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There are two basic types of life insurance: term and permanent. Each should be considered carefully to determine which best fits your individual needs.


Advantages of Term


  • Lower cost protection in early years
  • Customized for coverage to last for a specific number of years
  • The option to exchange the policy for permanent coverage without having to show evidence of good health


Advantages of Permanent


  • Lower cost in later years
  • Permanent protection
  • Level premiums
  • Accumulation of cash for emergencies, college education, retirement supplement
  • Tax-deferred wealth accumulation
  • Tax-free income distribution
  • Flexibility
  • Coverage without paying premiums by using various options


Disadvantages of Term


  • Higher cost protection in later years
  • Increasing premiums
  • No equity or cash value savings
  • Failure to pay premiums ends coverage


Disadvantages of Permanent


  • Higher initial cost
  • Future dividends and current interest rates not guaranteed