Start with the need for protection
Life insurance can provide a death benefit to beneficiaries if the insured dies while coverage is in force. Income replacement, mortgage obligations, dependents and business commitments are common considerations when determining the amount and duration of protection.
Temporary and permanent coverage
Term insurance provides coverage for a specified period and generally does not build cash value. Permanent policies, including whole life and universal life, are intended for longer-term coverage and may accumulate cash value, subject to premiums and policy terms.
Look beyond the illustration
Compare guaranteed and non-guaranteed values, premiums, exclusions and renewal provisions. Loans and withdrawals from permanent policies can reduce benefits, contribute to lapse and have tax consequences. An existing-policy review can help clarify how coverage aligns with current needs.
Further reading
For educational purposes only. Products and strategies vary by individual circumstances. Consult qualified legal and tax professionals where appropriate.
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