Term life is the simplest and least expensive type of policy. It's pure insurance with no cash value account. A term life policy has only one function: to pay a specific lump sum to whoever you've designated, upon a specific event - - your death. The death benefit and the policy limit are the same - - a $200,000 policy pays a $200,000 death benefit. The policy protects your family by providing money they can invest to replace your salary, as well as to cover final expenses incurred by your death.

Other types of life insurance provide both a death benefit and a cash value account. Their premiums are larger than term life premiums, because they fund the savings account in addition to buying insurance. These policies are often referred to as cash value policies. They include:
 

Whole life insurance provides permanent protection for your dependents while building a cash value account. With this type of insurance, the insurance company manages the policies various accounts.

What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax-deferred cash accumulation.
It provides a fixed premium which can't increase during your lifetime as long as you continue to pay the planned amount.
It allows the insurance company to exclusively manage the cash value account in your policy.
it provides you the option to receive dividends from your policy or apply them to reduce payments.
It offers you the right to withdraw from the policy during your lifetime.

What it doesn't do
It doesn't offer the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.
It doesn't offer premium flexibility.
It doesn't offer face amount flexibility.

What it does
It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax deferred accumulation.
It allows you to earn market rates of interest on your cash value account.
It offers the right to borrow or withdraw from the policy during your lifetime.
It allows you premium flexibility.
It offers face amount flexibility.

What it doesn't do
It doesn't offer you the account flexibility to invest in separate accounts such as money market, stock, and bond funds.
It doesn't allow you the account flexibility to split your money among different accounts or to move your money between accounts.

Contact your PHD Protection Team and see how a properly structured insurance program can work for you and your family!