Life Insurance Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

Do You Need Life Insurance? Simple Rule If someone would be significantly hurt financially by your death, you need life insurance.

How Much Do You Need Another Clip

Two Types of Life Insurance TermPermanent Mortality CostYes Policy Expense CostYes Cash ValueNoYes LengthSpecific Term (e.g., 15, 30 years) Covers your entire life CostInexpensiveMore expensive than term

Which Type– Term or Permanent? For most, term insurance will do the trick because if all goes well, you will only need life insurance for a set time period (e.g., until your kids graduate from college) cheaper– buy term and invest the difference Permanent life insurance could be useful for those needing insurance up to death for purposes such as paying estate taxes or supporting an adult child with a disability

Three Main Types of Term Annual RenewableFixed-rate level Term Level Decreasing Term Mortality CostGoes up each year Annual CoverageStays the sameStays the SameDeclines (e.g., 25 year decreases 4% each year) LengthsAnnualTypically, up to 30 years Typically, 15 – 30 years RenewableBy paying premium each year 1.Renewed without medical proof 2.Renew requires medical proof Usually not PremiumincreasesLocked in pricing from 5-30 years in 5 year increments Stays the same

Permanent Life Insurance Types Universal Life: variable cash value yield Whole Life: fixed cash value yield Variable Life: variable cash value yield– many investment options including the stock market There are other differences that require additional research if you consider a permanent policy.