Term Life
A type of life insurance policy that provides coverage for a specified period, or "term," such as 10, 20, or 30 years. If the insured person passes away during the term, the policy pays a death benefit to the beneficiaries.
Whole Life
A permanent policy that builds cash value over time. As long as the premiums are current, the policy remains active for the entire life of the policyholder, and the beneficiaries will receive a set death benefit in the event of the insured's death.
Indexed Universal Life (IUL)
A type of permanent life insurance that combines a death benefit with a cash value component. It offers flexible premium payments, allowing policyholders to adjust their contributions. The cash value can grow over time, and policyholders can borrow against it or withdraw funds, often with potential tax advantages. This insurance product is designed to provide both income protection for beneficiaries and a savings mechanism for the policyholder.
Mortgage Protection
A type of term life insurance designed to pay off a mortgage in the event of the borrower's death, disability, or sometimes critical illness. The purpose of this coverage is to ensure that the borrower's family can remain in their home and is not burdened with the mortgage debt if the borrower is unable to make payments due to unforeseen circumstances. This can provide peace of mind for homeowners, knowing that their loved ones will be protected from financial strain related to home ownership.
Final Expense (FE)
A type of whole life insurance that is specifically marketed to pay off someone's "final expenses" (burial, cremation, memorial, funeral costs).