Determining the type of life insurance to buy depends on your situation and the financial goals you wish to achieve.

Family Protection

Many individuals purchase life insurance to protect their loved ones from unnecessary financial burdens upon their death. For this goal, term insurance is usually a good choice.

Term life insurance offers coverage for a limited period of time. Many individuals purchase this coverage knowing that at some point in the future they will have accumulated sufficient assets to care for their loved ones upon their death. This is why when purchasing term insurance it is important to consider how long you will need the coverage, or how long it will take you to build an estate that will provide for your family's needs when you die.

Level term insurance offers guaranteed premium rates for a specific amount of time, often ten or twenty years. Increasing term insurance does not guarantee level premium rates, and the cost of premiums will go up over the life of the contract.

Term vs. Level Term

This visual representation is for illustrative purposes only
and does not reflect a specific policy.

Things to Consider When Analyzing an Estate

If you hope to pass your estate to the next generation, you may use life insurance to achieve your objective. Numerous strategies are employed when creating an estate, all based upon your specific financial situation.

Cash value life insurance is used often in estate tax planning because other financial goals, in addition to family protection, are achieved. For example, individuals who wish to use a life insurance policy to protect the value of their taxable estates may choose a cash value policy owned by a trust.

For more information on how life insurance can be used to pass an estate to the next generation, please contact us , or visit the Estate Strategies section.