Life Insurance
life insurance serves as a crucial financial safety net for your loved ones. To help you
decide which type is right for you, here’s a clear overview of how life insurance works and
the key differences between term and permanent life insurance:
Why Life Insurance Matters
A life insurance policy pays a tax-free death benefit to your beneficiaries, which can be
used to:
• Replace lost income
• Pay off debts (e.g. mortgage, student loans, credit cards)
• Fund children’s education
• Cover funeral or medical expenses
• Maintain the family’s standard of living
Two Main Types of Life Insurance
Most dental plans follow a 100-80-50 coverage structure:
|
Type
|
Term Life Insurance
|
Permanent Life Insurance
|
|---|---|---|
|
Coverage
Duration
|
Fixed period (e.g. 10, 20, 30 years)
|
Lifetime coverage
|
|
Cost
|
Lower premiums
|
Higher premiums
|
|
Cash Value
|
None
|
Builds cash value over time
|
|
Best For
|
Income replacement during working
years
|
Estate planning, lifelong dependents, tax-sheltered
investment
|
Term Life
- Affordable and straightforward
- Ideal if you only need protection while your children are young or until a mortgage is
paid off - No payout if you outlive the term
Permanent Life
Includes types like whole life, universal life, and variable life
- More expensive, but builds cash value you can borrow from
- Often used for long-term financial planning
How to Decide
Ask yourself:
- Does someone rely on your income?
- How long will they need financial support?
- Can you afford higher premiums for lifetime coverage?
- Are you interested in the investment or savings component?
Get Insurance that is right for you ?
Would you like help calculating how much life insurance you might need or comparing term vs. whole life based on your goals? Call 844-735-5098 to speak to License Agent
Would you like help calculating how much life insurance you might need or comparing term vs. whole life based on your goals? Call 844-735-5098 to speak to License Agent