Few would argue against the importance of having life insurance, especially if there are others who depend on your salary, for example; children, spouse and/or other family members. Upon your death, a life insurance policy will pay your beneficiary a lump sum that can; replace lost income, pay off outstanding expenses (mortgage, debt, vehicle, etc.), cover final expenses, and/or go towards children’s education.

There are various types of life insurance policies such as, Term Life and Universal Life insurances. Individual needs vary and finding the type of life insurance that is right for you and your family is a critical component of your overall financial plan. The following is a basic overview of each policy:

Level Term Life

Description: Level Term Life Insurance covers an individual for a specific period of time, most commonly 5, 10, 20, or 30 years. Term life insurance has the lowest premiums.

Features: Level premiums and death benefits guaranteed not to change for the length of the term of the policy. If the policyholder is interested in renewing the policy after the policy term expires, the previous premium is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. The new policy premiums will be based upon the policyholder’s age and health at the time of renewal. Many term policies can also be converted to permanent policies during a certain term of the policy.

Ideal for Individuals concerned about: limited budgets and short or specific term debts such as a mortgage, college tuition, or income replacement for a number of years.

Term Insurance
20 Year Term
Age Monthly Premium
$250,000 Death Benefit
Monthly Premium
$500,000 Death Benefit
35 $17.08 $30.63
45 $33.17 $64.31
55 $76.50 $155.31
65 $257.91 $510.56

**These are example premiums. Actual premiums are based on individual applicants underwriting decision.

Universal Life

Guaranteed Universal Life

Description: Permanent Life Insurance coverage that provides a death benefit as well as builds cash value.

Features: Permanent coverage with level premiums for the life of the policy. A portion of the policy premiums are invested by the insurance company and build cash value which the policyholder may borrow against, tax free. Any policy loan amounts not paid back will be deducted from the death benefit in the event of a claim.

Ideal for Individuals concerned about: coverage for debts and income replacement as well as final expenses and leaving a family legacy or estate.

Indexed Universal Life

Description: Permanent Life Insurance coverage with flexible death benefit and premiums which can be changed as the policyholder’s circumstances change. The policy also builds cash value that the policyholder may borrow against.

Features: The policy premiums are invested by the company and the cash value of the policy is based on the performance of those investments. There are guaranteed minimum values and the growth is tax-deferred.The policy premiums are flexible up to specific guaranteed maximum and minimum values.

Optional Features:

  • The policyholder may use the interest from his or her accumulated cash value to help pay premiums.
  • Premiums can also be paid for a specific number of years while the coverage still remains intact for the life of the policy.
  • Cash value can be converted into a tax-free income stream at a certain point to be paid for the individual’s lifetime or for a specific number of years.
  • This policy also offers Riders which extend coverage for needs such as:
    • Term coverage for a spouse and/or children
    • To pay policy premiums in the event of disability.
    • Advanced Death Benefit Rider in the event of a chronic or critical illness.

Ideal for Individuals concerned about: coverage for debts, income replacement, and/or leaving a legacy for their family. Flexible premiums are helpful for individuals who may want to stop payments once they retire or limit payments in the event of temporary budget restrictions, such as while paying for children’s college.

Indexed Universal Life Based upon $250,000 Death Benefit
Age Monthly Premium Cash Value Critical Illness Income for Life
35 $243.00 $231,336 $226,936 $16,191
45 $383.42 $142,714 $139,904 $139,904
55 $641.33 $133,354 $124,937 $9,704
65 $1,194.17 $238,706 $221,057 $16,840

**These are example premiums. Actual premiums are based on individual applicants underwriting decision.