LIFE INSURANCE DEFINITIONS

TERM INSURANCE

Term Insurance may be purchased as:

• One, Five, Ten, Fifteen, Twenty, Twenty-Five. or Thirty Year Term.

Term Insurance provides:

• The protection you need today, at a premium you can afford today.
• Temporary, Pure Protection
• Does not build any Cash Values.
• The least expensive way to purchase temporary protection.
• Becomes costly if you keep it too long.
• A guarantee that after the initial term period, the premium will increase, sometimes dramatically.
• A conversion privilege (usually).  Check the details carefully.

Term Insurance does Not provide:

• Permanent protection for a lifetime.
• Cash Values

Warning!       Not all Term rates are fully guaranteed.  Check carefully.

UNIVERSAL LIFE INSURANCE

Universal Life Insurance Provides:

• Costs more than Term Insurance initially, but much less if you plan to keep the policy for a long time.
• Permanent protection for a lifetime.
• Cash Value build-up.
• Usually pays excess interest, not a dividend.
• Newer policies can be purchased with a Lifetime Guarantee that as long as you pay the required premium the policy cannot lapse.

WHOLE LIFE INSURANCE

Whole Life Life Insurance Provides:

• Costs more than Term Insurance initially, but much less if you plan to keep the policy for a long time.
• Permanent protection for a lifetime.
• Cash Value build-up
• Premiums tend to be higher than either Term or Universal Life, however Cash Values can be very high.
• Sometimes pays excess interest and not a Dividend.
• Usually pays a Dividend which can be used to Reduce Premiums, Enhance Cash Accumulation, or pay some or all of your premiums for you in later years.

USES FOR LIFE INSURANCE

A few of the many uses for Life Insurance Include:

• Family Protection.
• Indemnify against loss of future earnings.
• Mortgage protection.
• Guarantee Children's Education.
• Estate and Tax Planning.
• Business Preservation, Continuation, and Succession.
• Key Person Indemnity.
• Wills and Trusts.
• Charitable Bequests.