What type of life insurance policy is right for me?

The answer to this question depends on your circumstances and needs.

You should consider the following:

1. Considering your budget, is the premium affordable?
2. Are your life insurance needs temporary or permanent?

Examples of permanent needs are:

• Use of death benefit to pay bills or provide money for loved ones
• Use of death benefit to pay final expenses
• Use of death benefit to provide money for a favourite charity
• Use of death benefit to pay estate taxes
• Fund a business buy/sell agreement or provide key person protection

Examples of temporary needs are:

• Use of death benefit to pay educational expenses
• Use of death benefit to pay off home mortgage
• Use of death benefit to pay off an automobile loan

The two major types of life insurance you can choose are:

• Term life insurance and
• Permanent (or whole) life insurance

Here's some information to help you decide which type is better for you:

There are Two Basic Ways to Pay for Life Insurance

	Term Life Insurance: Usually pay increasing premiums over time Permanent Life Insurance: Usually pay level premiums over time
Both Permanent and Term Life Insurance provide a death benefit that is generally federal income tax free.

Both types of life insurance have strong points that fit different situations.

The "best" policy for you depends on your objectives and budget.

*As long as premiums are paid when due.

Depending on your needs and budget, you may want to consider a combination of some term insurance and some whole life insurance.

Or if you want flexibility in premium payments and death benefit amounts, you may want to consider universal life insurance, which is a type of permanent insurance.

For help in finding a policy that fits your situation and your budget: