How the payout can help
The benefit can be used to clear outstanding debts such as a mortgage or credit cards, cover everyday living expenses, or pay for funeral costs. There are many kinds of life insurance, but they generally fall into two categories: term and permanent (whole) life.
Term life insurance
Term insurance is designed for temporary needs. It provides protection for a specific period — the “term” — and generally pays only if you die during that period. It often makes sense when your need for coverage ends at a known point, such as when your children finish college or your mortgage is paid off. Term life is typically less expensive than whole life.
Permanent (whole) life insurance
Permanent insurance provides lifelong protection. As long as premiums are paid and no loans, withdrawals or surrenders are taken, the full face amount is paid to your beneficiaries. Because it’s designed to last a lifetime, permanent life insurance also builds cash value.
Which is right for you?
Neither type is better for everyone — the right choice depends on your circumstances and financial goals. Talk with one of our licensed life insurance professionals to find coverage tailored to your needs.
This guide is general information, not a policy. Coverage, limits and exclusions vary by carrier and state — your policy documents are what apply. Ask us about your specific situation.