Summary |
Low cost, used for short term protection during times of high financial risk |
It is a most Stable protection policy without the complexities of universal life. The long term, is a better option of financial investment with long term protection than buying and renewing term insurance again anad again. |
It is a more flexible option As this type of insurance is combination of long term life insurance with tax-deferred savings |
Duration |
Coverage will end at a certain age |
Guaranteed lifetime protection |
Typically lifetime protection |
Amount of insurance |
Once chosen, you can't change it |
Once chosen, you can't change it |
Choice of level or increasing amount of insurance |
Cost |
though initial cost is low, but cost gradually increase each 5, 10 or 20 years. Cost can rise dramatically in later years. |
Typically guaranteed not to change for the life of the policy but some products are adjustable.
when you're younger Premiums is usually higher than term insurance but when you're older will be lower than term .
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Cost of the insurance may be:
- guaranteed and level,
- increase each year or
- be a combination of both.
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Cash value |
None |
A cash value usually accumulates, and is paid to you upon cancellation. |
Payments made, in excess of required cost of insurance, can be invested and grow tax-deferred. |
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More details on term insurance |
More details on permanent insurance |
More details on universal life insurance |