Life Insurance

What is Life Insurance?

Although life insurance is not typically thought of as an “asset protection insurance”, it is considered asset insurance from the point of view of loved ones. Having life insurance allows family a certain degree of financial security in the case of unexpected events or death. This type of insurance is designed to protect family against debts and other expenses that can arise in the case of death. Life insurance is widely considered as the cornerstone of a sound financial plan.

Major Types of Life Insurance


With a whole life insurance contract (Permanent Life), both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. This type of life insurance also accumulates cash value as the policy stays in force. Depending on whether the policy is a participating policy or not, it will receive a dividend if declared by the insurer. The cash value can be accessed by the insured in the later years in the form of a loan against the policy.


Universal life contracts typically provide the insured with more flexibility than other life insurance products. The death benefit can stay level or it can increase over the life of the policy. The policy also accumulates a cash value, which is credited with an interest rate as it grows. After money has accumulated in the account, the policyholder will also have the option of altering premium payments—providing there is enough money in the account to cover the costs.


Term insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from 1 to 30 years. Most term policies have no other benefit provisions. The cost of a term policy could rise on an annual basis(Annual Renewable Term) or it could stay level during the term chosen by the insured.


These are provisions that can be added by the insured to a life insurance contract, in most cases at an additional cost. Riders are there to provide an additional benefit to the insured that’s not offered in the original life insurance contract. Examples of common riders are Waiver of Premium, Spousal & Child Rider, Chronic Care & Guaranteed Insurability Rider. To learn more about the different riders available & how they can benefit you, please contact us.

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