Get the type of insurance that best meets your needs. The chart below summarizes the types of insurance available and how each is most commonly used.
| Term |
- Insurance coverage guaranteed for a pre-defined term, typically 5, 10 or 20 years
- Premiums stay the same for length of the term
- Renewal of term is guaranteed, but at a higher premium rate
- Coverage ends at a specified age (often age 75 to 85)
- Lowest cost form of insurance
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- Often used during working years to provide the capital needed to replace income when a key breadwinner dies
- Coverage is not guaranteed for life, so may not be appropriate for estate planning goals
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| Term to 100 |
- Permanent insurance guaranteed for life
- Premiums stay the same until age 100, or may in some cases be payable over 20 years
- Typically has no savings component or cash value
- Lowest cost form of permanent insurance
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- Pre-retirement – can be used to replace income if you were to die unexpectedly
- Retirement – can be used to cover your estate’s tax liability or add to your estate’s value
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| Universal life |
- Permanent insurance guaranteed for life
- Premiums are adjustable depending on savings and insurance needs
- Policy provides both insurance protection and tax-sheltered savings
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- Retirement – savings can be used to cover ongoing premiums, increase the policy’s death benefit or used as loan collateral to provide money in retirement
- Estate – can be used to cover your estate’s tax liability or add to your estate’s value
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| Whole life |
- Permanent insurance guaranteed for life
- Premiums stay the same for life
- Policy has a cash value that you can borrow against, or cash out if you terminate the policy
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- Retirement – savings can be used as loan collateral to provide money in retirement, or withdrawn if you end the policy
- Estate – can be used to cover your estate’s tax liability or enhance your estate’s value
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