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A life insurance policy provides
financial security for your family or beneficiary upon your death.
There are several traditional
types of life insurance:
Term Insurance provides more
life insurance for your premium dollar in the early years. It pays
benefits only if the insured dies during the covered period. It does
not accumulate any cash value, however you can purchase the
return of premium option, which will return all premium dollars
paid into the policy if the insured outlives the policy term. Term life
insurance is best when your life insurance needs are 30 years or less
and the cost of Whole or Universal life insurance is more than your
budget will allow.
Whole Life provides a fixed
amount of life insurance coverage and a fixed premium amount. Benefits
are payable upon death of the insured or age 100. Premiums remain fixed
throughout the policy lifetime. Cash value accumulates and increases
over the years of premiums being paid. Loans can be made from the cash
value built up in the policy.
Universal Life is a variation
of a whole life policy where the death benefit amount can increase or
decrease to meet the changing needs of the insured. You can decide
(within policy guidelines) on the premium amount and the schedule of
payments. The policy cash buildup can be either a fixed rate or interest
sensitive.
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