Term Insurance

1. If you have limited financial resources, term insurance may be a cost-effective way to purchase life insurance.
2. You may have a limited need, i.e., provide insurance until your children are grown.
3. You may only need insurance for a specific time period (i.e., 5, 10, 15 or 20 years).
4. Has no cash value.

Permanent Insurance

1. More expensive than term insurance, but protects you for life as long as you pay your premiums when required.
2. Has cash value.
3. Some contracts have investment sub-accounts that offer the potential for significant growth in the contract value over time, but investment risks do exist.

Group Life Insurance

1. Some employers offer a minimum amount of group insurance to employees free of charge.
2. Some employers allow employees to purchase additional group insurance.
3. Some group plans are portable, i.e., you can take the plan if you leave your job.

First- or Second-To-Die Insurance

1. Primarily used for estate planning purposes.
2. Depending on the contract, proceeds are paid upon the first death or the second death.

1. Disability income is tax-free if you pay the premiums.
2. Very important that definition of disability is based on your own occupation, and not on any occupation.
3. Very important to have coverage for as long a period as possible.

1. Disability income is taxable if your employer pays the premiums.
2. May or may not be portable if you leave your job.
3. Coverage may be limited to a specific time period.

1. Premiums may be expensive.
2. May need to increase deductible to lower premiums.
3. Out-of-pocket costs for prescription drugs may be more expensive than on a group plan.

1. Generally more cost-effective than individual insurance.
2. Employees with high-risk medical conditions are covered.
3. COBRA available to departing employees.

1. Generally will have more options than group plan.
2. Receive care at home or in assisted living facility, adult day care, nursing home.
3. Good plans cover dementia and Alzheimer’s disease.

1. Some employers offer group long-term care insurance.
2. Plan may have a limited number of choices.
3. Plan is generally portable.

1. Review with agent to be sure coverage is adequate.
2. Consider increasing deductible to reduce premium.

1. Review with agent to be sure coverage is adequate.
2. Some carriers offer discounts if both house & auto are insured by same company.

1. Homeowners insurance does not cover flood.
2. Consider buying flood insurance, particularly if you have a basement or live in a high water table area.

1. Consider additional coverage over-and-above liability coverage on auto and house.
2. Premiums are generally affordable for the amount of additional coverage.