When your family and loved ones are a top priority in your life, protecting them with life insurance can be a wise way to ensure they're taken care of in the future.
Understanding the benefits of life insurance can help you feel more confident in having it as part of your overall financial strategy.
Why life insurance?
Term Life Insurance
If your finances get tight, but your insurance needs are as real as ever, term life insurance may offer a simple solution. It's typically the most affordable way to get coverage for a set period of time. With term, you can lock in rates for 10, 15, 20 or 30 years.
- Lower premium; death benefit only.
- Premiums stay the same for the term you pick.
- Options to convert to permanent insurance.
Permanent Life Insurance
Permanent life insurance consists of insurance and cash value. Potential cash value growth can help cover long-term financial needs while you're still alive. After you die, the death benefit can help care for your loved ones and support causes you care about.
- Source of funds for retirement, education, etc.
- Access to cash valueMore Information.
How to Choose Between Term & Permanent
|What it provides||Protection for a specific amount of time.||Protection for as long as the insured lives.|
|Why buy it||A generally affordable way to get insurance to protect short-term needs, up to 30 years.||Protect long-term financial needs – for the lifetime of the insured. Can help round out overall financial portfolio.|
|Cash value accumulation||No||Yes1|
|Premiums||Premiums are generally affordable, and remain level throughout the term. However they increase at each renewal point (i.e., the end of the term).||Premiums are typically higher than term insurance. Some permanent products have premiums that remain level, while others have flexible premiums.|
|Flexibility||May be able to convert to a permanent contract at the end of the term.||Variations exist to meet your long-term financial needs and budget, including flexibility with premium payment amount and frequency.|
"Once someone is ill, it's too late to get life insurance."*
* The member's experience may not be the same as other members' and does not indicate future performance or success.
This is a solicitation for insurance. A Thrivent Financial representative may contact you.
Guarantees are backed by the financial strength and claims-paying ability of Thrivent Financial.
1 Loans and surrenders will decrease the death proceeds and the value available to pay insurance costs which may cause the contract to terminate without value. Surrenders may generate an income tax liability and charges may apply. A significant taxable event can occur if a contract terminates with outstanding debt. Contact your tax advisor for further details. Loaned values may accumulate at a lower rate than unloaned values.
Cash value is the investment component of permanent life insurance that builds over time, allowing you to borrow against it.