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Life insurance helps protect the financial security of your family in the event of your untimely death. Throughout the term of the policy, you pay premiums and at the time of your death, your beneficiaries are paid the amount of the death benefit. The amount of premiums and the amount of death benefit depend a great deal on the insurability of the person, as well as the type of policy that is purchased.
There are three types of fixed insurance products:
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Term Life — is purchased for a specific period of time (one year, five year, ten year and longer). With term life, if you die within the period of time, the death benefit is paid to the named beneficiary. But, if you live beyond that period of time, no payment is made. Because of this, the premium on term insurance is generally the lowest.
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Whole Life — is the traditional type of life insurance. Premiums are guaranteed in the contract for the entire time the policy is in force. You accumulate a cash value, but the insurance company determines the interest rate credited to the cash value.
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Universal Life — offers more flexibility than whole life. The amount of premiums may vary as long as the available cash value is sufficient to cover the costs of the policy. You also can opt to increase or decrease the amount of the death benefit while the policy is in force (subject to underwriting approval).
See your Lincoln Financial Advisors Representative to see if a fixed life insurance product is right for you.
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