Life Insurance Services
We offer a wide array of life insurance services ranging from term, whole, universal and variable life policies.
Types of life insurance
- Term life
- Provides coverage for a set period, typically 10, 20 or 30 years
- Most affordable option for pure life insurance protection
- Some policies offer conversion to permanent insurance (i.e. whole life)
- Eligible policies have level premiums that remain constant over the term
- Whole life
- Offers lifetime coverage and typically matures (endows) at age 100
- May pay dividends, which can be used to enhance the policy or reduce premiums
- Builds guaranteed cash value that grows over time
- Access to cash value through withdrawals or policy loans
- Universal life
- Permanent life insurance with lifetime coverage
- Builds cash value like whole life, but with added flexibility
- Allows you to adjust your premium payments and death benefit as your needs change
- Variable life
- Combines lifetime coverage with investment options
- Fixed premium payments, but the death benefit and cash value fluctuate based on investment performance
- Cash value can be invested in various asset classes, such as stocks, bonds, mutual funds, and money market accounts
- Greater growth potential, but also carries market risk
Life insurance questions
How much life insurance do I need?
It depends on who relies on your income, what debts you would leave behind, future costs such as education, and the savings and coverage you already have. Rules of thumb based on a multiple of income can be a rough start, but a needs analysis gives a clearer picture. We review your existing policies first.
What is the difference between term and permanent life insurance?
Term insurance covers you for a set period and generally costs less for the same death benefit. Permanent policies, such as whole and universal life, are designed to last your lifetime and may build cash value, but premiums are usually higher. Variable life policies are sold by prospectus and carry investment risk, including possible loss of principal. The right fit depends on how long you need coverage and the role it plays in your plan.
Can I borrow from a life insurance policy’s cash value?
Many permanent policies allow loans or withdrawals from cash value. Outstanding loans and withdrawals reduce the death benefit and cash value, loans accrue interest, and in some cases they can cause the policy to lapse or create a tax bill. Policy guarantees are subject to the claims-paying ability of the issuing insurance company.
Is my employer’s group life insurance enough?
Group coverage is a useful benefit, but the amount is often modest and it usually ends or changes when you leave the job or retire. For many families it works best as one layer of coverage rather than the whole plan. We can help you see whether there is a gap.
These answers are general education, not individual tax, legal or investment advice. Your situation may differ, so please talk with us or a qualified professional before acting.
Fixed insurance offered through various independent insurance companies. Cambridge does not provide tax or legal advice.
Review what you already have
Life insurance is rarely the whole conversation. It usually sits next to estate planning and your wealth management strategy, and it matters most to the people counting on you. Let us look at what you already have before you buy anything new.