Available in periods of 10, 15, 20, and 30 years, Term Life is protection in its purest form. It has a singular purpose - providing financial stability to your beneficiaries in the event of your death during the term preiod selected. And while it doesn’t provide the kind of cash value accumulation benefits of other types of insurance, like Whole Life, it can fill an immediate need for protection, especially if your budget is limited.
Term simply provides a death benefit for a fixed period of time at a guaranteed premium. It can provide a more affordable option if you’re not yet ready to purchase permanent insurance.
When you purchase Term, you’ll know exactly how much death benefit protection your beneficiaries will receive. Neither market fluctuations nor other economic factors will affect the amount of your death benefit.
Term policies offer you the ability to convert your policy into a Whole Life during the conversion period - without having to undergo additional medical exams or testing. This makes Term a great starting point if Whole Life doesn’t yet fit into your financial plan.
Life rarely moves in a straight line. Unexpected events can suddenly take you in a direction you never anticipated. And that’s precisely why Universal and Variable Unversal Life offer the ultimate in flexibility. Wherever life takes you, you’ll always have the freedom to change your policy to meet your needs.
With Universal Life, your overall premium payments are put to two uses. First, part of your overall premium goes toward keeping the death benefit in effect. This is called the Cost of Insurance (COI). Then the amount of your premium in excess of the COI and other policy charges are invested in the company’s general account and are credited with an interest rate that gets applied to the policy’s cash value.
Variable Universal Life works in a similar way. Part of the premium goes toward the COI, and the premium in excess of all policy charges and premium loads is invested amoung several variable investment options and a fixed rate option. These variable investment options selected by the policyholder, each corresponding to an underlying fund with similar investment objectives, have the potential to grow the policy’s cash value.
Universal and Variable Universal Life can offer death benefit protection for your loved ones or business, like Whole Life does along with tax-advantaged cash value accumulation to help you save for the future.
Whole Life protects your family or your business by offering a permanent death benefit that can fulfill a broad range of financial needs.
One of the greatest advantages of Whole Life is its ability to increase in value over time. The cash value of a Vhole Life policy grows thanks to the guaranteed cash value and the potential to accumulate dividends. But unlike other types of investments and savings vehicles, the cash value and dividends of a Whole Life policy generally grow tax-deferred for as long as the funds remain in the policy.
At any time, for any reason, you can access the cash value you’ve accumulated - generally with no penalty or tax liabilities. You can use the cash value in a Whole Life policy to: