Term Insurance

Term Insurance – The simplest form of insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.

Universal Life

Universal Life – You decide how much you want to put in over and above a minimum premium. The company chooses the investment vehicle, which is generally restricted to bonds and mortgages. The investment and the returns go into a cash-value account, which you can use against premiums or allow to build.

Whole Life 

Whole Life – Similar to term, but you purchase the policy to cover your “whole life” not just a set period. Premiums remain level throughout the life of the policy, and the company invests at least a portion of your premiums. Some firms share investment proceeds with policyholders in the form of a dividend. Many companies will offer “a relatively low guaranteed rate of return,” but in reality pay at a rate in excess of the guarantee.

Variable Life

Variable Life – With a variable policy, there is usually a wider selection of investment products, including stock funds. As with a universal policy, returns on investments can offset the cost of premiums or build in the account. And depending on the type of policy, the beneficiaries will either receive the face value of the policy or the face value plus all or part of the cash account.

Healthcare Plans

An individual or family health insurance plan covers one person, or a family, on one plan.
Most insurance companies offer the same types of managed healthcare plans to individuals that are offered to groups: HMO’s (Healthcare Maintenance Organizations), PPO’s (Preferred Provider Organizations) and POS’s (Point of Service Plan), and generally offer different levels of deductible to keep premiums within budget. Each person or family must determine what coverage, premium, deductible and out of pocket expense will best suit their needs and their family budget.