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LIFE INSURANCE
POLICIES
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Though it seems there is a bewildering array of policy types and names, they all boil
down to two basic forms of life insurance: permanent and term.
As a rule, permanent needs should be covered with permanent insurance, temporary
needs with term insurance. Often, a combination of policy types does the best job for
you.
So, what is a temporary need? A mortgage; high needs for continuing income when
your children are young; some business obligations; and so on.
Permanent needs? Funeral expenses; supplementing a survivor's income; covering
capital gains taxes at death, especially if family property is to be passed on to the
next generation; and children who remain dependent for their lifetimes, often due to
a disability.
What different policies will do for you
TIP: Before withdrawing any or all of the available cash value, ask if there are any tax
implications. A portion of the cash value may represent earnings that become taxable on
withdrawal.
