Types of Life Insurance and Annuities

• Term Life Insurance: This is the most basic and straightforward type of life insurance. You purchase coverage for a specific term (e.g., 10, 20, or 30 years). If you die within the term, your beneficiaries receive the death benefit. If you outlive the term, the policy expires and you get no payout.
• Whole Life Insurance: A type of permanent life insurance that provides coverage for your entire lifetime (as long as premiums are paid). Whole life insurance also has a cash value component that grows over time and can be borrowed against or withdrawn.
• Universal Life Insurance: Another form of permanent life insurance, universal life insurance offers more flexibility than whole life. It combines a death benefit with an investment component that can grow based on interest rates.
• Immediate Annuity: You make a lump-sum payment to the insurance company, and income payments begin almost immediately (usually within 30 days to a year).
• Deferred Annuity: A type of annuity contract where you invest money (either as a lump sum or over time), and instead of receiving income immediately, you delay payouts until a future date — usually retirement. During this deferral (accumulation) period, your money grows tax-deferred.