LIFE INSURANCE

 A life insurance policy is a contract between a person and the insurance company. The insured pays premiums on the policy. If the policyholder should die, the company sends a claim or death benefit to the beneficiaries. There are two basic types of life insurance. One of these is term insurance, and the other one is permanent life Insurance.
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Term Insurance

​Term insurance  provides a death benefit for a limited period of time. It’s generally the least expensive option and provides protection for a pre-defined period of time, or term. These typically range in five-year increments up to a maximum of 30 years. Term insurance is considered a death benefits only insurance.
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Permanent Life Insurance

​Permanent life insurance can provide a death benefit and the potential to build policy cash value that you can access during your lifetime using policy loans and withdrawals.* Permanent insurance can also offer the flexibility to increase or decrease your death benefit as your needs change, as well as the potential to reduce or skip premium payments.**+

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*Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.
**It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
+Source: National Life Group