Term Insurance:  Term life insurance provides coverage for a certain period of time, or a specified “term” of years. If the insured dies during the time period specified and the policy is active, or “in force,” then a death benefit will be paid.  Term policies are much less expensive compared to permanent (whole) and Universal Life.  They are a straight value amount and designed to cover you during a period in your life when bills are highest and coverage is needed most.  Term polices cannot be extended to a singular new term, but can be transferred at its maturity date to permanent life insurance.

Whole life insurance provides coverage throughout your life as long as your premiums are paid up to date. There is no expiry date and in addition to paying a tax-free death benefit, whole life insurance includes a savings component in which cash value may accumulate. Interest accrues on a tax-deferred basis. Payments do not fluctuate or increase with age.

*TIP*:  These policies gain higher interest when purchased at an earlier stage in life of the insured.  Highly recommended for children and young adolescents.

Univeral Life Insurance is a whole life policy that gives you more control on where your interest investment will build in value.  Premium payments can change within certain limits. This policy is aimed toward the master investor.