This is a question that we receive often and the answer is simple. There is no easy answer. It depends on what you want your life policy to do for you and when you want it to pay. Allow me to clarify. Term insurance: This is a product that has a level face amount with rates guaranteed for a specified time period. Ex: $500k Death Benefit (Face Amount) for 20 years. In this example the $500k policy would remain the same in two areas: premium payments and amount of coverage for 20 years guaranteed.
Permanent insurance is a product that typically has a cash accumulation element to it and lasts until a person dies versus having an expiration date to it. There are various permanent plans: Whole Life, Universal Life, Indexed Universal Life, and Variable Universal Life. The differences being how the plans are structured, flexibility in payment options, and what type of cash accumulation accounts the policy has.
Q: “So which one should I buy?”
A: Here’s my advice: Talk it through and explore your options. Meaning: a Term policy may be the solution initially to provide larger amounts of protection and less out of pocket than a Permanent policy would and it may make sense to explore a blended approach of layering your policies (Term and Perm) to achieve both short-term and long-term goals.
Q: “Which policy is the best policy to buy?”
A: The answer is simple…the one that is in force when you die.
Please reach out so we may help you discover which plan is best for you!