Life Insurance
An important part of a sound financial plan, life insurance from EIG and its affiliates provides a valuable death benefit to your beneficiaries upon your death. Your beneficiaries can then use this money to replace some of the income you would have earned or to help pay off debts or other expenses. The two types of life insurance are term and permanent. The one that's right for you depends on many factors, including your budget, the amount of coverage you need, and the length of time you'd like the coverage to last
Term Insurance:
Term Insurance defined: Term life insurance is an insurance policy covering a person's life for a specified number of years.
Term policies typically provide coverage for 10, 20 or 30 years . It is often offered with a guaranteed premium for a particular number of years. Term life does not have accumulated cash value. Accumulated cash value generally is the distinction between term life insurance and whole life or universal life insurance. Cash value policies are initially much more expensive than term life insurance policies for the same amount of coverage.
Permanent Life Insurance:
- Whole Life defined: Whole Life insurance remains in force during the entire lifetime of the policyholder and offers a guaranteed death benefit as well as a guaranteed cash value.
- Universal Life defined: Universal Life insurance is a flexible policy that combines a death benefit with a cash value accumulation component.