Types Of Life Insurance Policies

In choosing the type of life insurance policy you purchase, consideration must be given to the need which is being filled; e.g., funding retirement needs, creation of an estate, payment of estate settlement costs (federal and state death taxes, last illness and burial costs, probate fees, etc.), business buy-out, key-man coverage, etc.

Decreasing Term

Level Premium, Decreasing Coverage, No Cash Value: Suitable for financial obligations which reduce with time; e.g., home mortgages or other amortized loans.

Renewable Term

Increasing Premium, Level Coverage, No Cash Value: Suitable for financial obligations which remain constant for a short or intermediate period; e.g., income during a minor's dependency.

Whole Life

Level Premium, Level Coverage, Cash Values: Cash value typically increases based on insurance company's general asset account portfolio performance. Suitable for long-term obligations; e.g., surviving spouse lifetime income needs, estate liquidity, death taxes, and supplemented retirement funding.

Universal Life

Level Or Adjustable Premium And Coverage, Cash Values: Cash values increase based on the performance of certain assets held in the company's general account. Suitable for long-term obligations or sinking-fund needs: estate growth, estate liquidity, death taxes, and retirement funding.

Variable Life

Level/Adjustable Premium, Level Coverage, Cash Value: Suitable for long-term obligations and those who are more active investors and for estate growth and death tax liquidity.

Single Premium Life

Entire Premium Is Paid At Purchase, Cash Values, Level Coverage: Provides protection as well as being an outstanding tax-favored accumulation vehicle.

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