What is life insurance?
Life insurance offers financial protection for your family and beneficiaries when you die. Some policies also accumulate cash value, offering a living benefit that can be used for supplemental retirement income, funding for a child’s education or cash for emergencies.1
Who needs life insurance?
So much depends on your needs and your income. If you have loved ones who rely on you for their financial well-being, life insurance helps ensure that their financial future isn’t left to chance.
What is covered under a life insurance policy?
There are many types of life insurance policies that offer a variety of features and benefits. The basic principle of a life insurance policy is that it pays your beneficiary a specified amount of money when you die in exchange for regular payment of premiums.
What are the different types of life insurance?
There are two basic types of life insurance: Term Life Insurance and Permanent Life Insurance.
For those looking for the coverage they need at a cost they can afford or have a specific need for a certain period of time, term insurance is often a good option.
PERMANENT LIFE INSURANCE
For others who prefer the added flexibility and security that owning life insurance for their entire lives can offer, permanent life insurance is typically purchased. In many instances, people find that their objectives are best met with a combination of both term and permanent life insurance. What are the different kinds of permanent insurance?
Whole life insurance provides protection for a lifetime as long as the policy is in force. It offers guarantees that you can’t find in other forms of life insurance, including guaranteed premiums that will not increase, a guaranteed death benefit and guaranteed cash value growth.
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 coverage amounts that may be increased or decreased, 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 insurance is a flexible premium, permanent insurance product combining death benefit protection with the ability to allocate net premiums and account values amounts among divisions of the Separate Account and Guaranteed Principal Account.3
Survivorship life insurance covers the lives of two individuals with one policy. It pays a death benefit after both insureds have died. The cost for this policy is usually lower than the cost of two individual policies.
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1 Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (the cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
2 Variable life insurance policies are sold by prospectus. Before purchasing a variable life insurance policy, investors should carefully consider the investment objectives, risks, charges and expenses of the variable life insurance policy and its underlying investment choices. For this and other information, obtain the prospectuses for the variable life insurance policy and its underlying investment choices from your registered representative or click here for our financial documents. Please read the prospectuses carefully before investing or sending money.
3 Guarantees are based on the claims paying ability of the issuing company or companies.