Term life
Provides death benefits for a term (specific period of time), e.g. 10, 20, or 30 years. Once policy ends no death benefit is paid. Offers lower premiums than permanent life.
Whole life
Form of permanent life insurance, providing fixed coverage for the remainder of the insured's life, with payment of premiums. Premiums remain at a level price. 1. Death benefit: Payment/payments made to beneficiaries upon death. 2. Cash value: Part of premiums paid go to a Cash Value account. Grows at a guaranteed rate. Can be borrowed against; will affect death benefit.
Form of permanent life insurance with flexible coverage and premiums. ***IUL (Index Universal Life): Cash value is linked to a stock market index, e.g. S&P 500. Can lead to higher returns. Generally, have a guaranteed interest rate to add a fixed component.
Universal life
Individual Retirement Account
IRA
Retirement savings account. Promotes retirement saving through tax advantages. Traditional IRA: tax-deductible contributions are made throughout the year that grow tax deferred. Roth IRA: contributions are fully taxed. Investment growth as well as retirement withdrawals are tax-free IF the account has been open for five years and are not withdrawn before age 59 1/2
Annuities
Financial product providing a series of payments in exchange for an initial lump sum or a series of payments. Vary greatly in type. Commonly used as a supplement to retirement income.
MUST HAVE MEDICARE PART A AND B TO QUALIFY. Medicare part c; a combination of part A and B. Can cover services not previously covered such as prescription drugs, vision and dental, and health and wellness programs.