Depending on your needs, there are different life insurance options. While some provide coverage for your lifetime, others provide coverage for a specific number of years.
- Term life insurance – Designed to provide protection for larger face amounts. The face amount of the policy and premiums remain level for the guaranteed level premium period chosen by the policy owner of 10, 15, 20 or 30 years. After the level premium period, the premium increases on an annual basis. Provides coverage to age 95. Select rates are available with a paramedical exam.
- Whole life insurance is designed to provide coverage for as long as you live. The annual premium is usually payable for a period of time such as 20 years or to age 100. The premium amount never changes unless there is a change in benefits. The cash value is guaranteed as shown in the policy.
- Universal life insurance is a flexible premium adjustable life insurance product that allows you to select the premium payment within the policy minimum and the IRS maximum. The death benefit can be adjusted higher or lower as defined in the policy without having to buy a new contract. Increases are subject to underwriting approval. The cash value earns interest at a rate determined by the insurer and that rate is subject to fluctuation based on market conditions. Policy may expire if sufficient premiums are not paid. Like whole life, the cash value can be borrowed1. Additionally, the cash value can simply be withdrawn, thereby avoiding interest expense charges, subject to policy limits.
- Variable life insurance can be structured as whole life insurance or as universal life insurance. The distinguishing feature of variable life is that the cash value is dependent on the investment performance of one or more separate accounts. In other words, the policy owner is subject to financial risk and the loss of their cash value. Be sure to read and study the prospectus before buying this type of policy. Erie Family Life does not offer variable life insurance products. For details regarding variable life insurance, consult with a qualified financial professional.