A spousal discount gives you a discount on both life insurance policies if both husband and wife or two business partners purchase life insurance at the same time.

Life Insurance

Should I buy term or permanent life insurance?

The type of life insurance you need is dependent upon your particular needs. In most cases, term life insurance is appropriate and more cost effective. It serves the purpose with a fraction of the cost of permanent life insurance.

What is the difference between whole life and universal life insurance?

Both are forms of permanent life insurance. However, universal life has flexible premiums and an adjustable death benefit. Whole life insurance premiums are fixed level and the death benefit is not adjustable. Also, another difference is that the universal life cash value is interest sensitive (if the interest rate goes up so will the cash value). A whole life cash value is not very interest sensitive.

What is the advantage of level term life insurance vs. yearly renewable term life insurance?

The advantage of level term life insurance is that the premiums remain level over a specified period of time. Yearly renewable term life insurance has a lower initial premium but the premium rises every year. Yearly renewable term life insurance is only cost effective for a few years because of rising premiums. If you need term insurance protection for more than few years, then a level term life insurance policy can be cost effective.

What riders/options are available on life insurance policies?

• Conversion feature- allows the owner of a term life insurance policy to exchange the policy to a permanent life plan with out evidence of insurability.
• Spousal Discount- if both husband and wife or two business partners purchase life insurance at the same time, then a discount will be applied on the two policies.
• Children insurance option- provides term life insurance coverage on each child of the insured’s family.
• Accidental Death benefit- an additional death benefit will be paid if death occurred by accidental means.

Should I purchase life insurance on my spouse?

In most cases, yes. At the very least, if your spouse contributes to the family’s annual income then adequate protection would be needed to supplement their income should they die. If your spouse does not have an income but is a homemaker, then the life insurance protection may be needed to cover daycare and other costs associated with the loss of a parent.