• Consumers


  • Producers/Agents


  • Companies


Types of Life Insurance


TERM

  • Protection for a specified period of time
  • May be renewable and convertible to whole life insurance
  • Low initial premium
  • Premium rises with each new term
  • Typically no cash value

WHOLE LIFE

  • Permanent protection
  • Fixed premium
  • Fixed death benefit
  • Fixed cash value
  • Earnings generated by the policy are not taxed while the policy is in force

UNIVERSAL LIFE

  • Permanent protection
  • lexible premium
  • Flexible death benefit
  • Cash value reflects premiums paid and market conditions
  • Earnings generated by the policy are not taxed while the policy is in force

CURRENT ASSUMPTION WHOLE LIFE

  • Permanent protection
  • Fixed premium, but company can adjust premium rates after issue
  • Fixed death benefit
  • Cash value reflects market conditions. Premiums may be reduced to zero -- "vanish" -- for one or more years if investment results are favorable
  • Earnings generated by the policy are not taxed while the policy is in force

VARIABLE LIFE

  • Permanent protection
  • Fixed or flexible premiums
  • Policyholders control the investment of their cash values in separate stock, bond, money market or other accounts
  • Death benefits and cash value vary in relation to the performance of invested funds
  • Earnings generated by the policy are not taxed while the policy is in force

SECOND-TO-DIE LIFE

  • Permanent protection provided through either traditional or interest-sensitive product types
  • Premium flexibility to allow for "vanishing" premium or minimum annual premium; policy may allow for adding or changing insureds
  • Policy insures two lives and pays upon the second death
  • Primarily an estate planning tool to pay estate taxes