Whole Life
These policies are designed for individuals who want guarantees and who are focused on providing death benefit protection over cash value accumulation.
OFFERS
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Guaranteed death benefit
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Guaranteed cash value
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Potential additional cash value by the receipt of any dividends declared by the company. Although not guaranteed, dividend payments are generally declared annually by the company.
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Level premiums that are guaranteed to never change
Universal Life
May be ideal for the consumer who has a need for life insurance, is somewhat conservative, and wants the guarantees of a fixed, minimum interest rate with the potential for additional interest credits.
Increasing the death benefit may be subject to additional underwriting approval.
OFFERS
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Flexible death benefit
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Flexible premium
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Policy cash values are credited a current interest rate that is set by the insurance company, which is subject to change, but will never be lower than a guaranteed minimum interest rate.
Indexed Universal
May be ideal for those who need death benefit protection but are focused on cash value accumulation for lifetime needs such as supplementing retirement income.
Increasing the death benefit may be subject to additional underwriting approval.
OFFERS
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Flexible death benefit
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Flexible premium
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Cash value grows based on an interest crediting strategy that is tied to changes in a market index such as the S&P 500
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Downside protection through minimum guarantees to ensure that your cash value will not decline due to decreases in the Index.
Term Life
May make sense for those who have budget limitations, large protection needs or temporary need.
OFFERS
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Guaranteed death benefit for a fixed period
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Fixed premium.
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No cash value.
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Coverage is for a certain period of time (term), usually for a specified number of years or to a specific age of the insured.
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Initial premiums tend to be lower but will eventually increase.
Life Insurance
In its simplest form, life insurance is a promise between an insurance company and you, the policy owner. If you pay a certain amount of money (premium) to the insurance company, the insurance company will pay a certain amount of money (death benefit) to the person (beneficiary) you tell us to when the person whose life is being insured dies.
There are many types of life insurance. Term insurance only provides a death benefit for a limited period of time.
By contrast permanent insurance can provide a death benefit and the potential to build policy cash value that you can access during your lifetime using policy loans and withdrawals. Permanent insurance can also offer the flexibility to increase or decrease your death benefit as your needs change, as well as the potential to reduce or skip premium payments.