Do you rent or own your life insurance?

Monday, February 3, 2014

by Scott Greenberg

Let's take a look at the two basic types of life insurance.

YOU'RE A RENTER if you have a term insurance policy. Term insurance, such as level premium tern insurance, provides temporary coverage for a specific period of time (i.e., 20 years) and only offers death benefit protection. There is no cash value component. Premiums for term insurance coverage are initially lower than permanent insurance for the same amount of permanent coverage, so it is popular for families or new businesses.

YOU'RE AN OWNER if you have a permanent insurance policy. Permanent insurance, such as Whole Life and Universal Life, offters lifetime protection, which means that your beneficiaries will receive a death benfit when you die, not if you die. Permanent life insurance usually has a cash value accumulation component that can be used to offset future premiums, act as a personal or corporate sinking fund, or help out when life throws you a financial curveball.

In the end, life insurance is simply a financial tool to help you build the best plan for your family and/or business. Many people find that a combination of both permanent and term coverage helps provide the insurance protection and asset accumulation they need, at a price they can afford. Just remember, it is more important to have the right amount of insurance than the right type.

For more information on renting or owning your life insurance, contact us at or reach out to Scott Greenberg.