Term Life Insurance
At its core, term life insurance is a contract that provides coverage for a specified period, or “term.” Unlike permanent life insurance options, term life insurance focuses solely on the duration of the policy. Its primary objective is to furnish financial security for your beneficiaries in the vent of your untimely demise within the chosen term.
Factors to Consider
How it Works
Understanding the mechanics is crucial. You pay regular premiums throughout the term. If the insured individual passes away within this period, the policy pays out the predetermined death benefit. If the term expires and the insured person is still alive, the policy typically ends without any payout.
Indexed Universal Life (IUL)
Indexed Universal Life Insurance is a type of permanent life insurance policy that offers both a death benefit and a cash value component. What sets IUL apart is its unique connection to the performance of a specific market indices, allowing policyholders to potentially benefit from market gains without being directly exposed to market losses.
How it Works
IUL operates by allocating premium payments into two key components: the insurance coverage and the cash value. The cash value is then invested in various indexing strategies linked to market indices, such as the S&P 500. There are different indexing methods, including point-to-point, monthly averaging, and more. Additionally, policyholders are subject to certain factors like cap rates, participation rates, and floor levels, which affect how the policy’s cash value responds to market fluctuations.
At its core, Whole Life Insurance is a type of permanent life insurance that guarantees coverage for your entire lifetime. Unlike term life insurance, which offers coverage for a specific period, whole life insurance offers a combination of a death benefit and a savings component known as cash value. This cash value grows over time, adding an extra layer of financial security and flexibility to the policy.
Long Term Care
Long Term Care Insurance (LTCI) offers essential coverage for individuals who require extended assistance with daily activities due to illness, disability, or aging.
LTCI coverage varies based on the policy and provider. It typically covers services such as: