3 Types of Life Insurance:
At Skyway, we will work with your needs and suggest the amount and type of insurance that suits your needs. Basically, there are 3 different kinds of Life Insurance and are outlined below
1. Term Insurance (Temporary/no cash values):
Term Insurance is an inexpensive way to insure a temporary need. The costs will stay level for the length of the term. If insurance is needed beyond the prescribed term, it can be renewed at higher premiums, reapplied for (must be healthy) at attained age costs or converted to a permanent plan at attained age (no matter what state of health).
2. Whole Life Insurance (Permanent/cash values):
Traditional Permanent Insurance that costs more initially, but will build cash values through dividends that can help pay future premiums, add to the death benefit amount or simply cash out or borrow from when available. Typically, dividends can offset the costs after the 11 or 12th yr. assuming the dividends pay the same rate as when the policy was put in force.
3. Universal Life Insurance (Permanent/cash values):
A more flexible and transparent product that has set costs for insurance and any extra can be put into a cash accumulation fund (with limits) and grow in a tax shelter. Monies can be invested in a variety of investment instruments such as indexed accounts and GIC’s. Costs of insurance can be level or yearly increasing. Yearly increasing is only advisable if the policy is being funded over the minimum premium. Deposits can be varied from year to year as long as the minimum premium is satisfied.