Term, Whole and Universal Life Insurance

Get A Quote ›

At Neckerman Insurance Services, we provide all forms of life insurance including low-cost term life, whole life and universal life insurance. But which type of life insurance is right for you and your family?

Term Life

Term life insurance provides coverage for a stated period of time. Term life is the simplest form of life insurance and was developed to provide temporary life insurance on a limited budget. This coverage is perfect for short-term goals, such as paying off your college education, funeral costs or mortgages. The most common terms are 10, 15, 20, and 30 years.

Term life gives you the flexibility to change your policy should your temporary needs turn into permanent goals. You can convert all or some of your term coverage into a permanent policy for a lifetime of coverage.

Whole Life

Whole life is the simplest form of permanent life insurance and is a good option for those with long-range insurance and financial goals. It features lifelong protection with fixed premiums, a guaranteed death benefit payout and cash value that is guaranteed to grow each year. Whole life protects you for your entire life unless you cancel the policy.

Term vs. Whole Life Insurance

 

Term Life

Whole Life

  • “Temporary” life insurance
  • Provides protection for a specified period of time (10, 15, 20, 30 years)
  • Does not build cash value
  • Coverage ends when the policy expires
  • Premiums may increase with age
  • Good for short-term insurance needs
  • “Permanent” life insurance
  • Provides protection for your entire life, as long as the policy is in place
  • Accumulates cash value which can be accessed at any time through policy loans
  • Premiums are set at a certain amount and do not change
  • Premiums are typically higher than term life premiums

Universal Life

Universal life insurance is a form of permanent life insurance and a great option to help your family prepare for the unexpected. It can provide affordable guaranteed protection and a flexible premium. As premiums are paid, you can build your policy’s cash value which grows tax deferred until you need it. You can choose to pay a lower premium and focus more on guaranteed protection that can last a lifetime.

Whole Life vs. Universal Life

 

Whole Life

Universal Life

  • Premiums are not subject to change, so if your financial situation changes and you can no longer pay the premium, you may be faced with unpleasant choices of using your cash value to pay for the insurance or surrendering the policy.
  • Monthly bill and unwavering death benefit.
  • The premium levels nor the death benefit are not set in stone. You are allowed to pay premiums for as much and as often as you choose.
  • More flexibility by managing premium payments.