Idaho Life Solutions

(208) 732-2041

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(208) 732-2041

Idaho Life Solutions
  • Home
  • Types of Insurance

Key Distinction

 

Term vs. Permanent: Term is for a set time (temporary), while permanent lasts your whole life and builds cash value. 

 

Term Life Insurance

 

  • What it is: Provides coverage for a specific term (e.g., 10, 20, 30 years) and pays out only if you die during that period.
  • Best for: Covering temporary needs like a mortgage or raising children; generally the most affordable. 

Permanent Life Insurance (Cash Value Policies)

 

  • What it is: Offers lifelong coverage and includes a savings/investment component (cash value) that grows over time.
  • Types:
    • Whole Life Fixed premiums, guaranteed cash value growth, and a guaranteed death benefit.
    • Universal Life (UL): Flexible premiums and death benefits; cash value grows based on interest rates.
    • Indexed Universal Life (IUL): Cash value growth tied to a market index (like the S&P 500) with some protection against losses.
    • Variable Universal Life (VUL): More risk/reward, as cash value is invested in sub-accounts (stocks, bonds) chosen by the policyholder. 

Other Common Types

 

  • Final Expense Insurance: Small, permanent policies (often burial insurance) designed to cover funeral costs and other final expenses, usually requiring no medical exam.
  • Group Life Insurance: Offered through an employer as a benefit, often basic term coverage.
  • Simplified Issue/Guaranteed Issue: Easier-to-qualify (or guaranteed) policies, often for final expenses, with lower coverage amounts. 

Find out more

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