Temporary coverage (10, 15, 20 or 30 years)
- Term … level, increasing, decreasing, convertible
- Term … level with Return of Premium
Permanent (Lifetime) coverage
- Universal
- Whole
- Variable
- Variable Universal
- Last Survivor
Morbidity: Probability of becoming disabled
Mortality: Probability of dying
For a 35 year old, the probability of a white-collar employee having a disability lasting more than 90 days before the age of 65 vs. dying, is as follows:
- Male: More than 2x
- Female: More than 3x
Things to consider are the following:
- How many years the people who are dependent on your income would need you to provide for them
- How much you can afford … the longer you keep the insurance the more expensive it is
- To replace lost income
- To pay off mortgage debt
- Funeral expenses
- To provide for a spouse and/or children
- Estate tax reasons
