Whole Life Insurance

Graded Premium Whole Life

Coverage has several premium increases that occur annually during each year of the step-rate premium period, which is usually the first five or ten years of the policy. After this period, premiums level off at the higher rate for the remainder of the policy.

whole life insurance

a permanent policy for which you pay a specified premium each year for the rest of your life for a death benefit.

Limited Payment Whole Life

level death benefit protection for the insured's whole life with a level premium. The main difference between ordinary whole life and limited payment whole life is the time over which premiums are paid.

Non-fixed Whole Life Product

life insurers began introducing products based on current, not guaranteed, interest rates. This meant the premiums, and sometimes the death benefit, could change unexpectedly over time to reflect changing interest rates.

Regulation of VLI

(SEC), (FINRA)& state securities agencies

Indexed Whole Life

A whole life insurance policy whose death benefit increases according to the rate of inflation. Such policies are usually tied to the Consumer Price Index (CPI).

Single Premium Whole Life

Paid up for life with one large premium payment

Ordinary (Straight) Whole Life Insurance

With ordinary whole life, benefits and premiums remain level and payable through the insured's entire life. Cash value grows.

Modified Premium Whole Life policy

Same as WL but premium low for 1st 3-5 yrs., THEN has one-time premium increase.

Variable Life Insurance

a fixed-premium policy in which the death benefit and cash values vary according to the investment experience of a separate account maintained by the insurer