Types of Life insurance

What are the principal types of life insurance?

There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.

Life insurance products for groups are different from life insurance sold to individuals. The information below focuses on life insurance sold to individuals.


Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.

There are two basic types of term life insurance policies—level term and decreasing term.

  • Level term means that the death benefit stays the same throughout the duration of the policy.
  • Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.

In 2003, virtually all (97 percent) of the term life insurance bought was level term.

Whole Life/Permanent

Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.

In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. So the company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.

By law, when these “overpayments” reach a certain amount, they must be available to the policyholder as a cash value if he or she decides not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy.

In the 1970s and 1980s, life insurance companies introduced two variations on the traditional whole life product—universal life insurance and variable universal life insurance.


Hey Clint, you need a Praise Break!

This morning after taking Brynn to school I came back to my office here at the house to begin working on my agenda for the day. My plans were to spend some time in prayer, but to be honest the way I was feeling it was going to be more of a complaining session to God, and giving God some advice about some areas that He could fix some things that I have been dealing with.

As I walked by my bookshelf, I looked down and a book titled “31 Days of Praise” written by Ruth Myers, looked like it was waving at me or almost screaming at me, “Hey Clint, you need a praise break buddy”. I immediately had this thought in my mind, why don’t you read Day 1 of this book instead of having the “complaining session” or “Trying to tell God how He can fix things” in your life.

So….I picked the book up and opened to Day 1 and thought let’s get this over so that I can tell God some things and get some things “off my chest” (I looked this Idiom up, it means “to tell someone about something that has been worrying you. I sometimes discuss my problems with someone else just to get them off my chest.”). And a “Spiritual session” of getting things off my chest sounded real good.

Well…about 15 minutes later after reading and Praising Day 1 out loud about 3 or 4 times, I no longer needed that complaining session with God. My attitude and spirit toward the day was completely different than it had been 15 minutes earlier. I still have to deal with the stuff that I was wanting to complain, but after the Praise Break, it doesn’t look near as daunting and overwhelming as it did previously.

I thought I would share day 1 here and then recommend that you purchase, 31 Days of Praise by Ruth Myers. Maybe a Praise Break can help you today as it did me!


Day 1 of 31 Days of Praise by Ruth Myers

My heart rejoices in You, Lord, for you are my strong shelter in times of trouble and danger and stress, my hiding place to whom I may continually resort…my Father who lovingly provides for me…my shepherd who guides and protects me…my Champion who upholds my cause as His child and defends my highest interests…my Bridegroom who delights in me…my God who is mighty to save, who rests in His love for me and rejoices over me with singing, with shouts of joy. You are my inheritance, my share in life, the One who satisfies my longing soul and fills my hungry soul with goodness.

I praise You for Your love and Your wisdom. You are too wise to ever make a mistake, too loving to ever do anything unkind. You act on my behalf, accomplishing what concerns me and fulfilling Your purpose for me as I call on You. Thank You that You love me deeply and tenderly. You are compassionate and gracious, full of lovingkindness, ready to forgive, patiently considerate, and generous beyond imagining. You desire my love and rejoice to do good things for me. You delight to give me the desires of my heart as I delight myself in You. How precious is Your love to me, O God! I sing for joy as I take refuge in the shadow of Your wings!

Psalm 91:1-2 1 He who dwells in the secret place of the Most High shall abide under the shadow of the Almighty. 2 I will say of the Lord, “He is my refuge a fortress; My God, in Him I will trust.”

Scripture references by paragraph
Psalm 27:5; 71:3; 91:1-2; Matthew 6:25-26; Psalm 23:1-3; Isaiah 62:5b; Zephaniah 3:17-18; Psalm 16:5-6:107:9
Psalm 57:2; 138:8; 86:5; 103:8; Matthew 22:37; Jeremiah 32:41; Psalm 37:4; 36:7; 63:7

Do you know the biggest lie YOU ever told?

I received the following in an email from John@JohnMichaelmorgan.com today.

There was nothing to add to this.

From John…

“Do you know the biggest lie YOU ever told?

I know the lie I hear most often…”I wish I could do that”.

No, you don’t.

If you wanted to play basketball like a pro, you’d spend every night shooting thousands of shots.

If you wanted to play piano like Billy Joel, you’d take lessons and work on it constantly.

If you wanted the freedom and rewards from owning your own business, you’d work late, work weekends, read thousands of books, and network with everyone.

If you wanted to be thin, you’d stop eating like crap and work out.

If you wanted to live in a mansion, you wouldn’t buy a lottery ticket and hope you win.

If you wanted to be in a great marriage, you’d stop thinking about yourself and start thinking about your spouse.

If you wanted to be an author, you’d stop waiting for a book deal to fall into your lap and start writing.

If you wanted to be a public speaker, you’d work day and night on your message and delivery and then speak to anyone who will listen.

Stop saying you want something that you aren’t working your butt off to achieve.

My friend, everyone wants self-help but few are willing to do self-work.

No one is bringing you success. You must hunt it down.

I’m cheering you on.”

John Michael Morgan
Author & Coach

Better Than Good

This is not original with me. I am not for sure who the author is.

