Whole Life Insurance

Variable Life

A form of permanent life insurance. Where investments are placed in subaccounts. Guaranteed death benefit, however the cash value is not. Outcome of death benefit depends on the sub account investment performance.

Graded Premium WL Insurance

Begins with an even lower premium but the increase range from 10 to 15 years.

Indexed Whole Life

CPI index is tied to the death benefit and premiums.

Limited Payment life

Level premiums. Provides level death benefit protection for the insured's whole life. The time period over the premiums paid are limited, or paid in a shorter span of time. Higher premiums then and with a finite period of time.

whole life product

indexed life

Current Assumption WL (CAWL)

life insurance premium's that are based on the insurer's actual mortality, interest and expense experience. This only guarantees a minimum cash value level. Policy owner has no control over premium changes.

whole life product

limited payment life

Indeterminate Premium WL

lower fixed rate & guaranteed maximum rate. The lower fixed rate is paid for a specified number of years. Premiums are then moved up and down based on investment earnings. If earnings are good, then premium will be lower. Premiums will then be high if the earnings are bad.

Modified Premium WL Insurance

Single increase to premiums, generally every five years. Lower initial premium to begin than regular amount, but then the premiums will increase to a higher level after a designated period of time.

Leveling

ordinary whole life policy owners pay the same premium over the life of the policy.

Single premium life insurance policy

policy paid by one premium payment at one time, when bought. Also known as MEC or Modified Endowment Contract.

Guaranteed Cash Value

Whole life insurance cash value grows at a guaranteed rate. Funded by the policy owner as part of premium payments. WL premiums are generally higher than Term life.

whole life product

graded premium

ordinary (straight) whole life insurance

death benefits and premiums remain level or straight through out the insured's whole life Premiums are paid until insured dies. Premiums never increase despite the insured's likelihood of death.

net amount at risk

difference between cash value and the death benefit. Increase of cash value decrease of death benefit.

whole life insurance

guaranteed cash value that gradually builds inside the policy. The cash value forms part of the death benefit but can still be accessed while the insured is alive.

whole life product

changing premium

whole life product

modified premium

whole life product

ordinary insurance

whole life insurance

provides guarantee death benefit protection for insured's entire life span. No matter when the insured dies, the policy pays the face amount.

aid up

the premiums have been fully paid and the insurance remains in force.

whole life product

variable life