As your consider the wide range of life insurance
products that are available, you may wonder what type
of policy fits your needs now, and how you should plan
for the future. A good way to start is to ask yourself
why you are buying life insurance, and how will it
satisfy your personal and family financial security
requirements. Do you want insurance to cover final
expenses? A new home or mortgage? A college education?
A business investment? Your retirement? Once you answer
these questions, look at the 3 basic types of coverage, whole
life, universal life,
and term life and determine
which suits your needs.
Online quotes are available for term life only. We
have licensed benefits representatives that are available
to assist you in evaluating you life insurance needs.
For a whole life or universal life quote or for personal
assistance, please contact our benefits department
at benefits@tmib.com or
call 800-775-TMIB.
Whole Life — This
coverage typically remains in force to the insured's
age 100 as long as premiums are paid. You pay the same
premiums every year. The premiums are initially higher
than what you would pay for the same amount of term
life insurance. However, they are less than the premiums
you would eventually pay if you were to continue renewing
that same term policy beyond its designated term.
An important feature of any type of cash value life
insurance policy is its ability to build a sum of money
inside the policy over its lifetime. You have access
to this cash value and can generally either take it
as cash or use it to buy some continuing insurance
protection. The amount of the cash value depends on
the kind of policy you have, premiums you are paying
into it, and how long you have owned it. You may also
use your policy cash value as collateral for a loan.
Policy surrenders and loans incur charges and/or interest.
They can also affect policy values and the death benefit.
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Universal Life — This
coverage is designed to be a permanent policy. It is
different from traditional policies in that it allows
the policyowner to vary the amount and timing of premium
payments (subject to satisfying policy premium minimums
to maintain the policy), and increase or decrease the
death benefit (subject to underwriting for an increase).
Cash values accumulate based on premium payments and
current interest rates that the carrier is offering.
An important feature of any type of cash value life
insurance policy is its ability to build a sum of money
inside the policy over its lifetime. You have access
to this cash value and can generally either take it
as cash or use it to buy some continuing insurance
protection. The amount of the cash value depends on
the kind of policy you have, premiums you are paying
into it, and how long you have owned it. You may also
use your policy cash value as collateral for a loan.
Policy surrenders and loans incur charges and/or interest.
They can also affect policy values and the death benefit.
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Term Life — This
coverage provides financial protection for a limited,
specified
period of time and is the least expensive form of life
insurance coverage. The death benefit face value is
paid only if the insured dies within the specified
term. Term insurance has no cash value. Most all carriers
offer term insurance with the option to convert it
to a permanent policy.
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