Schwab offers two types of life insurance, term and permanent, to provide your family with financial resources in the event that you can no longer do so. Schwab's insurance program provides guidance in choosing the right type of insurance coverage and offers price quotes from a choice of providers.
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Compare Term and Permanent Life Insurance
|Term Life||Permanent Life|
|Overview||Provides a specified cash payout in the event of the insured’s death during the predefined time period covered by the policy (i.e., 10, 15, 20, or 30 years).||Provides a death benefit and has a cash value component that you may be able to access or borrow against.1|
|Premiums||Premiums are fixed over the time period you choose and are generally less expensive than permanent life insurance premiums.||Offers lifetime protection with proceeds payable at death.2 Premiums vary depending on the type of permanent life insurance purchased:
|Payout||Guaranteed payout upon death during the term of the policy.||Payout upon death. Access to cash value if needed.1|
|Features||Provides a specified death benefit that remains the same until a claim is submitted. If the policy terminates without a claim, it has no cash value.
Policy can often be converted to permanent life insurance (before the end of the stated term) without repeating the underwriting process.
|The policy has a cash value component that could possibly be withdrawn or borrowed against.1|
|Why Consider It?||Since term life insurance provides protection for a specific number of years, you can plan to cover anticipated expenses, such as a mortgage or education costs.||Provides permanent coverage2 and a death benefit that can help offset the loss of your income for your beneficiaries, while the cash value component may be accessed or borrowed against.1|
Charles Schwab works with Small Business Insurance Agency, Inc. ("SBIA") to make insurance available. Insurance specialists at SBIA can provide you with detailed information about insurance, help determine what’s right for you and, if appropriate, assist you in selecting a policy that fits your needs.
Call 888-539-4888, Monday through Friday, from 8:30 a.m. to 6 p.m. ET, to talk with an insurance specialist.
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How much will it cost?
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1. Withdrawals will permanently reduce the cash value and death benefit. Loans will reduce the cash value and death benefit by the amount of the loan outstanding plus interest.
2. Assuming premiums are paid.
The insurance products available are underwritten and issued by participating insurance companies. Not all policies and product features are available in all states. This is not an offer or solicitation in any jurisdiction where the policies are not approved for sale. Any obligations under the policies are the exclusive obligations of the insurance companies and are subject to the financial conditions of the insurance companies.