Types of Life Insurance
Term insurance provides protection for
a specific number of years, with the death benefit paid to your beneficiaries
if you die during the policy’s term. When the term ends, so does your
coverage, unless you renew the policy.
Cash-value life insurance provides protection
over your entire life. Following are examples of Cash-value life insurance:
- whole life
policies
- universal life
policies
- variable life policies
For younger people, Cash-value insurance is more expensive than term.
But the premiums generally are fixed, so as the years go by, it can become
less expensive. Cash
values and interest accumulate in these policies tax-deferred, and you
can borrow from the cash value.
