Whole Life
A whole life insurance policy is a type of permanent life insurance that provides coverage for the
entire lifetime of the insured individual. Unlike term life insurance, which only offers coverage for
a specific period, whole life insurance builds cash value over time. Premiums for whole life
insurance are typically higher, but they remain fixed throughout the life of the policy. The
policyholder can use the accumulated cash value to borrow against, withdraw funds, or even
surrender the policy for its cash value. Whole life insurance offers the benefit of lifelong
coverage and the potential for a tax-deferred investment component, making it a popular choice
for individuals looking to protect their loved ones and accumulate savings over time.
Term
A term life insurance policy is a type of life insurance that provides coverage for a specified
period, typically anywhere from 5 to 30 years. If the policyholder passes away during the
coverage period, their dependents receive a death benefit payout. However, if the policyholder
outlives the term, the policy expires with no cash value or payout provided. Term life insurance
policies are generally less expensive than whole life insurance, making them an attractive option
for individuals who want to ensure the financial stability of their loved ones in the event of their
death without having to pay higher premiums for lifelong coverage or investment features.
Cash Back Term
A cash back term life insurance policy, also known as a return of premium (ROP) policy, is a
type of term life insurance that offers a refund of the premiums paid if the policyholder outlives
the policy term. This means that if the insured individual survives the entire coverage period,
they will receive a lump-sum payment equal to the total amount of premiums they paid
throughout the policy term. Cash back term life insurance policies provide the security of life
insurance coverage during the specified term while also offering the potential for a refund,
making it an appealing option for individuals who want both protection and the opportunity to
recoup their premiums if they don’t end up filing a claim.
Jevon Brown-Simpson 