Life insurance can also be incorporated into your retirement strategy. Some contracts provide cash value, allowing you to accumulate assets tax-deferred within your life insurance contract (under current tax law). The cash value may be accessed―often on a tax-free basis―through a contract loan or partial surrender to supplement your retirement income¹.

There are different types of life insurance policies, including:

• Term Life
• Permanent Life (traditional and flexible)
• Survivorship Life

How you’ll benefit

• Term life provides temporary coverage at a reasonable cost during a specified period of time (5, 10, 20 or 30 years) and pays a benefit only if you die during the term. Term insurance is a good choice at a time in your life when the cost of permanent insurance is beyond your reach.

• Permanent life (traditional and flexible) is designed to provide you with long-term coverage, plus the benefit of cash value accumulating on a tax-deferred basis.

  Over time, it may be the least expensive form of life insurance since premiums are fixed and it builds value. Traditional whole life requires a higher payment but provides the most guarantees. Other permanent products provide premium flexibility but contain a degree of uncertainty.

• Survivorship life insures two people under one contract; often more affordable than two separate contracts. The insurance proceeds are paid at the death of the second insured to die. Survivorship life is often used in estate strategies. It is also designed to help meet business continuation, wealth replacement, charitable giving, and dependent care needs—whichever is important to you.

When to consider
Your need for life insurance will change as your lifestyle changes. When you’re younger, you may have less need for life insurance. On the other hand, purchasing a contract when you’re young can be a smart choice because your premiums will be more affordable.

Take the next step
Before you purchase life insurance, there are a few questions you should consider:

• Why do I want life insurance?
• Which type seems right for me?
• How much do I need?
• How do I choose a contract, provider and agent?

¹ DISCLAIMER: Loans and withdrawals will decrease your death benefit and cash value. Surrenders may generate an income tax liability and may be subject to a surrender charge. A significant taxable event can occur if a contract with an outstanding loan lapses or is surrendered. Loaned values may be credited at a lower rate than unloaned values.