LIFE INSURANCE

Life insurance is designed to protect the individual and the individual's family from the risk of premature death by providing specific amounts of money exactly when needed to cover necessary expenses.

Types of Life Insurance

Term Life: Temporary, predictable coverage and typically lower cost.

Group Life: Another temporary insurance offered by employers or groups at low cost.

Whole Life: Permanent protection with guaranteed cash-value growth.

Universal Life: Permanent coverage with flexible premiums and insurer-set interest.

Indexed Universal Life (IUL): Interest linked to selected market indices.

Variable Universal Life (VUL): Owner-selected investment sub-accounts with investment risk.

Guaranteed Universal Life (GUL): Long-lasting protection with little or no cash-value buildup.

Overfunded Permanent Policy: Extra premiums can increase coverage and cash value in whole or universal life.

The Takeaway: Compare cost, flexibility, cash value, protection period, and risk.