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