There are four main types of life insurance:
The most commonly know ones are:
The other two are newer but have over time grown very popular. They are:
The following chart summarizes who they are aimed for:
| |
Term |
Whole |
Universal |
Variable Universal |
| Age |
25-55 |
Over 55 |
Over 25 |
25-75 |
| Marital Status |
Married with dependents |
na |
Have children or dependents depending on their income |
na |
| Cash Flow |
Large need, low cash flow |
High & Stable |
High & Stable |
High & Stable |
| Aim |
Need insurance for a limited period of time - usually 10-20 years, and
do not want to accumulate additional cash value |
Long term estate planning needs |
Estate or business planning needs |
Protect Family & Accumulate Assets or estate or business planning
objectives |
| Risk Tolerance |
na |
Very Conservative |
Moderate |
Moderate to High |
| Cash Value |
None |
Yes |
Yes |
Yes |
