Father and daughter looking over a baby

What type is right for me?

Purchasing life insurance protects your loved ones and your assets. It can also serve as income replacement to take care of your family’s living expenses if something should happen to you.

But which type is right for you?

There are many factors you’ll want to consider when choosing life insurance. Think about what you want in terms of death benefits, tax advantages and flexibility.

There are three main types of life insurance:

  • Term Life - Term life insurance is temporary insurance which you pay a premium for a fixed amount of time (e.g., 10, 15, 20, or 30 years). Term life insurance helps ensure your family isn’t impacted by your debt if you should pass away.
  • Universal Life - Universal life is a permanent yet flexible solution. It helps protect your loved ones and may offer the opportunity to build cash value. You could have the ability to take loans or make withdrawals from the policy’s cash value for your personal needs.*
  • Variable Universal Life - This life insurance offers investment options for greater growth potential and the opportunity to take loans or withdrawals from it in the future.* Unlike Universal that’s based on a fixed interest rate, your cash value fluctuates with the market, with the opportunity for higher return potential. This policy also has the flexibility to adjust to your changing needs.

A quick comparison

Use this chart to get an overview of the differences between these types of life insurance and see which one might best meet your needs. An advisor can walk you through your options and discuss the right type for you.

  Term Universal Variable Universal
Type of Coverage Temporary Permanent Permanent
Payments from Policyholder Fixed Premium Flexible Premium Flexible Premium
Tax-deferred Growth Potential No Yes Yes
Dependent on Investment Performance No No Yes
Death Benefit Guarantee Options Yes, within term only Yes Yes

  

*Loans and withdrawals will reduce the policy’s cash value and death benefit, may cause the policy to lapse, and may have tax implications. 

   

LCN 1935217-103017-B