Lasting Financial Security
Life insurance helps provide your loved ones with financial protection after you die in exchange for premiums you pay to your insurer during your lifetime. Some life insurance policies can provide you with financial protection for a specific duration, while others accumulate cash value, offering a living benefit that can be used for any purpose, such as supplementing retirement income, funding a child’s education, or providing cash for emergencies.1
Term life insurance provides coverage for a set period of time, generally at a lower cost than permanent insurance. Many term life insurance products allow you to convert to a permanent policy. The cost of insuring oneself increases over time, so it’s important to understand your short- and long-term financial needs when you select a policy.
Permanent life insurance provides you with financial protection for your entire life, as long as the policy remains in force. Because of the flexibility permanent life insurance offers, there are several types of policies you can purchase.
Whole Life Insurance
The benefits of whole life insurance include fixed premiums with a guaranteed death benefit and cash value growth. A whole life insurance policy has “living benefits,” which may enable you to access the cash value of your policy for any purpose while you’re alive.1 When taking a distribution from a whole life insurance policy, keep in mind that accessing the policy’s cash value will reduce the policy’s cash value and death benefit and increase the chance the policy will lapse.
Universal Life Insurance
Universal life insurance provides lifetime death benefit protection along with flexibility that gives you choices as your needs and finances change. It offers options such as increased or decreased coverage amounts, and premiums that you can vary based on your finances as long as there is enough money in the account to pay for the monthly insurance and administrative charges.
Variable Universal Life
Variable universal life introduces an investment component. You can allocate net premiums and account values among divisions of a separate account and guaranteed principal account.2 You can direct a portion of your net premium payments to any of the investment options available through the separate account depending on the particular variable universal life product.
Each investment option offers a different level of risk and growth potential. Variable universal life insurance offers premium flexibility: you can skip payments as long as your policy has accumulated enough value to meet the monthly deductions. You can also add riders to your policy for an additional premium.
Survivorship life insurance is a form of permanent life insurance that covers two people on one policy and pays a death benefit after both people on the policy have died. The cost of survivorship life insurance is usually lower than the cost of two individual policies.