Term Insurance is a form of life insurance that has no or very little cash value.  It is sometimes described as renting a policy until the need passes or until you can afford to buy a permanent policy.

Types of term policies:

Level term for a specified number of years

Annually renewable term --each year the premium increases

Decreasing term -- often called mortgage protector, is probably the most expensive type of term to buy as the value goes down each year, but the premium remains level.

 Term with Return of Premium (ROP) Rider -- you pay more than for standard term, but at the end of the period certain, if you are still living, the company will return the premium to you to use as you see fit.

PERMANENT INSURANCE

Just as there are many types of term insurance, and the above list is by no means exhaustive, there are many types of Permanent Insurance Policies.

We are firm believers in the universal life policy concept. We have described it as the most creative tool for men and women to use in their financial planning. Its mortality charges are less than any of the other types, it cannot lapse so long as there is money in it, There are four or five ways you can use it to obtain use fof the funds in it without having to die, and without creating a taxable event. And, there are a couple ways you can use it to minimize a taxable event.

Whole Life - This is one of the most used products up until about 1980. You pay the premium for a designated period, usually until you are 100 years old. It builds cash values so that they equal the face value at maturity.

Universal Life is a much more versitile permanent plan of life insurance. As long as it contains a cash balance in it, it cannot lapse. It can be used for many purposes, not the least of which is to supplement a retirement plan in later years. I firmly believe it is the most creative financial vehicle ever devised for the average family. To learn why, call

1-818-717-0918.