Whole Life Insurance

Single Premium Whole Life (SPWL)

Designed to provide a level death benefit to the insured's age 100 for a one-time, lump-sum payment. ***The policy is completely paid-up after one premium and generates immediate cash.

cash value is aka as _______________ benefits

living

Interest Sensitive Whole Life aka ____________ ______________

Current Assumption life

The 3 basis forms of Whole Life Insurance are:

Straight whole-life, Limited-Pay whole life and Single Premium Whole Life

Modified Life

a whole life policy in which premiums are lower for the first three to five years and higher thereafter These designed for ppl starting out w/o many financial resources but who expect to have finances grow

definition of cash value

aka living benefits....policyholder can borrow against, or to which he/she is entitled, the event the policy is surrendered. The cash value is called NONFORFEITURE VALUE...doesnt usually accumulate until the THIRD policy year & grows TAX DEFERRED.

Whole life policies also build _________ ____________

cash value (living benefits) which policyholders can borrow against

limited payment whole life policy

designed so that the premiums for coverage will be completely paid-up well before age 100. *****THIS TYPE OF POLICY HAS SHORTER PREMIUM-PAYING PERIOD THAN STRAIGHT LIFE INSURANCE, SO THE ANNUAL PREMIUM WILL BE HIGHER (commonly up to age 65 or term of 20 years for example)

Limited-Pay policies are well suited for those who_________________________________________________________

don't want to be paying premiums beyond a certain point in time. ex) an individual may need some protection after retirement, but doesnt want to be paying premiums at that time.

Permanent life insurance

general term for forms of life insurance policies that build cash value and remain in effect for the entire life of the insured(or until age 100) as long as the premium is paid. ......the most common type of PERMANENT LIFE insurance is WHOLE LIFE

Interest Sensitive Whole Life(Current Assumption) is a

is a fixed premium Whole Life Policy that provides a guaranteed death benefit to age 100 ***This type of policy credits the cash value with the CURRENT (nonguaranteed) interest rate that's usually comparable to money market rates. *The policy also provides a minimum guaranteed rate of interest, which may be tied to bond index rates, Treasury Bill rates or simply declared by the insurer's board of directors. *Although interest sensitive whole life products typically have fixed premiums, most policies will allow the policyowner to "dump" in additional funds in order to shorten the

Graded Premium Whole Life

policy starts w/a premium that is approx. 50% lower than the premium of a straight life policy. The premium then gradually increases each year for a period of 5 or 10yrs and then remains level thereafter

Whole Life Insurance

provides lifetime protection, and includes a savings element (or cash value) . up to age 100.....The policy premium is calculated assuming that the policyowner will be paying the premium until that age. PREMIUMS FOR WHOLE LIFE ARE USUALLY HIGHER THAN FOR TERM INSURANCE

Straight Life(also referred to as continuous premium whole life)is basic _________ life policy

whole The policyowner pays the premium from the time the policy is issued until the insured's death or age 100. of the common whole life policies, STRAIGHT LIFE WILL HAVE THE LOWEST ANNUAL PREMIUMS