Permanent life insurance provides life long protection in exchange for a level premium payment. Although life insurance is most often purchased to provide a death benefit, it can also provide living benefits. The cash value of a permanent life insurance policy grows income-tax-deferred. It can be used to provide an income stream during retirement or can help meet other long-term financial goals, such as funding a college education for a child or grandchild.
Term insurance provides financial protection, in the form of life insurance, for a limited period of time. These policies are good for young people with growing families, or for covering a temporary need such as a mortgage. Most term policies contain a conversion period which allows you to convert to a permanent policy at a later date.
Initially, term insurance premiums are lower than permanent insurance. However, with some term policies, the costs increase over time and can become prohibitive as the insured ages.
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Universal Life policies can provide the amount of protection you need at the time you need it. By offering a high level of death benefit and premium flexibility, you can customize the policy to meet your specific objectives today. When those needs change, you can adjust the policy to help ensure it continues to meet your needs in the future.