Types of Whole Life Insurance
Universal Variable Whole Life
-Hybrid of UL and VWL -Flexible premiums and death benefit with control over investment. -Combines investment features and a flexible premium.
Endowments
-Death Benefit -Cash Value -Higher premiums (than WL) -Quickest or accelerated cash value build up -Pays if insured dies or if he/she survives endowment period
Limited Payment Whole Life
-Death Benefit -TaX Deferred Cash Value -Permanent Insurance -Pre-determined premium for limited payment period
Adjustable Whole Life
-Death Benefit -Tax Deferred Cash Value -Permanent Insurance Where Face Amount and premium may change. -Looks to the future (Prospective) -Flexible / Adjustable death benefit based on changing needs.
Variable Life
-Death Benefit -Tax Deferred cash value deposited in separate account and the invested in securities -Permanent Insurance where owner has control over his investment portion -Fixed Premiums -Death benefit and cash value will vary based on investment performance Guaranteed minimum death benefit
Modified / Graded Premium Whole Life
-Death Benefit -Tax-Deferred Cash Value -Permanent Insurance -Lower Premium than whole life in first 5 years -Higher premium than whole life from year six then fixed.
Whole Life (Straight Life/ Continuous Premium Life)
-Death Benefit -Tax-deferred cash value (equity) -Permanent Insurance -Level, Fixed, or predetermined Premium -All premiums returned is you live to age 100
Universal Life
-Flexible Death Benefit -Tax Deferred cash value (money market rates) has a guarantee (ie interest rate) -Combines term insurance and cash savings plan -Permanent Insurance -Flexible Premium and Corridor
Term Insurance
-Temporary or limited protection -Lowest initial premium -level or decreasing death benefit -level term is renewable -No Cash value/ no equity
