Maggie: Hey John! How’s it going?

John: Hey Maggie! I’m good, thanks. I’ve been thinking about getting life insurance, but I’m not sure what kind to get. Can you help?

Maggie: Absolutely, John! Life insurance can be a bit confusing, but I can break it down for you. There are a few main types: term life, whole life, universal life, and index universal life.

John: Okay, what’s the difference between them?

Maggie: Great question! Term life insurance is pretty straightforward. It covers you for a specific period, like 10, 20, or 30 years. It’s usually the most affordable option and is great if you want coverage for a set period, like until your mortgage is paid off or your kids are grown.

John: That sounds simple enough. What about whole life?

Maggie: Whole life insurance is a bit different. It provides coverage for your entire life and includes a cash value component that grows over time. It’s more expensive than term life, but it can be a good option if you want lifelong coverage and an investment component.

John: Interesting. And universal life?

Maggie: Universal life insurance is similar to whole life in that it offers lifelong coverage and a cash value component. However, it’s more flexible. You can adjust your premiums and death benefit amounts as your needs change. It’s a good option if you want that flexibility.

John: That’s a lot to think about. What’s an index universal life policy?

Maggie: Index universal life (IUL) insurance is a type of universal life insurance that allows you to earn interest based on the performance of a stock market index, like the S&P 500. It offers the same flexible premiums and death benefit as universal life, but with the potential for higher cash value growth tied to market performance, while also having downside protection against market losses.

John: Wow, that sounds like a great option! What about annuities? I’ve heard of them but don’t really know what they are.

Maggie: Annuities are insurance products that provide a steady income stream, typically for retirement. You pay a lump sum or make payments over time, and in return, the insurance company provides you with regular payments starting at a specified future date. There are different types, like fixed annuities, which provide guaranteed payments, and variable annuities, where payments can vary based on investment performance.

John: That sounds like a good way to ensure income in retirement. How do I decide which options are right for me?

Maggie: It really depends on your personal situation, financial goals, and budget. How about we schedule a call to do a free review of your needs? We can go over everything in detail and find the best option for you.

John: That sounds perfect, Maggie. Let’s set it up!

Maggie: Awesome! I’ll send you a link to book a time that works for you. I’m excited to help you get this sorted out!

John: Thanks, Maggie. You’re a lifesaver!

Maggie: Anytime, John! Talk soon!