Permanent Life Policies Permanent life insurance is an excellent choice if you are looking for level premiums, ongoing coverage without an expiration date and cash value accumulation. Although term insurance is appropriate in some situations, key person plans are often best funded with permanent life insurance products. Term policies offer protection for a limited time period with opportunities to convert to permanent coverage. They usually offer lower initial premiums, but premiums are likely to increase over time. Combination Life Policies Combination policies blend permanent coverage with term coverage, offering a more affordable alternative to permanent policies.
Opportunities exist to convert the term portion of the policy to permanent coverage over time.
Variable Life Policies Variable policies involve an investment component that impacts the ultimate death benefit received. You choose from a variety of investment divisions and direct a portion of your net premium into those divisions. Another way a business can protect itself against the risks associated with the loss of a key employee is through disability insurance. A disability policy typically names the employee as the insured, and the business as the owner, payer and beneficiary. The benefits of the policy will be available when they are needed most, the plan is easy to administer, and is often very economical.