Life insurance gap
If you don’t have any life insurance at all, or you’re concerned that you don’t have enough death benefit protection to cover your family’s needs, the following products can help you fill the life insurance gap in your financial strategy.
Term life insurance:
The bodyguard of life insurance
Like a bodyguard you hope you never have to use, term's sole purpose is to protect your family or beneficiaries in case anything happens to you.
If you're looking for some basic, straightforward protection, term life insurance may be the way to go. Pay your premium over the agreed upon term, and in return you'll receive death benefit protection. Once the term is up, the policy is terminated. The bodyguard calls it a day.
The amount of death benefit your beneficiaries receive will depend on how much you purchase. Your financial professional can help you determine how much death benefit you need.
Term insurance can help you prepare financially for being diagnosed with a qualifying illness.
In addition to offering death benefit protection, some term products may also include accelerated death benefits. These benefits allow the policyowner to access a portion of the death benefit while living, subject to eligibility requirements.
Term is usually the most affordable form of life insurance, often compared to the cost of a couple cups of coffee - much more affordable than a personal bodyguard.
Guaranteed universal life:
Life insurance for the long haul
Guaranteed universal life (GUL) insurance is similar to term life insurance because its sole purpose is to provide death benefit protection. However, unlike term, GUL can provide you with guaranteed death benefit protection for the duration of your life (subject to premium payment requirements), or for the amount of time that you and your financial professional determine you need.
One of the best things about GUL is that the premium is fixed, so the amount you pay stays the same for your entire life, as long as you continue to meet the minimum payment requirements on time to maintain the guaranteed level premium. A missed or late payment can affect the guaranteed premium.
If you're looking for death benefit protection for the long haul, GUL may be right for you.