Life Insurance

TERM
WHOLE LIFE
UNIVERSAL LIFE
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LIFE INSURANCE

There are many types of life insurance to fit individual needs and circumstance. The following are some of the basic types of life insurance available.



TERM

This is the simplest form of insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.



WHOLE

Similar to term, but you purchase the policy to cover your "whole life" not just a set period. Premiums remain level throughout the life of the policy, and the company invests at least a portion of your premiums. Some firms share investment proceeds with policyholders in the form of a dividend. Many companies will offer "a relatively low guaranteed rate of return," but in reality pay at a rate in excess of the guarantee.



UNIVERSAL

You decide how much you want to put in over and above a minimum premium. The company chooses the investment vehicle, which is generally restricted to bonds and mortgages. The investment and the returns go into a cash-value account, which you can use against premiums or allow it to build.