Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

"What Types Of Life Insurance Are There?"


There are two main types of life insurance: Term Insurance and Cash-Value insurance.  These two types are similar in some respects, but different in many others. Here are the basics of each:


Term Insurance: A term insurance policy insures your life – Pure and simple…….In fact, it’s often referred to as “pure insurance”. You pay a premium for a designated period of time, generally between one and twenty years, and if you die, your beneficiary receives the insured amount. If you live and want to continue your coverage, the policy must be renewed.


Cash-Value Insurance:This is insurance that remains in effect, not for a specified period of years, but rather until you discontinue it, or until its benefits are paid out. In addition, part of the premium you pay is set aside for you in what amounts to a savings account that earns a dividend.  This money belongs to you whether you keep the policy in force or not.