Life Insurance
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Types of Cash Value Life Insurance
| There are four types of cash value life insurance from which you can select a policy that best satisfies your needs and objectives. The primary differences in the types of cash value life insurance fall into three categories: |
• fixed or flexible premiums; • responsibility for investment decisions; and • benefit guarantees or benefits based on actual investment returns. |
Whole Life Insurance |
The policy owner pays a fixed, level premium and cash
values accumulate at a guaranteed* rate of return. The
insurance company promises to pay a guaranteed* death
benefit. Policy dividends may be payable.
|
Universal Life Insurance |
The policy owner can increase or decrease premium payments and select from a level or increasing death benefit. Cash value accumulations reflect current interest rates or are tied to a stock market index, such as the S&P 500 Index. |
Variable Life Insurance |
The policyowner pays a fixed, level premium and selects from a variety of investment options for cash value accumulations. There is generally a minimum guaranteed* death benefit and the potential for higher death benefits, depending on the performance of the investment options selected. There is no minimum guaranteed cash value. Instead, the cash value available depends on the performance of the investment options selected. |
Variable Universal Life Insurance |
The policy owner can increase or decrease premium payments and select from a variety of investment options for cash value accumulations. If a minimum premium payment schedule is maintained, there may be a minimum guaranteed* death benefit. Cash values are not guaranteed. Instead, the cash value available, as well as the potential for a higher death benefit, depend on the performance of the investment options selected. |
| * Guarantees are subject to the claims-paying ability of the issuing insurance company. |
NOTE: Your licensed financial adviser will discuss with you how specific cash value life insurance products may work for you in your particular situation, including the product's features, benefits, risks, charges and expenses.
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