Seven Financial Group
Compare Insurance Options
Compare the trade-offs—not invented prices. The right coverage depends on your goals, budget, and the actual policy.
| Compare | Term Life Insurance | Whole Life Insurance | Indexed Universal Life (IUL) |
|---|---|---|---|
| Coverage duration | A defined term; renewal or conversion depends on the policy. | Designed for lifetime coverage when required premiums are paid and policy terms met. | Permanent coverage only while sufficient policy value and required funding keep it in force. |
| Premium structure | Level premiums during a specified period on level-term policies; renewals may cost more. | Typically fixed for the contractual payment period. | Flexible within policy limits; flexibility does not eliminate charges or funding needs. |
| Cash value | Traditional term generally has no cash value. | Guaranteed scheduled cash value where provided by the policy; dividends are not guaranteed. | Index-linked crediting; growth is not guaranteed and charges can reduce value. |
| Riders | Policy-specific; availability and eligibility require confirmation. | Policy-specific; availability and eligibility require confirmation. | Policy-specific; availability and eligibility require confirmation. |
| Underwriting | May involve health questions, records, or an exam; simplified options vary. | Fully underwritten, simplified-issue, or guaranteed-issue options may exist. | Carrier assessment; requirements vary by product and applicant. |
| Major advantages | Often lower initial premiums than permanent coverage for the same benefit. | Lifetime protection and contractual guarantees where applicable. | Potential premium/death-benefit flexibility and index-linked crediting. |
| Major limitations | Coverage ends at expiration unless continued under available policy options. | Typically higher premiums; early surrender, loans, and graded benefits can reduce value. | Fees, non-guaranteed crediting, surrender charges, underfunding, and lapse risk. |
General comparisons are educational, not policy recommendations or quotes. Guarantees are subject to policy terms and insurer claims-paying ability. IUL crediting is not direct market investing; fees and lapse risks apply.
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