|
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.
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 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, funding retirement needs,
etc.
Universal Life
Level or Adjustable Premium And Coverage, Cash Values:
Cash values increased 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.
Single Premium Whole Life
Entire Premium Is Paid At Purchase, Cash Values,
Level Coverage: Provides protection as well as being an
outstanding asset accumulation vehicle. |
