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Life insurance

Term or whole? Let’s find your fit.

There are two main types of life insurance, and it’s common to wonder which is right for you. In the end, the question that matters is: which one best meets your needs?

Term versus whole life coverage over a lifetimeTerm life gives a larger death benefit for a set period, here from age 35 to 55, and can then be renewed at rising rates. Whole life gives a level death benefit for life, with cash value that grows over time. 30405060708090Age TERM: MORE COVERAGE PER DOLLAR renewable at rising rates WHOLE LIFE: COVERAGE FOR LIFE cash value

Term gives the most coverage for the money for a set number of years. Whole life costs more, lasts as long as premiums are paid, and builds cash value.

Illustration only: not to scale and not based on a specific policy.

Term life

Why consider term life?

  • Cost-effective coverage compared with whole life
  • Ideal for coverage over a specific period of time
  • Supplements whole life insurance
  • Can be renewed at annually increasing rates without proving insurability
  • Option to convert to whole life later
  • Income-tax-free death benefit

Term life provides the maximum amount of coverage for the minimum cost, and gives your beneficiary income replacement at a time when it’s needed most.

Whole life

Why consider whole life?

  • Lifetime coverage as long as premiums are paid
  • Tax-deferred growth of policy cash values
  • Liquidity through policy loans
  • Can help supplement retirement income
  • A stable financial asset on your balance sheet
  • Income-tax-free death benefit

Whole life can be an excellent foundation for a strong financial plan because of its simplicity, predictability and guarantees.

Whole life

Three guarantees. One asset.

Though today’s financial marketplace can change quickly, whole life insurance has remained a stable part of a financial plan. It combines three guarantees into one powerful, effective asset.

Death benefitIncome-tax-free for your beneficiaries
Fixed premiumsSet when you buy the policy
Cash valueGrows tax-deferred; borrow against it

Guarantees are dependent on the claims-paying ability of the issuing company. Policy loans reduce the death benefit and cash value.

Sunbeams breaking through tall white clouds in a blue sky

Also from John

Final expense coverage.

Can’t qualify for a traditional policy? Final expense life insurance through Lincoln Heritage covers a funeral and burial, and many people can be covered the same day.

Talk to John

Which type of life insurance is right for you?

Contact John to talk it through. He will compare options across companies and explain the trade-offs in plain English.