Term VS Universal vs PAR
| Type of Insurance | Pros | Cons |
|---|---|---|
| Term Life Insurance | Affordable premiums<br>- Simple and straightforward<br>- Flexible terms | Coverage is temporary<br>- No cash value accumulation<br>- Premiums increase upon renewal |
| Universal Life (UL) Insurance | Lifetime coverage<br>- Combines insurance with investment<br>- Flexible premium payments | More complex to manage<br>- Investment performance can vary<br>- Higher premiums compared to term insurance |
| Participating Whole Life (PAR) Insurance | Lifetime coverage<br>- Guaranteed death benefit<br>- Accumulates cash value<br>- Potential for dividends | Higher premiums<br>- Less flexibility in premium payments<br>- Cash value growth may be slower compared to other investments |
Average Monthly Premium Estimates
| Coverage Amount | Term 25 | UL Minimum Premium | PAR |
|---|---|---|---|
| $250,000 | $40 – $60 | $100 – $150 | $160 – $200 |
| $500,000 | $70 – $90 | $180 – $250 | $300 – $350 |
| $1,000,000 | $130 – $160 | $350 – $450 | $600 – $700 |
Please note that these are approximate estimates; actual premiums may vary based on factors such as age, health, smoking status, and specific policy details.
Additional Considerations
- Term Life Insurance: Suitable for individuals seeking affordable coverage for a specific period, such as during mortgage repayment or while raising children.
- Universal Life Insurance: Ideal for those interested in combining life insurance with investment opportunities and who desire flexibility in premium payments.
- Participating Whole Life Insurance: Beneficial for individuals seeking lifelong coverage with a guaranteed death benefit and the potential for dividend earnings.