Navigating Life Insurance

Term life insurance provides coverage for a specific period of time — typically 10, 20, or 30 years. You choose the amount of coverage (the death benefit) based on your financial needs during that season of life.

Premium payments may be made monthly, quarterly, semi-annually, or annually, depending on the policy structure. If you pass away during the selected term, the full death benefit is paid to your designated beneficiaries.

Unlike permanent policies, term life insurance does not build cash value. Because of this, it often offers a lower initial premium compared to other types of life insurance with the same coverage amount.

Whole life insurance provides permanent coverage that lasts for your entire lifetime. You select the death benefit amount based on your financial goals and long-term protection needs.

Premiums are typically fixed and may be paid monthly, quarterly, semi-annually, or annually. Over time, a portion of each payment contributes to the policy’s cash value, which grows on a tax-deferred basis.

Unlike term insurance, whole life is designed to build long-term value. While premiums are generally higher than term coverage, the policy accumulates equity over time. Policyholders may borrow against the cash value for various needs, though any outstanding loan balance and interest would reduce the benefit paid to beneficiaries if not repaid.

Universal life insurance is a type of permanent coverage that includes a cash value component. In addition to lifelong protection, it offers greater flexibility than many traditional policies.

With universal life, you may be able to adjust your coverage amount and premium payments over time to reflect changing financial needs. You can also make additional contributions to build cash value within the policy.

As the policy accumulates cash value, those funds may be accessed through policy loans, provided sufficient value has built up. In certain situations, premium payments may be covered by the accumulated value within the policy.

Unlike whole life, universal life policies typically earn interest based on current market rates. This means there may be potential for higher returns — but returns can also fluctuate depending on market conditions.

Final expense insurance is designed to help cover end-of-life costs, such as funeral expenses, medical bills, or other outstanding obligations. It provides a smaller, focused life insurance benefit intended to ease the financial burden on loved ones during a difficult time.

By planning ahead, you can help ensure that those closest to you are not faced with unexpected expenses or financial stress. The policy’s death benefit is paid directly to your designated beneficiary, who can use the funds as needed.