Life Insurance

Whole life insurance provides not only security from financial hardship in the case of a death, but also a “living” savings and investment vehicle for the policyholder. As cash value insurance links insurance protection with savings, premium dollars paid contribute to the combined program. 

In addition to the guaranteed cash value buildup in the policy, policyholders are provided with regular dividend payments, the result of lower expenses, lower mortality rates and higher investment results than were predicted when premiums were set.

Another whole life insurance feature is predictability of expense: Premium payments at inception of the policy will not change and will continue until the policy endows (when the cash value of the policy equals the face amount of the policy).

This policy provides all of the above benefits of whole life and adds the possibility for the policyholder to change both the amount of premium payments and insurance coverage as individual needs change. 

The policyholder accepts the investment risk associated with the investment portfolio choices available, which can include growth, income, money market, equity income and diversified mutual funds. 

As the name implies, term insurance provides pure insurance protection for a specific period – or “term” – of time. It does not generally offer any guarantee of premium, death benefit stability or right of renewal. It does provide some of the lowest cost protection available, and it is this cost factor that is its most beneficial feature for some.