How do you know what type of life insurance policy is right for you? While the choice may not always be straightforward, some policies can lend themselves to certain life stages or specific goals better than others. The information below offers a simple breakdown of three general types of policies that NMB offers to help you consider what may be the most appropriate for your situation. Contact your district representative to learn more!
Definition:
Term Life Insurance
Term life insurance provides affordable coverage for a specified period of time. If protecting your family on a budget seems like an overwhelming task, term insurance may be an answer.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance. Policies are designed to cover the insured for his or her entire lifetime.
Universal Life Insurance
Universal life insurance is a type of life insurance policy that offers adjustable premiums and an adjustable death benefit. It also has potential to build cash value. These features make it ideal for those who want a life insurance program that can change along with their needs. Because of its flexibility, universal life insurance can be a great tool for achieving a wide variety of financial goals.
| Term Life Insurance | |
|---|---|
| Intended Coverage Period | Specified period such as 15 or 20 years |
| Payment Structure | Fixed, level for selected term period |
| Death Benefit | Fixed, guaranteed for select term |
| Riders Available | Yes |
| Cost (during intended coverage period) | Lowest |
| Typically Pays Dividends | No |
| Cash Value | No |
| Ideal For | Meeting a temporary need |
| Universal Life Insurance | |
| Intended Coverage Period | Lifetime |
| Payment Structure | Flexible |
| Death Benefit | Adjustable |
| Riders Available | Yes |
| Cost (during intended coverage period) | Typically moderate |
| Typically Pays Dividends | No |
| Cash Value | Yes |
| Ideal For | Flexibility |
| Whole Life Insurance | |
| Intended Coverage Period | Lifetime |
| Payment Structure | Fixed, level |
| Death Benefit | Fixed, guaranteed for life |
| Riders Available | Yes |
| Cost (during intended coverage period) | Typically highest |
| Typically Pays Dividends | Yes |
| Cash Value | Yes |
| Ideal For | Predictable, lifetime coverage |