Securing Your Family’s Financial Future

The Value of Life Insurance

Whether you’re a stay-at-home or working mom, the contributions you make to your family couldn’t easily be replaced if anything happened to you. That’s why life insurance should be part of your financial plan. Life insurance is even more important if you’re a single mother who is the major source of financial support for your children.

There are two types of life insurance you can purchase: term and permanent. The type that makes the most sense for you depends on a number of things, including your budget, the amount of coverage you need, and how long you want the coverage to last.

Term Life Insurance

Often the most affordable life insurance you can buy, Traditional or Return of Premium Term life insurance provides you with coverage for a specific number of years. While both can help ensure that your family will be able to meet expenses such as college tuition, medical insurance, and mortgage payments, there are some differences:

• This coverage is usually less expensive than permanent insurance at the start, giving you the opportunity to get more coverage.
• Premiums are generally fixed during the term of coverage.
• In some cases, you can convert your policy to permanent life insurance without having to take another medical examination.
• This policy doesn’t build cash value.
  
  

• You get back your premiums if you outlive the term of coverage.
  
• The money that’s returned is yours to use however you want to.
  
• Premiums may be higher than that of traditional term life insurance.

Permanent Life Insurance

Whole Life Insurance

• This coverage provides a guaranteed death benefit with guaranteed scheduled premiums.
• Cash value accumulates at a set fixed rate.
• Some policies offer non-guaranteed dividends that may increase the death benefit and cash value. Those that pay dividends may offer the potential for a larger cash value.
• Premiums are generally more expensive than that of universal or variable life insurance.

Universal Life Insurance

• If your financial situation changes, you have the flexibility to change your premiums or the amount of coverage.
• Cash value accumulates at a guaranteed minimum interest rate. Additional non-guaranteed interest may be credited to the cash value.
• The policy’s cash value is not guaranteed because of changing interest rates.
• You can borrow against the cash value of the policy.*

Variable Life Insurance

• Cash values can go up or down, depending on the variable investment options you select based on your financial goals and risk tolerance.
  
• If your financial situation changes, you have the flexibility to change your premiums or the amount of coverage.
  
• You can withdraw or borrow against the cash value of the policy.^*
• The policy is not guaranteed to build cash value.
  
  

Life insurance may seem complicated because of the many options available, but speaking with a licensed financial professional can help you decide which policy is best for you.