TERM LIFE INSURANCE

While in force, Term Life Insurance provides a death benefit to the beneficiary should the insured die within the time period specified in the policy. Whether your life insurance needs are temporary or long-term, in general, Term Life Insurance is ideal for those whose budgets do not permit the higher premiums of a permanent life insurance plan. However, should your financial situation change, many Term Life Insurance plans can easily be converted into a permanent plan without needing evidence of insurability. The two types of Term Life Insurance are as follows:

Level premium – Level premium term life insurance offers a premium which remains the same over a specified period of time (i.e. 5, 10, 20, 25, and 30 years) after which the premium is subject to an increase.

Yearly renewable – Less popular of the two, yearly renewable term life insurance initially offers a low premium that increases substantially as the insured ages and the policy continues to be renewed. While the premium for a yearly renewable policy may start out lower than that of a level premium policy, eventually, the total cash outlay of a yearly renewable policy will far exceed that of the level premium.
--------------------------------------------------------------------------------------------------------------------------------------  Whole Life Insurance

As long as the level premiums are paid, Whole Life Insurance provides permanent benefits to the beneficiary in the event that the insured dies. Whole Life Insurance policies accumulate a cash value to be used at the discretion of the policyholder on a tax-deferred basis. The cash value of a Whole Life Insurance policy can be affected by the insurance company’s expenses, mortality experience, and investment performance. Here are just a few of the reasons an insured would want to extract the cash value of their policy:

	To supplement retirement income For a cash emergency or purchase To use as collateral for a loan To pay future premiums To modify death benefits

--------------------------------------------------------------------------------------------------------------------------------------  UNIVERSAL LIFE INSURANCE

As long as the premiums are paid, Universal Life Insurance provides permanent benefits to the beneficiary in the event that the insured dies. What makes Universal Life Insurance different from Whole Life Insurance is how the premiums are paid. Premiums for a Universal Life Insurance policy are flexible and can be increased, decreased, or skipped as long as the suggested annual premium payment is met. Typically, this target premium is sufficient in keeping the policy in-force up to age 100. The policyholder may purchase the policy with either a level or increasing death benefit and, subject to insurability, has the option to adjust the death benefit throughout the life of the policy.

Like Whole Life Insurance, Universal Life Insurance policies accumulate a cash value to be used at the discretion of the policyholder on a tax-deferred basis. The cash value of a Universal Life Insurance policy can be affected by the insurance company’s expenses, mortality experience, and investment performance. Here are just a few of the reasons an insured would want to extract the cash value of their policy:

	To supplement retirement income For a cash emergency or purchase To use as collateral for a loan To pay future premiums To modify death benefits

--------------------------------------------------------------------------------------------------------------------------------------  VARIABLE LIFE INSURANCE

As long as the level premiums are paid, Variable Life Insurance provides permanent benefits to the beneficiary in the event that the insured dies. Like Whole Life Insurance, Variable Life Insurance policies accumulate a cash value to be used at the discretion of the policyholder on a tax-deferred basis however, the value potential is greater because the policyholder can decide how to invest the accumulated value of the policy by choosing from a list of stocks, bonds, and money market funds provided by the insurance company. The cash value of a Variable Life Insurance policy is not guaranteed and can be affected by the insurance company’s expenses, mortality experience, and investment performance. Here are just a few of the reasons an insured would want to extract the cash value of their policy:

	To supplement retirement income For a cash emergency or purchase To use as collateral for a loan To pay future premiums

--------------------------------------------------------------------------------------------------------------------------------------  VARIABLE UNIVERSAL LIFE INSURANCE

Like its name suggests, Variable Universal Life Insurance, incorporates qualities from both variable and universal policy types. As long as the premiums are paid, Variable Universal Life Insurance provides permanent benefits to the beneficiary in the event that the insured dies. Premiums for a Variable Universal Life Insurance policy are flexible and can be increased, decreased, or skipped as long as the suggested annual premium payment is met. Typically, this target premium is sufficient in keeping the policy in-force up to age 100. The policyholder may purchase the policy with either a level or increasing death benefit and, subject to insurability, has the option to adjust the death benefit throughout the life of the policy.

Variable Universal Life Insurance policies accumulate a cash value to be used at the discretion of the policyholder on a tax-deferred basis however, the value potential is greater because the policyholder can decide how to invest the accumulated value of the policy by choosing from a list of stocks, bonds, and money market funds provided by the insurance company. The cash value of a Variable Universal Life Insurance policy is not guaranteed and can be affected by the insurance company’s expenses, mortality experience, and investment performance. Here are just a few of the reasons an insured would want to extract the cash value of their policy:

	To supplement retirement income For a cash emergency or purchase To use as collateral for a loan To pay future premiums

--------------------------------------------------------------------------------------------------------------------------------------  SECOND-TO-DIE OR SURVIVORSHIP LIFE INSURANCE

Typically used for estate planning purposes by wealthy individuals, a Second-to-Die Life Insurance policy insures the lives of two people - in most instances a husband and a wife. The death benefit is only paid to the beneficiary once both individuals covered by the insurance policy die. Second-to-Die Life Insurance can be obtained through either a Whole or Universal Life Insurance policy and often offer less expensive premiums than if the insured were to purchase two separate insurance policies. Those who utilize a Second-to-Die Life Insurance policy usually do so to pay for estate taxes and preserve their net worth.