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The simplest and least expensive form of life insurance coverage is term life insurance. It provides death benefit coverage at a guaranteed premium for a specific period of time - usually 10 to 30 years depending upon which product you choose.
Since premiums are low as compared to other types of life insurance, term life insurance is ideal for new families seeking economical protection.
While term life insurance doesn't include the ability to accumulate cash value, it can help a family maintain its lifestyle, cover college tuition and pay off a mortgage in the event of the insured person's death.
Who should consider life insurance?
- Younger individuals and new families
- Those seeking additional, inexpensive coverage to complement existing policies
- Someone seeking short-term coverage - for example, to qualify for a business loan
Key benefits:
- Affordability - for younger policyholders, it's the least expensive life insurance coverage
- Low risk - you know exactly what you're getting with term life insurance
- Adaptability - many policies allow you to convert to universal life or whole life insurance policy at a later date
How term life insurance differs from other life insurance policies:
- Provides protection only during the term of the policy, then the coverage ends
- Offers a death benefit only; does not allow for cash value accumulation
- Has a low premium that is guaranteed for a selected period. At the end of the stated guaranteed period, premiums generally increase significantly to keep the policy in effect.
Like term life insurance, whole life insurance pays a fixed death benefit for a fixed premium amount. Generally, if the premium is paid on time, the policy will remain in force. But, unlike term life insurance which terminates at the end of the specific period, whole life insurance continues to cover the insured throughout his or her life.
In addition, whole life insurance has a cash value feature that is guaranteed. These cash values are accessible to the policyholder through policy loans for emergencies or other financial needs. Some whole life insurance policies may generate cash values greater than the guaranteed amount, depending on interest crediting rates and how the market performs.
Who should consider whole life insurance?
- People looking for guaranteed death benefits, guaranteed premiums and guaranteed cash value
- Those seeking fixed premium payments and not in need of premium flexibility
Key benefits:
- Offers guaranteed, predetermined death benefit with guaranteed cash values
- Policyholders can borrow money against the policy cash value. However, unpaid loans can affect the available death benefit and have certain tax implications if the policy is surrendered.
- Premiums are fixed and guaranteed not to increase
How it differs from other life insurance policies:
- Allows for cash value growth on a guaranteed basis
- The policyholder may elect to discontinue coverage and surrender the policy for the cash value, if any, or use existing cash value to purchase a policy with a lower death benefit amount that requires no additional premium payments.
- The policy may mature for its cash value at a specific time (e.g., age 95). Often the cash values are guaranteed to equal the policy death benefit at maturity.
- Provides for fixed premium payments throughout the life of the policy, although some policies offer options to pay a higher amount of premium for a shorter period of time.
An annuity is the only investment that can guarantee you payments for the rest of your life.
Planning for retirement is one of the biggest challenges facing Americans today.With concerns related to Social Security and the decline in the number of corporate pension plans, you may be shouldering more of the responsibility for your retirement income.
That's why it's important to consider annuities. Annuities are long-term financial contracts issued by insurance companies that are designed to provide a series of payments to a named individual in exchange for a premium or a series of premiums.
Learn more about the different types of annuities offered by the Genworth Financial family of companies:
- Variable Annuities
A long-term investment with a rate of return tied to market performance. Future income payments may be fixed or variable.
- Fixed Annuities
A long-term income vehicle that guarantees you receive no less than a minimum rate of interest for a specified period of time. Future income payments are also based on a fixed rate of return.
- Immediate Annuities
Income vehicles designed to provide payments within a year of paying premiums.
We have access to the following Life & Annuity Companies through our membership in The Marketing Alliance (TMA)::
PWL = Participating WholeLlife
ISWL = Interest Sensitive Whole Life
GCWL = Guaranteed Cost Whole Life
UL = Universal Life
SWL = Survivorship Whole Life
SUL = Survivorship Universal Live |
DA = Deferred Annuities
IA = Immediate Annuities
LTC = Long Term Care
SI = Simplified Issue Life
T = Term |
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