While annuities help you from running out of money in retirement, life insurance helps your family and loved ones maintain their standard of living upon your death.
The most difficult question to answer is, how much life insurance do I need? In order not to purchase too little or too much, you need to consider
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The difference between your expenses and your expected income is the shortfall that life insurance can address.
The type that is best varies with the specific situation. The following types of individual life insurance policies are available:
Term Insurance: This provides temporary protection for a specific number of years. Premiums increase as the insured grows older.
Whole Life Insurance: Insurance with level premiums that includes a built-in savings component
Universal Life Insurance: Insurance that is basically a whole life policy divided into two components: death protection and cash value. The death protection takes the form of one-year renewable term insurance and the cash value account realizes current interest rates. This provides the policyholder with greater flexibility as he/she can increase or decrease the death benefit.
Variable Life Insurance: Insurance that is a whole life policy (general account) with a separate account consisting of primarily common stocks and other securities-based investments. The separate account has considerable investment risk to the policyholder.
Variable Universal Life Insurance: Insurance that is a combination of variable life insurance and universal life insurance. The policy is variable in that the benefits vary according to the investments backed in the contract. The policy also has flexible premiums, adjustable benefits, term insurance and tax-deferred savings.
Guarantees offered by insurance company and their claims paying ability not Tidewater Financial Company, Bruce F. Williams or Investors Security Company, Inc.
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