How to select “Type of Insurance”
Term Life Insurance: Pay a monthly premium and your family is protected. Cover short-term needs, provide support during child-raising years, provide security with a mortgage or college education, etc.
ROP Life Insurance: The benefit of “Return of Premium” is in the name: you get the premiums back if you outlive the term. ROP builds cash value which you can borrow against during the term. Extend or convert your coverage – no matter your state of health. And death benefits pass to beneficiaries (mostly) income tax-free, regardless of how large it is.
Lifetime (Whole/Permanent Life Insurance): Often used as an investment vehicle. Policies build cash value that can be accessed during your lifetime, however, this practice is considered a “loan” and interest will reduce the death benefit.
How to select “Health Class”
Preferred Plus: Superior health, normal height/weight profile, no chronic illnesses, no immediate family members died from heart disease or cancer before age 60.
Preferred: Excellent health. Height/weight may be a little over the most preferred range, treatment for high blood pressure or high cholesterol usually acceptable, lab results normal or slightly abnormal.
Regular Plus: Better than average health. Height/weight may be higher than normal
Regular: Average health, normal life expectancy. Height/weight may be on the high side, possible treatment for several minor conditions, one or more parents died from heart disease/cancer before age 60.