Product Type:

Product Type:1. Variable Life Single Life

2. Variable Life Survivership

3. Universal Life Single Life

4. Universal Life Survivership

5. Term6. Whole Life

7. Traditional Life

8. EndowmentsVariable life insurance provides permanent protection to the beneficiary upon the death of the policy holder.This type of insurance is generally the most expensive type of cash-value insurancebecause it allows you to allocate a portion of your premium dollars to a separate account (i.e., portfolios that invest in securities or bonds).Universal Life

Universal life insurance is a combination of whole life insurance and term life insurance. The pricing of the policy is based on annual renewable term life insurance and increases each year. The premiums are flexible and are designed to cover the costs of the insurance with the difference being applied to a cash value that grows at a given interest rate. Universal life polices are more expensive than term and cheaper than whole life. Some universal life policies offer long term guarantees but most do not. If considering universal life, make sure than you buy a policy hat offers long-term guarantees.Along with providing a death benefit, universal life insurance also incorporates a savings vehicle. In short, it is like combining a term life insurance policy with a tax-deferred interest accumulating savings account.

One benefit of purchasing a universal life insurance policy is that besides accumulating a tax-deferred savings, one may not have to pay premiums during the entire policy. If money to pay the death benefit and other related costs accumulates in the tax-deferred savings portion of the policy, then premiums may eventually not be required to keep the policy in force.

So who could benefit from a universal life policy? Since a universal life policy is an investment vehicle along with a life insurance policy, only people who feel they need life insurance into their 70's would benefit from a universal life policy. This would give the savings portion enough time to possibly accumulate into an investment. Most persons will not need life insurance that late in life, and in the case life insurance is not needed that late, it may be more beneficial to purchase a term life insurance policy and plan a proper retirement investment savings account such as a 401K or annuity.

If a universal policy looks right for you there are a few important points to remember. First, make sure you plan to have the policy long term since you will need to have the policy in force at least 15 years to be eligible for any return of the policy. Second, make sure you have a knowledgeable insurance agent to review your other options such as term and whole life insurance.

Whole Life Insurance

Whole life insurance offers fixed premium payments for life and builds guaranteed cash value. Whole life is the most expensive form of life insurance. Purchasers of whole life insurance are self-funding their insurance program and want to own their life insurance.A whole life insurance policy covers you for your entire life, not just for a specific period such as term insurance. Your death benefit and premium in most cases will remain the same. Whole life insurance also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it.

Are there choices within whole life insurance?

Yes, the most common choices include traditional, interest-sensitive, and single-premium whole life insurance policies. A traditional whole life insurance policy gives you a guaranteed minimum rate of return on your cash value portion. An interest-sensitive whole life insurance policy gives a variable rate on your cash value portion, similar to an adjustable rate mortgage. With interest-sensitive whole life insurance you can have more flexibility with your life insurance policy such as increasing your death benefit without raising your premiums depending on the economy and the rate of return on your cash value portion. Single-premium is for someone who has a large sum of money and would like to purchase a policy up front. Like other whole life insurance options, single-premium whole life insurance accrues cash value and has the same tax shelter on returns.

What are the benefits of choosing a whole life insurance policy over other type of life insurance policies?

Unlike term life insurance, a portion of your premium money goes toward your cash value which in turn could pay off your entire policy only after a few years. Also, your premium will remain constant during the time you are covered unless you choose otherwise. And, unless you make a change to your whole life insurance policy, you have lifelong coverage with no future medical exams. Whole life is also a good choice because of the tax savings.Traditional life insurance was one of the first life insurance products on the market. Traditional products consisting Endowment and Whole Life Insurance PoliciesSingle Life: It is a life insurance on a single life. Single Premium Whole life which is a policy that you only pay one premium. Survivorship is a type of permanent life insurance protection in which two lives (usually spouses) are insured under one policy. Under this type of policy, the death benefit is paid out upon the death of the second insured. Survivorship life insurance can take the form of whole life, variable life, or variable universal life policies, and are primarily for estate planning purposes.Term: This provides coverage at a fixed rate of payments for a limited period of time. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.Endowment policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy. It is this feature - the payment of the endowment to the policyholder upon the completion of the policys term - which rightly accounts for the popularity of endowment policies.

Endowments can be cashed in early (or 'surrendered') and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid in to it.Annuity: It is a contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirementAnnuity contract: It is an Agreement that defines the type and terms of an annuity plan. It generally specifies the amount and number of payments, states the payback starting date, and names the annuitant and the beneficiary.Annuitant: A person who is entitled to receive benefits from an annuity.Cash value:

Cash value is the excess accumulation of funds within a whole life or universal life insurance policy. Cash values generally grow tax deferred and can be withdrawn or borrowed if the policy allows. Cash values are not guaranteed. The amount available in cash upon cancellation of an insurance policy, usually a whole life policy, before it becomes payable upon death or maturity, Also called cash surrender value or surrender value.

Cash value life insurance policy:

A life insurance policy which in addition to providing a benefit upon the death of the policy holder, also accumulates cash value over time enabling benefits to be paid out before death.

Guaranteed issue: Provides a graded benefit. That is, the full death benefit amount of the policy will be paid to the beneficiary after a specified period of time from the issue date of the policy. If death occurs prior to the end of that period of time (usually two or three years), the beneficiary receives a return of paid premiums plus interest. Once that period of time has passed, the full death benefit amount is paid to the beneficiary upon the death of the insured.

Distribution: - Handing out assets to beneficiaries of an estate.

Surrender charge: A fee imposed for terminating an annuity contract prior to its maturity.

Fixed premium: Periodic, equal-sized payments made to an insurance company for an insurance policy or annuity.Level premium insurance:

A policy for which the premiums do not change for the entire duration of the policy. The amount of a level premium is higher than needed for the protection given in the early years of the contract but less than needed for protection in the later years.Long-term care:

An insurance policy that provides benefits for the chronically ill or disabled over a long period of time.Lump sum: A single payment for the total amount due, as opposed to a series of periodic payments.Face amount: The amount stated on an insurance policy, to be paid upon death or maturity.1035 exchange: A tax-sheltered exchange of cash value from one life insurance policy to another. This allows an individual to avoid capital gains or losses in the first policy as long as the second policy is of greater or equal cost.