Life insurance typically provides money to beneficiaries after an insured loved one dies. Most employer sponsored life benefits are only in place while you work for a given employer. The Ohio Department of Insurance urges consumers to regularly review their need to secure life insurance as part of their financial and estate planning.

Today there are three primary types of life insurance and some hybrid types that combine elements of two of the three main plans. The three types are as follow:

  • Term life provides life insurance protection for a specified term of years for a specified premium. The policy does not accumulate any cash value. Term insurance premiums are typically the lowest premium cost.
  • Whole life insurance provides for a level premium and a guaranteed cash value. Cash values can be accessed through policy loans which decrease the death benefit if not paid back. Premiums are typically much higher than term insurance for the same death benefit.
  • Universal life insurance provides permanent insurance coverage with greater flexibility in premium payment and potential for a higher internal rate of return. Universal life includes a cash account. Interest is paid within the policy and mortality charges and administrative charges are charged against the cash account.

Life insurance can help:

  • Replace yor income with non-taxable death benefits
  • Reduce the financial burden on your family of having to continue without you
  • Help pay for your child(ren)’s college tuition
  • Pay the mortgage, car note, and other debts you leave behind
  • Pay your funeral expenses and estate taxes

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