Life insurance falls into two broad categories, term and permanent.
Term insurance is simple, affordable coverage you buy for a set period of time. Initial premiums are typically lower than for permanent coverage, but generally increase as time goes on.
TIAA-CREF Life Insurance Company offers two types of term insurance products:
- Level term offers a fixed death benefit and an unchanging premium for a given period of years. Because premiums are fixed, it’s often recommended for young families on a budget or others who want the guarantee of knowing how much their policy will cost.
- Annual renewable term covers you for a year at a time and lets you renew for additional one-year terms. Your initial premiums are typically lower than for level term, but they increase every year, so this type of coverage is best for short-term needs.
Permanent insurance combines insurance with savings and is designed to cover you for life. Premiums are usually higher than for term insurance because your policy builds cash value, which is accessible while you’re alive, should you need it. Choose permanent insurance if the provision of benefits to your survivors is a primary goal.
TIAA-CREF Life Insurance Company offers two types of permanent life insurance products:
- Universal Life is permanent insurance with interest-sensitive cash values. The premium and face amount are adjustable so you can change them as your needs evolve. An increase in face amount may be subject to underwriting. Universal Life is a good choice for those who want the security of a guaranteed interest rate.1
- Variable Universal Life (VUL) is a permanent insurance that provides a choice of investment options and an opportunity for the cash value and death benefit to grow based on the investment results of the investment options. VUL policies provide flexibility of face amount, premium amount and investment choice. However, it is important to keep in mind that changes in premium payments may adversely impact the death benefit and/or cash value potential. If you’re willing to accept a level of investment risk in exchange for the possibility of higher returns, Variable Universal Life may be a good choice.
Due to various charges associated with life insurance contracts, these policies are not suitable as short-term investments.
To take advantage of all the benefits a universal or variable universal life policy has to offer – plus a number of additional features – consider Intelligent Life Universal Life and Variable Universal Life products from TIAA-CREF Life Insurance Company.
Need help choosing?
- To learn more about the different types of life insurance and which would be right for you, call 1 877 276-9429.
- See policies available in your state.
