|
|
| | |
|
Life Insurance Basics
|
|
Note:
Any guarantees associated with payment of death benefits,
income options, or rates of return are subject to the claims-paying ability and financial strength of
the insurer. Policy loans and withdrawals will reduce the policy's cash value
and death benefit and may cause the policy to lapse. Withdrawals may be subject
to surrender charges and income tax, and a 10% penalty may apply to withdrawals
from a modified endowment contract if made under age 59½.
Note:
Variable life and variable universal life insurance policies
are offered by prospectus, which you can obtain from your financial
professional or the insurance company. The prospectus contains detailed
information about investment objectives, risks, charges, and expenses, as well as the underlying investment options. You
should read the prospectus and consider this information carefully before
purchasing a variable life or variable universal life insurance policy.
*Dividends are not guaranteed. | | Comparison of Types of Life Insurance
| Term | Whole
Life | Universal Life | Variable Life | Variable Universal
Life |
---|
Premium | Premiums increase at
each renewal | Level | Flexible | Level | Flexible |
---|
Coverage | Usually renewable
until at least age 70; for some policies, up to age 95 | For
life | For life | For life | For life |
---|
Death benefit | Guaranteed | Guaranteed | May be guaranteed, depending
on policy | Guaranteed | May be guaranteed, depending on
policy |
---|
May increase with
dividends* | Can be increased or decreased | Varies relative to
cash value investment returns | Can be increased or decreased; varies
relative to cash value investment returns | Cash value | None | Guaranteed | Guaranteed minimum interest
rate | Not guaranteed | Not guaranteed |
---|
May increase with
dividends* | Varies based on interest rates | Fluctuates with
subaccount performance | Fluctuates with subaccount performance | Policy loans
allowed? | Not
applicable | Yes | Yes | Yes | Yes |
---|
May be able to borrow up to 100% of
total cash surrender value less annual loan interest rate | Same as whole
life, but usually available at lower net interest rate (i.e., pay the interest
rate and get a credit back to the policy) | Same as whole life, but
usually available at lower net interest rate (i.e., pay the interest rate and
get a credit back to the policy) | Same as whole life, but usually
available at lower net interest rate (i.e., pay the interest rate and get a
credit back to the policy) | Cash withdrawals allowed? | Not
applicable | No | Yes | No | Yes |
---|
Cash value account growth | No
cash value account | Insurer determines guaranteed cash value and
declares dividends based on performance of its general investment
portfolio* | Insurer determines cash value interest crediting rates based
on current interest rate returns to the company | Cash value account
growth depends upon the investment performance of the subaccounts you
choose | Cash value account growth depends upon the investment
performance of the subaccounts you choose |
---|
|
|
|
|
|
IMPORTANT DISCLOSURES
The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This communication is strictly intended for individuals residing in the state(s) of AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, VI, VA, WA, WV, WI and WY. No offers may be made or accepted from any resident outside the specific states referenced. |
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
|