Agency Marketing Services-Types of Insurance Policies

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.

POLICY TYPE CONSIDER THE NEED

DECRESING TERM LEVEL PREMIUM, DECREASING COVERAGE, NO CASH VALUE
suitable for financial obligations which reduce with time: e.g., mortgages or other amortized loans

ANNUAL 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 minors 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, funding retirement needs, etc.

UNIVERSAL LIFE LEVEL OR AJUSTABLE 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, funding retirement needs, etc.

VARIABLE LIFE AND VARIABLE UNIVERSAL LIFE LEVEL/AJUSTABLE 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 PREM. WHOLE LIFE ENTIRE PREMIUM IS PAID AT PURCHASE, CASH VALUES, LEVEL COVERAGE
Provides protection as well as being an outstanding asset accumulation vehicle.

Note: Withdrawals and loans may be available from permanent policies. There are different income tax consequences if they are "modified endowment contracts."

*Can be increased by positive investment performance. Cash values are directed to a choice of investment accounts (bond, stock, money market, etc.) by the policy owner.

POLICY TYPE	CONSIDER THE NEED
DECRESING TERM	LEVEL PREMIUM, DECREASING COVERAGE, NO CASH VALUE suitable for financial obligations which reduce with time: e.g., mortgages or other amortized loans
ANNUAL 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 minors 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, funding retirement needs, etc.
UNIVERSAL LIFE	LEVEL OR AJUSTABLE 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, funding retirement needs, etc.
VARIABLE LIFE AND VARIABLE UNIVERSAL LIFE	LEVEL/AJUSTABLE 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 PREM. WHOLE LIFE	ENTIRE PREMIUM IS PAID AT PURCHASE, CASH VALUES, LEVEL COVERAGE Provides protection as well as being an outstanding asset accumulation vehicle.