Comparing Types Of Life Insurance

Term Life

Premium Lower initially. Increases with each renewal.

Higher initially than Term Life. Normally does not increase.

Protection For A specified period. Entire life if you keep the certificate.

Certificate Benefits Death benefits only. Cash Value and Loan Value if Needed Death Benefit.

Advantage to Buyer Low premium outlay. Initially buyer can purchase a larger amount of coverage for a lower premium.

Disadvantages to Buyer Premium increases with age. No cash value.

Available Options May be renewable or convertible to a Whole Life certificate.

Helps buyer with financial discipline. Generally fixed premium amount. Cash value accumulation. Buyer can take loan against certificate.

Costly if you surrender early. Usually no cash value for at least three to five years. May not meet short-term needs.

May pay dividends. May provide a reduced paid-up certificate.