1. Types of Life Insurance
Personal Finance

2. Term Life Insurance “Pure” insurance protection
Insures you for a “term” – a period of time
Inexpensive while young
Prohibitively expensive when old
Allows you to purchase maximum insurance for the least cost
It will “run out” at some point
The most typical type of term insurance has level premiums for 10 years

3. Whole Life Insurance Insurance with cash value buildup
The cash buildup is always tax-deferred, and often tax-free
Dividends may be paid, but are not guaranteed
Level premiums for a lifetime – guaranteed
Investment risk is with the insurance company
Moderately expensive while young
Comparatively inexpensive while old
Assures that you will always have some life insurance if you continue to pay the premium

4. Universal Life Insurance
Combination of Whole Life and Term
Less expensive than Whole Life, but fewer guarantees
More expensive than Term, but premiums will hopefully stay level
Investment risk is mostly with the insured
May allow for individual investment selection
Variable Insurance – you can have the premiums invested in stock, bonds, real estate, etc.