Term Life Insurance | Universal Life Insurance | Whole Life Insurance
Term life? Universal life? Whole life?
Buying life insurance can be confusing. Call AAA Insurance Services. We'll assess your coverage needs and prepare a plan individualized for you.
Term Life Insurance
Term life insurance covers you for a "term" of one or more years. It pays a death benefit only if you die in that term. Term insurance generally provides the largest death protection for your premium dollar.
Premiums can be locked in for 5, 10, 15, 20 or 30 years, depending on your age. During those years that you have locked it in for, the premiums cannot go up or down. They remain level regardless of your age.
Universal Life Insurance
Universal Life lets you vary your premium payments every year, and even skip a payment. The premiums you pay (less expense charges) go into a policy account that earns interest and charges for insurance are deducted from the account.
Whole Life Insurance
Whole Life covers you for as long as you live. You pay the same premium for as long as you live. The premiums can be several times higher than you would pay for term insurance. But smaller than the premiums you would pay for term insurance in the later years.
Whole life policies develop cash values. If you stop paying premiums, you can take the cash or you can use the cash value to buy continuing insurance protection for a limited time or reduced amount. You may borrow against the cash values by taking a policy loan. Any loan and interest on the loan that you do not pay back will be deducted from the benefits if you die, or from the cash value if you stop paying premiums.
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