Updated: 06/01/2024

With so many types of life insurance policies to choose from, it can be difficult to understand which policy is best suited for our clients. Furthermore, many clients need help understanding what differentiates one life insurance policy from another. That’s where this guide steps in.

With this summary guide, you’ll be able to quickly navigate the life insurance space and have more intelligent conversations with your clients about whether a particular life insurance policy might fit (or currently fits) their financial situation and preferences. This summary guide covers some key components of life insurance policies, such as:

• The types of life insurance policies that are available and how they’re categorized.
• What specific types of life insurance policies can do, and who they might be most suitable for.
• The differences between types of policies with regard to their death benefit, cash value, and premiums.
• Important factors to consider regarding policy design, and how they affect cash value accumulation.
• The tax treatment of withdrawals and policy loans, and how they affect a policy’s cost basis.