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- Term Life Insurance with Return of
Premium
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This is what is referred to as refundable life insurance. With this
type of policy you are refunded all premiums at the end of the term.
This is a relatively new product to the insurance market (Return of
Premium, ROP). Many insurance companies still do not offer this as an
option.
Our belief is that this type of insurance is the best option for most
clients. The combination of the the guaranteed investment while
maintaining a large amount of life insurance coverage (compared to a
traditional term policy) usually make this the best option. We will
always quote both rates (ROP and non-ROP) to provide all information to our
customers so they can make a logical decision.
- Traditional Term Life Insurance
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Traditional
term life insurance provides coverage for a specific period of time, and is
therefore temporary. A typical policy term 5, 10, 15, 20, 25 and even 30
years. The premium is usually guaranteed to stay level during that
term period.
In the past
20 years this has been the most popular form of insurance.
Term life
policies are usually renewable at the option of the policy holder until the
insured reaches age 95. However, premium charges will usually increase each
year after the end of the initial guaranteed term period.
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Whole Life
Insurance
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Whole life
insurance is permanent insurance, which is designed to stay in effect
until death. Generally, the annual premiums are constructed to remain
constant throughout the life of the policy, but are typically more
expensive in the first few years as compared to term life insurance
premiums. Whole life policies accrue cash value the longer you own them.
Depending on the terms of the policy, accrual cash value may be borrowed
from the policy or applied to premium charges. Policy proceeds may be
reduced by outstanding policy loan amounts.
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Universal
Life Insurance
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Universal
life policies are a form of whole life, but offer greater flexibility.
You can select the amount of premium you would like to pay (within
limits established by the insurance company) and your policy benefits
are adjusted accordingly. This allows you to change the amount of your
premium or coverage in response to changes in your life situation.
We do not usually suggest this type of policy unless you have________
Choosing between the many types of life insurance available is a
function of where you are in life and what financial assets you are
trying to protect. Refundable Life Insurance can help you decide which
insurance is appropriate to your individual needs.
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