Life Insurance Polices
Indexed Whole Life
(Indexed means to follow, shadow, or mirror) Face amount increases with the Consumer Price Index.
Universal Life
Adjustable death benefit
Variable Life & Variable Universal Life
Cash Value is variable, and there is no guarantee.
Universal Life
Cash value is current, guaranteed minimum
Whole Life
Cash value is fixed and guaranteed
Minimum Deposit Whole Life
Cash values begin immediately and are use to pay future premiums (partially or on full).
Variable Universal Life
Death Benefit is Variable & Adjustable
Whole Life & Variable Life
Does NOT have two death benefit options
Whole Life & Variable Life
Fixed Premiums, Fixed and Guaranteed Mortality rates
Whole Life
Fixed death benefit
Traditional Whole life
Funds invested in general accounts
Universal Life & Variable Universal Life
Has two death benefit options
Modified Whole Life
Level premiums for designated timeframe (typically 5 years); higher premiums thereafter
Limited Pay Whole Life
Level premiums limited to certain time period, less than life.
Indeterminate Premium Whole Life
Lower premium rate initially (2-3 years) and adjusted (up or down) according to the insurers mortality, expense and investment projections.
Graded Premium Whole Life
Lower premiums for designated timeframe (typically 5-10 years); payments rise annually thereafter until leveling off
Enhanced ('Economatic') Whole Life
Mutual insurers issue policy with lower premium and face amount that diminishes after a few years. Dividends are used to purchase paid-up additions
Whole life & Universal Life
No investment options
Whole Life & Variable Life
No partial surrenders
Variable Life & Variable Universal Life
Offers Investment Options
Single Premium Whole Life
Paid up for life with one large premium payment
Straight Whole Life
Permanent level protection; level premiums, until insured's death or age 100.
Variable Life
Variable death benefit
Universal Life & Variable Universal Life
mortality rates are Current, guaranteed maximum. Partial surrenders
