Other Types of Life Insurance Policies

Explore term, whole, universal, and variable life options

Other Types of Life Insurance Policies

There are several types of life insurance, and the one that is right for you will depend on your financial goals, budget, and how long you need coverage. Here are some key differences to consider:

Term Life vs. Cash Value Life Insurance

• Term Life Insurance offers affordable coverage for a specific period typically 10, 20, or 30 years. It’s designed to provide protection during key years—such as when raising a family or paying off a mortgage.
• Cash Value Insurance (also called permanent insurance) provides lifelong coverage and includes a savings component that builds cash value over time. While it can be more expensive than term life, it may be more cost-effective for long-term needs.

Whole Life vs. Universal Life Insurance
Both are types of permanent, cash value life insurance, but they vary in flexibility:

• Whole Life Insurance has fixed premiums and guaranteed cash value growth.
• Universal Life Insurance offers more flexibility—you can adjust your premium payments and death benefit, if there’s enough value in the policy to keep it active.

Variable Life vs. Non-Variable Life Insurance

• Variable Life Insurance allows you to invest the cash value portion in sub-accounts like stock or bond funds. This provides greater growth potential—but also greater risk.
• Non-Variable Life Insurance offers more stability. It typically includes minimum guarantees on interest or cash value, though it may grow more slowly.

Understanding these differences can help you choose a policy that aligns with your goals. A licensed insurance advisor can help you compare options based on your personal needs.