Term insurance – covers an individual for a specific amount of time (10, 20, and 30 years etc.). This is most used by younger individuals who need to provide lost income to their families if something were to happen to them. It can be used as safety net to help families meet their financial goals. Term insurance is the most inexpensive option to provide targeted security for your family.
Whole Life – has a guaranteed premium payment and is the most common permanent life insurance. These policies have a cash value and grow with a guaranteed rate of interest. The benefits of whole life insurance are the ability to access your money, guaranteed cash value, and tax advantages. The longer you hold a policy, the more the cash value may increase. Whole life policies have the ability for individuals to take loans out against the cash value providing you with additional financial protection and flexibility.
Annuities – are contracts issued by an insurance company. These are usually long-term investment options that help protect investors from outliving their income. They may provide guaranteed income for life, access to your assets, and death benefits can be used as a potential legacy to your heirs. Variable annuities carry a greater risk but have higher potential rate of returns. Some benefits of variable annuities are tax-deferred growth in the accumulation phase, a wide range of investment choices, and death benefits. Fixed annuities provide a guaranteed rate of return, tax advantages, and income you cannot outlive.