Deciding what type of and how much life insurance to buy depends on your responsibilities, your specific objectives, and your financial needs for the future.
Term insurance – is designed to cover the temporary needs of families at an affordable cost. Term insurance provides coverage for terms of 10- or 20-year until you’re 80 years old, at which point coverage expires. Initially, the cost is most affordable, but will increase as you age. If you require long-term coverage, permanent insurance is a better solution.
Permanent insurance – is designed to provide insurance coverage for your entire lifetime at the same guaranteed rates. It is an ideal choice for retirement planning, estate planning and charitable giving. Over the long term, it could be less expensive than term insurance.
Universal life insurance – provides a tax-free death benefit plus the option to invest and earn tax-deferred interest. It is used as a sophisticated financial planning tool for people with significant disposable income. It is also an ideal choice for people who want to finish paying the premium within a certain time period (10, 15, or 20 years).