A WHOLE LIFE
SBLI sells whole life policies to both children and adults.
With the SBLI whole life insurance policy for children, they can be the beneficiary of the investment account when they reach a certain age. It tends to keep people away from child life insurance policies because they are largely a poor investment.
TERM LIFE
A more economical choice is term life insurance, as policies can range from 10 to 30 years. An SBLI term life insurance policy is a great choice when you’re looking for the lowest interest rate.
The premiums remain the same during that period and the beneficiaries of the insured will receive equal payments.
Whole life insurance is not limited to certain conditions. Rather, each policy lasts as long as the premiums are paid. Since the policy has a cash value, the insured can borrow against it by contributing a portion of each premium payment. This allows the value of the policy to increase each year with minimal taxation. (See our article on term vs. whole life insurance here.)
