to remain in force during the Insured’s entire lifetime, generally to age 95 or 100, providing premiums are paid as specified in the policy. A whole life insurance policy can build cash value on a tax-deferred basis. Both the premiums to pay and the cash values that result are predetermined and found in the policy contract. The cash value is an amount of money available to the policy owner for policy loans or as the surrender value if the policy is canceled and returned to the company.  Often dividends are paid which provide excess cash value which is based upon the insurance company investment performance.

What is Term Life Insurance?

As its name indicates, term life insurance insures you for a specific term or span of years. If you die during the term, your beneficiary is paid the coverage amount subject to your policy terms. Because it provides “pure” insurance without any cash value accumulation, term life insurance coverage is generally less expensive initially than permanent coverage. Term life insurance provides a great solution to the question: How can your family manage financially if you died prematurely?

Contact us and let Wayne Direct help you determine which type of life insurance policy may be right for you.

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