What Kind of Life Insurance Is Right for Me?

Determining what type of life insurance policy is right for you can be a difficult decision. The answer to this question should ultimately be made by the purchaser of the life insurance policy with the assistance of a reputable life insurance advisor.

The first question is whether or not the need for life insurance coverage is short term or long term. If you are utilizing life insurance as a part of an estate plan the answer is typically long term. However, there are some exceptions to this, such as if you are using a long-term grantor retained annuity trust (GRAT) or making a sale to a defective grantor trust. In these cases the need for life insurance coverage may be more short term then long term.

Depending on your goals and objectives life insurance coverage can be broken down into two categories: permanent life insurance and term life insurance. As the names suggest permanent life insurance coverage is meant to stay in-force your entire life (long term), while term life insurance provides coverage for a predetermined period of time (short term).

Once you have determined whether  your need for life insurance coverage is long term or short term it is time to take the next step and determine what type of policy is most appropriate for your particular situation.

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