Life Insurance 101

How its Used:

Provides coverage for a specific amount of time, or term, which varies depending on the product you select. The death benefit pays only if you die during the term of coverage. 

Face Amount:

Fixed

Length of Policy:

Limited time period

Cost:

Lowest initial premium 

Premiums:

Fixed for original level term period ends. 

Cash Value:

No

Cash Value Surrender Available:

No

Loans:

No

How its Used:

Provides insurance for a limited period but also accumulates some cash value. This may allow you to receive some or all of the premiums paid or to lower the amount of death benefit if you need or want to stop paying premiums.

Face Amount:

Fixed 

Lenth of Policy:

Limited time period

Cost:

Higher than traditional term but less than whole life

Premiums:

Fixed for original term but increases after the original level term period is over. This increase is less rapid than traditional term. 

Cash Value:

Yes

Cash Value Surrender Available:

Full only

Loans:

No