Term Insurance
Picture term life insurance as a temporary financial safety net stretched out over a set number of years—typically 10, 20, or 30. During that window, if the unexpected happens to you, your loved ones receive a tax-free payout called the death benefit. It's usually a lump sum that steps in to cover essentials like the mortgage, everyday living expenses, outstanding debts, college costs for the kids, or just helping maintain their lifestyle without sudden financial strain.
Permanent Life Insurance
Think of permanent life insurance as lifelong financial protection that doesn't expire—as long as you keep up with premiums. Unlike term coverage, it lasts your entire life and builds cash value over time, which grows tax-deferred and can be borrowed against or withdrawn for needs like retirement, emergencies, or other goals.
Living Benefits
Many policies also include living benefits (often as accelerated death benefit riders for chronic, critical, terminal illnesses, and sometimes qualifying injuries), allowing you to access a portion of the death benefit early while still alive if you face a serious health event. This provides funds to help cover medical costs, long-term care, lost income, or other expenses during a challenging time.
When the time comes, your beneficiaries receive the remaining tax-free death benefit to help cover final expenses, replace income, pay off debts, or leave a legacy—offering security and flexibility no matter what life brings.
Annuity
Think of an annuity as a retirement income engine built with an insurance company—it's a contract where you pay in a lump sum or series of payments, and in return, you get a steady stream of income that can last for a set period or for the rest of your life (and sometimes your spouse's too). This helps protect against outliving your savings by turning your nest egg into reliable paycheck-like payments to cover essentials like housing, bills, healthcare, or daily living expenses in retirement.
Annuities come in types like fixed (guaranteed interest and payouts), variable (growth tied to investments with more potential upside but market risk), or immediate (payouts start right away) versus deferred (builds value first, then pays later), often with tax-deferred growth to help your money compound over time.