Term Life Insurance Products

Term insurance is commonly used to provide coverage when there is a need for short-term protection, or the policy owner has limited funds relative to the amount of life insurance needed. Families often purchase term with plans to convert to permanent insurance in the future.

Term insurance is also useful in situations where the policyholder is responsible for a mortgage or other bank loan and wishes to avoid leaving a financial burden to the survivors in the event of premature death.

Term does not build cash value and is the least expensive type of life insurance. Most term policies have renewable features, allowing you to extend the term of your policy without proof of insurability. In the case of Level Term, the death benefit is paid only if the insured dies during the term.

Benefits of Term Insurance

• Term rates are usually less expensive than other types of policies, allowing the maximum coverage for your dollar.
• Guaranteed renewable clauses allow you to continue your coverage at the end of a term or convert it to permanent insurance without having a medical examination. (Premiums may be higher with the renewed or converted policy.)

Term insurance is appropriate if:

• You need life insurance
• You are on a limited budget
• You wish to purchase the maximum coverage for your premium dollar
• You desire short-term coverage (not for entire lifetime)

Universal Life Products

Universal Life is a flexible life insurance policy that combines insurance coverage with a cash accumulation fund. This type of policy allows the owner to adjust the death benefit and/or premium payments, within limits, to meet the needs of the individual's situation. Net premiums are applied to the cash accumulation fund, which earns a guaranteed minimum interest rate. You have the ability to withdraw from or borrow against your cash accumulation fund. Withdrawals and loans can decrease the amount of the available death benefit. Some policies will allow you to skip premium payments and deduct the administrative fees and death benefit costs from your cash accumulation fund.

Benefits of Universal Life

• Flexibility
• You may have the ability to start and stop making premium payments
• Insurance plus cash accumulation
• Tax Deferral – With any cash value life insurance policy, the growth is income tax-deferred. Policy loans and withdrawals* are generally non-taxable.

Whole Life Policies

Whole life policies invest a portion of the premium in an accumulation fund rather than just going for insurance protection. The benefit is having permanent insurance protection plus cash value. Earnings generated by the policy are not generally taxed while the policy is in force. In addition, to meet financial commitments such as college expenses or purchasing a home, you may be able to borrow money against the policy. Remember, however, life insurance is designed to provide protection. Additional benefits, such as borrowing money from your policy are secondary considerations.