Term Life Insurance:

Typically, your most common and cheapest form of insurance it is preferred by the majority of individuals who need life insurance. It generally comes in 10, 20, or 30 year increments but can be created for 1 or more years. The death benefit will only be paid out in the event you pass away during the term of the policy so be wise about which route you decide. It also will offer the largest insurance protection for your premium dollar, but unlike whole life will not allow you to build up a cash value. Though most term policies can be renewed for one or more additional terms, if your health were to change then your premiums would correspond as well. So, in that situation you would want to find out what your premium would cost and whether you would lose the ability to renew at a certain age. An additional factor to consider is that while some companies will allow you to keep the policy in force at the same price they will still make you pass a physical exam before they write you a new policy. There is also the option of trading in your policy for cash value during the conversion period regardless of health. However, in this scenario premiums would be higher than if you were already just paying for term insurance.


Whole Life Insurance:

Unlike term, whole life is infinite. Whole contains both insurance and investment components where the insurance portion will pay a predetermined amount when the insured individual dies. The investment component will build an accumulated cash value that the individual can borrow against or withdraw. Typically, whole life will provide policyholders with the ability to accumulate wealth as regular premium payments cover insurance costs. It also contributes to equity growth in the form of a savings account while dividends or interest build up in the account tax deferred. The major difference from term life is that the death benefit goes for the entire life of the insured so your beneficiary is guaranteed a sum of money. In fact, this form of insurance can be used for individuals who have dependent family members, need to liquidate business debts, fund requests from charities, or to be sure cash is quickly available to surviving family. Whole life also has a living benefit and an accrual of cash for when the individual passes, and the premium will stay level throughout the life of the policy.


Indexed Universal Life Insurance:

This form of insurance allows the owner to allocate cash value amounts to either a fixed account or equity index account. This type of policy offers a variety of well-known indexes like the S&P 500 and the Nasdaq 100 to use positively when the market goes up. These policies are more volatile than traditional fixed UL’s, but are less risky than variable universal life policies because no money is invested in equity positions. IUL policies offer tax-deferred cash accumulation for retirement while also maintaining a death benefit. People who need permanent life insurance protection but want possible cash accumulation in the form of an equity index use IUL’s as key person insurance for owners, premium financing, or estate planning. Typically, IULs are seen as advanced life insurance solutions in that they are difficult to understand and are generally reserved for sophisticated buyers. They are however viable for those looking for the security of a fixed universal life policy with the potential to earn additional interest.


Return of Premium Insurance:

Simply put, its insurance that will pay your premium back to you at the end of the period you selected. The key here is that as long as you live to the end of the term selected you will have the option to get your money back tax free while your cash value grows assuming you pay your premiums. In other words, its guaranteed insurance protection with a payback at the end. You also get a fixed monthly premium that doesn’t change during the selected term even as you get older or if your health declines. The most important piece is that it guarantees full benefits to your loved ones which can be used for income, household expenses, taxes, debt, or even college tuition. Then at the end of the level premium period you can choose to surrender the policy for cash value or take advantage of the extended coverage options. Many individuals will choose this option when they are looking for solid coverage that includes a death benefit with the opportunity to have premiums returned to enjoy at the end of the premium term.


Disability Insurance:

Disability can protect your financial well-being by providing supplementary income in the event of illness or accident. Typically, employers will offer this as a part of their benefits package, but if they don’t you can purchase personal disability insurance yourself. Benefits are traditionally provided on a monthly basis so the individual can maintain their standard of living and continue to pay their regular expenses. While you may not believe it will happen to you the statistical likelihood of you becoming injured or sick and not being able to work are fairly high. Regardless of your age it’s important to put this in perspective because one mistake can flip your world upside down and you want to be sure you are prepared. Due to this disability insurance is very useful and can be tailored to fit your specific working situation.


Long Term Care Insurance:

Traditionally coverage that provides nursing-home care, personal or adult daycare for individuals above 65 or with chronic or disabling condition that needs constant supervision. This form of insurance ensures more flexibility and options than many public assistance programs. Long-term care is typically very expensive which is why most people need this form of insurance. In fact, nursing facilities can cost $80K+ a year with occasional home care at $9K+ a year. Most LTC policies will cover a specific dollar amount for each day sent in a nursing home or for a visit in your home. There are also a few other factors to consider including your age and how that will affect premium amounts along with inflation protection and understanding how the deductible is defined in the policy. So, when you look into a LTC policy be sure to fully understand the policy by comparing it to others to be sure you have a policy to best fit your needs.


Business Insurance:

Essentially protects your business from losses due to events that may occur during the normal course of business. Companies insurance needs are based on potential risks, which can vary depending on the environment in which the company operates in. It’s especially important for small business owners to consider and evaluate business insurance needs because they have personal financial exposure in the event of loss. There are a few key forms of business insurance which include key person, general liability, and product liability. Key person insurance will allow you to replace the individual using the benefit or any expense that can help replace the expertise of the deceased. There is also general liability insurance which protects the business against liability claims, negligence, manufacturing or personnel error, bodily injury, or even property damage. Finally, product liability will protect you against faulty products, injury, or death from the use of faulty products. While business insurance may increase costs across the business the replacement costs are considerably higher which make purchasing business insurance a wise decision for any business owner.