Introduction to Life Insurance

Many people think of life insurance simply as a means of providing for their loved ones. It's true that all life insurance contracts offer a death benefit, but some have additional features that can help them become part of your own financial plan.

A term life insurance contract may be a good choice if you want insurance for only a set period of time, predictable payments, and want to keep the cost of premium down. Your coverage typically ends when your term insurance contract reaches the end of the term period.

Whole life contracts have predictable premium payments and they provide insurance for as long as you live (your "whole life"). Whole life contracts also have a guaranteed cash value, which may be available to you under certain circumstances.

Universal life insurance can also provide insurance for as long as you live; with the added flexibility of letting you pay your premiums when you wish (as long as the cash surrender value is sufficient to cover the monthly deductions). The guaranteed minimum interest rate for the accumulated value helps ensure long-term growth that protects against the effects of inflation.

Variable universal life insurance combines permanent adjustable life insurance with investment choices. As the contract owner, you choose the underlying investment portfolios that have the potential to increase the contract's cash value and ultimately the death proceeds that are paid to your beneficiaries at your death.

Compare different life insurance features and benefits

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