Life Insurance is needed to cover any outstanding debt
in the event of your death and provide security to your family and
heirs.
There are two basic types of Life Insurance available:
Term Life provides coverage for a limited
amount of time, usually 10 to 30 years. These policies are generally
less expensive and provide a guaranteed death benefit. The death
benefit is paid only if you die within the specified term of the
policy. Term life policies do not accumulate any cash value.
Whole Life provides coverage for fixed period
of time with a guaranteed premium and a guaranteed death
benefit. While also offering flexible planning, a cash value and a
variety of dividend options. Whole life offers flexibility when used
with buy/sell agreements, key employee plans, split dollar and executive
bonus plans (section 162).
