Tailored Life Insurance
Term insurance is the least expensive way to purchase a substantial death benefit on a protection amount per premium dollar basis over a specific period of time. term life insurance is life insurance which provides protection at a fixed rate of payments for a limited period of time, such as 20 years. After that period expires, protection at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further protection with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary.
Permanent life insurance is a term sometimes used for life insurance, such as whole life, where the sum assured is due to be paid out at the end of the policy (assuming the policy is kept current) and the policy accrues a cash value. As permanent life insurance program is designed to pay out a benefit in all cases, the premiums are much higher than for term insurance, which can be regarded as pure death benefit with no investment element. A commonly used tactic is to utilize the slow, steady, growth within the cash value of permanent life insurance as a conservative savings strategy to hedge against the risk of the market.