Better Than Good

  1. I am doing better than good because I clearly understand that

failure is an event, not a person; that yesterday ended last night, and

today is my brand new day.

  1. I am doing better than good because I have made friends with my

past, am focused on the present, and optimistic about my future.

  1. I am doing better than good because I know that success (a win)

doesn’t make me, and failure (a loss) doesn’t break me.

  1. I am doing better than good because I am filled with faith, hope

and love; and live without anger, greed, guilt, envy or thoughts of


  1. I am doing better than good because I am mature enough to delay

gratification and shift my focus from my rights to my responsibilities.

  1. I am doing better than good because I know that failure to stand

for what is morally right is the prelude to being the victim of what is

criminally wrong.

  1. I am doing better than good because I am secure in who and

Whose I am, so I am at peace with God and in fellowship with man.

  1. I am doing better than good because I have made friends of my

adversaries, and have gained the love and respect of those who

know me best.

  1. I am doing better than good because I understand that others can

give me pleasure, but genuine happiness comes when I do things for


  1. I am doing better than good because I am pleasant to the grouch,

courteous to the rude, and generous to the needy.

  1. I am doing better than good because I love the unlovable, give

hope to the hopeless, friendship to the friendless, and

encouragement to the discouraged.

  1. I am doing better than good because I can look back in

forgiveness, forward in hope, down in compassion, and up with


  1. I am doing better than good because I know that “he who would

be the greatest among you must become the servant of all.”

  1. I am doing better than good because I recognize, confess,

develop and use my God-given physical, mental and spiritual abilities

to the glory of God and for the benefit of mankind.

  1. I am doing better than good because my faith assures me that

when I stand in front of the Creator of the universe He will say to me,

“Well done, thou good and faithful servant.”

The past 5 years…

12687831_955999864494641_1099719961570012832_nI ramble while thinking and typing………Almost five years ago I left the position of pastor and became an insurance agent with Liberty Mutual Insurance. It has been a big transition for me. Growing up in a pastors home and then filling different roles of ministry for 42 years of my life it became my identity and way of life. Through those years I met many incredible people and made some great friends, many today are still some of my best friends.

There have been many that made assumptions about me and no doubt have discussed my motives for making the “career change” if that is what it would be called, from the ministry roll to that of insurance agent. There have been days that I have questioned my decision and other days that I have been grateful for my decision.

I have learned that life is a life of faith, whether you are a pastor of a church or an insurance agent, so I continue to walk by faith each day that I live. One positive thing is having a great wife, Kim, that supported me while fulfilling ministry positions and then supporting me through the transition to insurance agent.

Would I make the decision over again if I could go back 5 years, there is no way to answer that because life has seasons and you always think different once you come out of a season and then look back at that season from a different perspective and begin looking ahead to the future.

During this 5 years I am thankful for minister friends that have allowed me to speak at their churches and keep my ministry active in that realm. During and after my tumor removal and cancer treatments in 2012, I preached from and through some of the toughest storms of my life. No matter how much faith you have, the human side of you has many questions. But here is the deal, I made it through and my family has made it through these 5 years of transition. Liberty Mutual Insurance has provided a great path for me to take care of my family after resigning the church in Sherman, TX. I have been able to meet and become good friends with other Liberty Mutual employees. I have given my best to my career at Liberty Mutual just as I did as young traveling evangelist, youth pastor in Fort Worth and Daisetta and lead pastor at cities of Hope Arkansas and Sherman Texas.

At this 5 year mark coming up March 28th with Liberty Mutual Insurance, it will be interesting to see where life takes my family and I as I continue to be the best insurance agent that I can be, speak as a guest minister as those opportunities come, do my best to encourage everyone I can along the journey of life and be the best husband and father that I can to Kim, Blair and Brynn.

Life is Good, even though there are tough times and challenges and God is Good, even though I cry out to Him with questions and things that I don’t understand at times. I move forward with great expectations into the path that God has for myself and my family.

I’m a Seven Year Tattooed…

….well not me me but a guy where I ate breakfast this morning was talking about it. He talked about before he got a tattoo, he wanted to make sure he choose one that he knew he was going to like and was great. Then he begin to tell his friend about the process of the tattoo. He said at first it was looking terrible and he begin to ask himself, what have I done. The tattoo artist kept telling him that it was going to look great when it was completed, to just trust him and to trust the process. The tattooed guy who was talking so loud that you could not help to hear him said, six hours later it did rock and I was very happy.

I begin to think…one problem with humanity or at least the humanity that is writing this blogpost, is that we want the end result without the process. Many times when a new process or path starts in our lives and it doesn’t look like what we thought it would, we start questioning ourselves and our decisions. We think…what was I thinking and even try to find others to blame because we really only want credit when decisions turn out good or we look successful in the eyes of others that are watching us.

Many times when you first start something, it isn’t going to look great, but we like the “Seven year tattooed” guy have to trust the process and path that God has for us. And then like the tattooed guy, we can say…6 hours later or 6 weeks later or 6 months later or 6 years later or 60 years later, Yes, my life rocked! Lord, help me to trust your process.