Whole (Permanent) Life

Lifetime Coverage with Guarantees

One of the major appeals of Whole Life Insurance is that it guarantees a minimum death benefit (also known as the face amount), no matter how long you live, as long as premiums are paid.

• You pay a fixed premium guaranteed for the life of the contract.
• Premiums are invested in the insurance company’s general account.
• You are guaranteed to receive the policy’s minimum cash value and a guaranteed minimum death benefit.
• Dividends, which are not guaranteed, can increase your cash value and death benefit above the guaranteed minimums.

Advantages of Whole Life Insurance
• The discipline of fixed premiums eliminates the temptation to skip premium payments, which could result in future funding problems.
• Fixed premiums allow you to plan cash outlays accurately.
• Dividends, which are not guaranteed, can be used to reduce the policy owner’s out-of-pocket costs.

Disadvantages of Whole Life Insurance
• You can’t increase or decrease the face amount of your policy. Additional coverage requires the purchase of another policy, additional costs, and evidence of insurability.
• No investment flexibility.
• Growth potential is limited.

Term Life

Pure Protection for a Limited Time

Term Life is the simplest form of life insurance. Coverage is for a specified period of time (the term) and provides a death benefit only.
• Death benefit is paid if the insured dies during the specified period.
• Policy does not build cash value.
• Premiums generally remain level or increase throughout the specified period.
• Can be less expensive initially than permanent insurance and gives policyholders the alternative of using the savings to invest on their own.

Advantages of Term Life Insurance
• If your insurance need is projected for a certain number of years, for example, until a debt is paid off, or if cost is a prime consideration, Term may be right for you.
• You can choose protection for one to 30 years.
• Term can save you money or allow you to purchase a larger death benefit than would otherwise be manageable. However, the Term premiums may eventually exceed premiums on other forms of insurance.

Disadvantages of Term Life Insurance
• Term Life Insurance doesn't provide a cash value.
• Term Life Insurance doesn't provide permanent life insurance protection and costs can become prohibitively expensive as you get older.

Return of Premium (ROP)Term Life

If You Live… You Receive a Refund of the Eligible Cumulative Premiums You’ve Paid

With Return of Premium Term Life, you’re rewarded for “outliving your policy.” If you live to the end of the level premium period and your policy is still in force, you will receive a refund of 100% of the eligible cumulative premiums you paid. And, the cash you receive is federal income tax free.

At the end of the level premium period, after you receive your refund, you also have the option to continue your policy with annual renewable term (ART) rates. ART renewal rates are guaranteed.

1 The eligible cumulative premiums paid include premiums for the policy that were paid prior to the benefit’s expiry date and do not include premiums for any riders and additional risks. It is also reduced by any outstanding policy loans and accrued loan interest.

Universal Life

Greater Flexibility, Fewer Guarantees

What Is Universal Life Insurance?
Universal life insurance is permanent insurance that provides protection in case of death, as well as a savings or cash value component. The cash value of a universal life policy is based on the amount of premiums you pay, the declared interest crediting rate and the policy charges of the insurance company. Unlike term life insurance or whole life insurance, flexible premium universal life policies permit flexibility in the amount and timing of premium payments (within limits), and they generally offer you the ability to vary the death benefit amount based on your circumstances.

Universal Life Insurance costs less initially, and offers flexibility in the timing and amount of premium payments, but does not guarantee cash value or death benefit.
• Premium payments are flexible. After initial payment, you make additional premium payments at virtually any time and in any amount (subject to certain minimums and maximums).

• Your policy continues as long as there is enough cash value to cover monthly insurance charges.
• Cash value earns interest at a rate set periodically by the insurance company and generally guaranteed not to drop below a certain level.
• You can choose one of two death benefit options:
• Level benefit equal to the policy’s original face amount,
• Variable benefit equal to the original face amount plus any existing policy account value.

Advantages of Universal Life Insurance
• You can determine the amount and timing of premium payments, within certain limits.
• You can increase or decrease the face amount.

Disadvantages of Universal Life Insurance
• Fewer guarantees than Whole Life Insurance.
• Skipping payments can lead to policy funding problems.
• Adding guaranteed features, like a No Lapse Guarantee or Lapse Protection Rider, can increase the cost of Universal Life.
• Growth in cash value in the policy is limited.
• No investment flexibility.
• A decrease in the death benefit may result in the imposition of surrender charges.

Survivorship Life

Survivorship life insurance ("second-to-die") provides one policy that insures the lives of two people, usually spouses. No proceeds are paid when the first spouse dies. The policy remains in effect and premiums may need to be paid. The death benefit is not paid to the beneficiary until the death of the second insured.

An Estate-Planning Tool
For couples who expect that substantial estate taxes will be assessed on the death of the second spouse, survivorship life insurance is an attractive estate planning vehicle. By providing a death benefit upon the death of the surviving insured, survivorship policies can be used to pay sizeable estate taxes and other expenses at the death of the second spouse.

Your financial, legal and tax advisors can assist you and help you decide if survivorship insurance is right for your estate planning needs.

Health Considerations

Survivorship insurance may be a good strategy in cases where one member of a couple is in less than good health, making other types of insurance extremely expensive. Since two lives are insured, premiums for survivorship life policies are relatively low compared to individual policies on each spouse’s life. Therefore, if the other spouse is in reasonably good health, the couple can usually obtain survivorship life insurance.