There are many different types of term insurance policies available. Many policies offer level premiums for the duration of the policy, such as 10, 20, or 30 years. These are often referred to as "level term" policies. This flexibility allows the contract owner to select a policy that will cover a potential short-term need, for example purchasing a policy with a 30-year term to cover the period in which one has a mortgage. Because term policies are generally less expensive than permanent policies, they are generally more affordable and within reach.

Term can be further broken into two groups; a basic non-convertible OR convertible. Convertible term insurance allows you to purchase (or convert to) a cash value permanent policy at any time during the term period, without going through and underwriting physical exam or health questions.

Term insurance is initially much less expensive when compared to permanent life insurance. Unlike most types of permanent insurance, term insurance has no cash value.

While premiums for these level term policies remain level for a set number of years, after this time period the premium increases significantly, making the policy cost prohibitive.

Whole Life insurance appeals to those who desire permanent life insurance protection with guaranteed values and prefer the simplicity and structure of a traditional life product. 

Whole Life insurance is most appropriate for people who want life insurance protection guaranteed to last for a lifetime and for whom level premiums and guaranteed cash value growth are important.  A bonus feature of whole life insurance is the potential to earn dividends which can build extra cash value, increase death benefit, be returned to the client, or be used to pay premiums.

A benefit of Cash Value Permanent Insurance is the Nonforfeiture Options.  Although you can surrender a cash value policy and receive the surrender value (and possibly have a taxable gain), you can also choose to use the surrender value to purchase a Reduced Paid-up Life Insurance Policy or an Extended Term Life Insurance Policy.

However, dividends are NOT guaranteed and can fluctuate from year to year.

Universal Life (UL) is designed for clients and prospects with a low-to-moderate risk tolerance who desire long-term permanent life insurance protection. While UL is first and foremost life insurance and not suitable if there isn’t a need for additional life insurance, this appeals to those interested in accumulated value growth at market rates but with the safety of a guaranteed interest rate.

A nice feature of Universal Life insurance is that you have flexibility in paying your premiums.  You may pay more or less than the suggested premium, but be warned, if you pay less and you fail to pay more back later, your policy may terminate without value before you die.

Universal Life, while more conservative, may not be appropriate for those willing to take on more risk in favor of the potential to build greater cash values.

In addition to Universal Life with guaranteed rates or low to moderate risk market rates, you can choose Variable Universal Life (VUL).  The difference is that variable universal life allows you to invest the cash value in subaccounts that invest in stocks and/or bonds.  You have the potential to grow your cash value more than a regular universal life.

But VUL policies also run the risk of earning less (including negative rates) than guaranteed rates of a universal life.   

Disability Waiver of Benefits – Premiums are waived after a 6 month elimination period if the insured is disabled between ages of 18-65.

Guaranteed Purchase (or increase) Option – Allows the insured to purchase additional insurance at different ages, regardless of their health (no underwriting).

Accidental Death Benefit – Additional insurance amount (that costs less than the policy death benefit) payable if the insured dies as a result of accidental bodily injury.

Living Care Benefit – Allows the insured individual to use a portion of their death benefit for use of Nursing Home Care, Assisted Living, or Home  Health Care.