Kinds of Life Insurance

Life Insurance Upstate provides your beneficiaries with a lump sum of money when you die. They can use it to cover final expenses, debts, or everyday living costs.


Some policies also offer a cash value and dividend payments. These are part of the company’s profit and can help increase your coverage.

Term Life Insurance is designed to cover your family with a death benefit for a set amount of time, or “term.” This type of policy provides coverage at a lower cost than permanent life insurance. It offers flexible premium payments, accumulating cash savings in a special account within your policy that earns a money market rate of interest (depending on the type of policy you choose), and reinsurance that gives you the option to change your premium payment providing there is sufficient accumulated savings.

Typically, the death benefit is paid out to your beneficiaries if you die during the term of your policy. This can help your family cover financial responsibilities such as mortgage, debt, and education costs, or to provide income to support them in the event of your untimely passing. This is often a simple, affordable solution that’s ideal for families with children and other dependents.

Level term policies, which offer a level premium and death benefit for the entire term of your contract, are popular because they provide predictability, making budgeting easier. Upon renewal, your premium and coverage amounts will likely be adjusted to reflect your current age and health condition, or other factors.

While many people buy term life insurance to cover specific needs, it’s important to review your options and consider the longevity of your family’s financial security. You may be able to combine a term life policy with other permanent policies to help secure your financial future.

The death of a loved one can be financially devastating to your family. The right life insurance protection can provide peace of mind and confidence that your loved ones will be cared for after your passing. It can also help ease the burden of accumulating funeral expenses and other end-of-life costs. Whether you need short- or long-term coverage, we offer a range of plans that can be tailored to your unique lifestyle and financial needs. We’re proud to have earned the highest rating in 2022 for overall customer satisfaction among term life insurers by Forbes and Statista. All of our life insurance products are backed by the claims-paying ability of our underwriters.

Whole Life Insurance

Whole life insurance is a type of permanent coverage that lasts for your entire lifetime as long as you continue to pay the premium. It provides a death benefit and an investment component, which builds cash value over time with most policies offering a guaranteed rate of return. If you withdraw or borrow against your policy’s cash value, it will reduce the death benefit to your beneficiaries.

In addition to providing peace of mind that your loved ones are financially secure in the event of your death, whole life insurance is an effective tool for estate planning and can help you minimize taxes for your heirs. It can also be used as a funding source to pursue your retirement goals. Often, a whole life insurance policy can be purchased for less than the total value of your assets and real estate, meaning that you will not have to sell any of your other investments in order to fund your retirement.

A key benefit of a whole life insurance policy is that it gives families and businesses the ability to insure one of their most valuable assets – human capital – which can be difficult or impossible to replace. This is especially important for a family that depends on the income of a single individual, or for business owners who want to ensure that their key employees have adequate replacement income.

While whole life insurance typically costs more than term life insurance, it offers many benefits that make it a valuable financial tool for those who need it. In addition to the guarantee of a death benefit, the cash value component of a whole life policy can be used to support other financial goals, such as paying for your children’s college education or financing your retirement.

While whole life insurance is a popular option for those who need it, it’s not always the right fit for everyone. That’s why we recommend that you consult with a financial professional to understand what other types of life insurance may be available for you. After looking at your unique situation and objectives, they can suggest options that are a good fit.

Universal Life Insurance

Designed for people who want both life insurance protection and investment opportunities, universal life policies combine the flexibility of premiums (within certain limits), a cash component that grows on a tax-deferred basis1,3 and an increasing death benefit. Unlike whole life or term life insurance, universal life premiums are typically lower.

When you choose a policy with an indexed universal life option, you can have more input into how your cash value accumulates by investing in an underlying market index like the S&P 500®. In addition, the premiums for a universal life policy with an indexed interest option are often less than those of a traditional whole life insurance policy, making it an attractive alternative.

For those who desire flexible coverage that can adjust as you do, we offer several universal life products with an indexed interest option. Our Clearvantage Indexed Universal Life and TurningPoint FIUL policies are two examples of this type of product.

These products feature a 1% loan interest charge in the first 15 years, but can offer a free partial withdrawal1. Withdrawals and loans will reduce a policy’s account value and death benefits and may have tax implications. Each individual should seek specific advice from their own tax or legal advisors.

In addition to the many financial benefits, a universal life insurance policy can provide additional features including an accidental death benefit that adds a higher death benefit to a policy for those who die as a result of an accident, long-term care coverage that helps pay for the cost of long-term care and chronic illness coverage that may help with expenses associated with some serious illnesses. You may be able to add these options by requesting them from the life insurance company after your policy is in force for a certain period of time.

Because there are many factors that impact the performance of a universal life insurance policy, it is wise to work with your financial professional to better understand this type of coverage and ensure it fits into your overall financial plan. In addition, your agent can review your policy periodically to make sure it remains on track to meet your goals.

Variable Life Insurance

Variable Life Insurance (VUL) offers a combination of death benefit protection with cash accumulation potential. It can help clients develop an individualized strategy to achieve their long-term financial objectives.

In addition to providing protection against an unexpected event, variable life policies can help clients grow their wealth through tax-deferred investment accounts. They can also be used to supplement a retirement plan and provide access to capital through flexible premium payments, withdrawals and loans.

The cash value component of a VUL may be invested in multiple sub-accounts that function like stock and bond mutual funds per the policyholder’s direction. The performance of these separate accounts determines the death benefit. It’s important for clients to understand these investments and the risks involved in a VUL.

VUL policies have higher premiums than other permanent life insurance plans, and there is the possibility that the accumulated cash value will fall below the amount needed to pay fees and charges. If this occurs, the policy may lapse.

To avoid this, clients should keep their premium payments current. They should also be aware that taking policy loans or withdrawing the accumulated cash value can reduce the death benefit, affect the length of the guarantee against lapse and have tax consequences.

Due to these inherent risk, VUL is typically reserved for individuals with significant assets and the ability to absorb market losses in their overall financial picture. As a result, these policies are often subject to more stringent regulatory oversight including requirements that companies clearly explain policy fees and investment risks to individuals.