Page 17 - NC OE Guide
P. 17
Life Insurance—“Term” vs. “Perm”
Why You Need Both
When it comes to life insurance, you may not know that you need both term life and whole life (sometimes
called “permanent” or “perm”). Term and “perm” work together to provide comprehensive protection through
your lifetime.
Term Life is essential during an employee’s working years. Whole Life provides coverage employees can keep
into retirement—at affordable rates when you buy it early. When you purchase both types of life insurance, you
have valuable inancial protection that can last a lifetime.
Term Life and Permanent Whole Life: together, they can offer a lifetime of protection.
Term Life Permanent Whole Life
What is it?
X Provides protection during your working years X Provides beneits for a lifetime
X Affordable coverage to help survivors weather an X More than just a death beneit—value you can use during
unexpected loss times of need
Why Do You Need It?
Income replacement Final expenses plus cash accumulation
X Kind of like renting a house: employees use the protection Kind of like owning a house: you keep the beneit for a lifetime
for a set period of time X Can help pay inal expenses
X Can help pay the costs families face during the working X Can also be used to pay for the expenses associated with
years if the breadwinner dies prematurely such as terminal illness—including long term care
housing, education, and saving for retirement X Accumulates cash value at a guaranteed interest rate;
X Can be used to pay for the expenses employees can borrow against this value
How Does It Work?
Flexible, normally ends at retirement Guaranteed premium, level beneit—for life
X You may increase coverage as your needs evolve X Your premium is locked-in for the amount of coverage you
X The beneit typically decreases after age 65, and can end desire—the younger you are, the lower the premium.
at retirement, when income replacement may no longer Rates this affordable with guaranteed issue are usually
be necessary only available in the workplace
X Guaranteed issue means you can get coverage with no X The level death beneit does not decrease with age
health questions or exams X The coverage continues for life
X Guaranteed issue—generally available only in the
workplace—means you can get coverage with no health
questions or exams
How Long Do They Work Together?
Protection for now, helpful beneits for later
With valuable protection for your working years and beneits that carry into retirement, Term Life and Permanent Whole Life
provide comprehensive life insurance.
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Why You Need Both
When it comes to life insurance, you may not know that you need both term life and whole life (sometimes
called “permanent” or “perm”). Term and “perm” work together to provide comprehensive protection through
your lifetime.
Term Life is essential during an employee’s working years. Whole Life provides coverage employees can keep
into retirement—at affordable rates when you buy it early. When you purchase both types of life insurance, you
have valuable inancial protection that can last a lifetime.
Term Life and Permanent Whole Life: together, they can offer a lifetime of protection.
Term Life Permanent Whole Life
What is it?
X Provides protection during your working years X Provides beneits for a lifetime
X Affordable coverage to help survivors weather an X More than just a death beneit—value you can use during
unexpected loss times of need
Why Do You Need It?
Income replacement Final expenses plus cash accumulation
X Kind of like renting a house: employees use the protection Kind of like owning a house: you keep the beneit for a lifetime
for a set period of time X Can help pay inal expenses
X Can help pay the costs families face during the working X Can also be used to pay for the expenses associated with
years if the breadwinner dies prematurely such as terminal illness—including long term care
housing, education, and saving for retirement X Accumulates cash value at a guaranteed interest rate;
X Can be used to pay for the expenses employees can borrow against this value
How Does It Work?
Flexible, normally ends at retirement Guaranteed premium, level beneit—for life
X You may increase coverage as your needs evolve X Your premium is locked-in for the amount of coverage you
X The beneit typically decreases after age 65, and can end desire—the younger you are, the lower the premium.
at retirement, when income replacement may no longer Rates this affordable with guaranteed issue are usually
be necessary only available in the workplace
X Guaranteed issue means you can get coverage with no X The level death beneit does not decrease with age
health questions or exams X The coverage continues for life
X Guaranteed issue—generally available only in the
workplace—means you can get coverage with no health
questions or exams
How Long Do They Work Together?
Protection for now, helpful beneits for later
With valuable protection for your working years and beneits that carry into retirement, Term Life and Permanent Whole Life
provide comprehensive life insurance.
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