Not all policies are created equally

There are inherent death benefits and tax advantages to all life insurance policies. However, there are important differences for you to be aware of between the two basic types of policies.

• Term insurance generally has lower premiums but does not build up cash values that you can use in the future. It generally provides coverage for a level period–10, 15, 20 or 30 years– and pays a death benefit only if you die during that term. It usually provides the largest insurance protection for your premium dollar.
• Permanent insurance policies charge higher premiums at the beginning than comparable term policies. The part of the premiums not used to cover policy charges and expenses is invested, either by the company or by you, and builds up a “cash value” that may be used in a variety of ways in the future.

Regularly updating your insurance is essential

Depending on how long ago you purchased your current policy, you may no longer have adequate coverage. Changes in your personal or professional status and income level can affect what you’ll ultimately need from your life insurance policy. These life change trigger events include:

• Change in marital status
• Becoming a parent or grandparent
• Change in employment status or benefits
• Change in health or lifestyle
• Change in business ownership
• Change in assets or net worth

If it’s been some time since you reviewed your life insurance policy, or if you’ve experienced personal or financial status changes since your last review, you should sit down with your Financial Advisor soon and talk about the role the right insurance policy can play in your broader wealth management strategy.