Term insurance Whole life insurance

LIFE
• Period of protection is temporary • Lifetime protection
• Renewable • Generic name for a cash-value policy
• Called ordinary life insurance if premiums are payable
• Convertible throughout the lifetime of the insured and limited
payment life insurance if the premium period is less
than the insured’s lifetime
Yearly ble
renewa ghjhhh Variable Life Insurance
• Issued for a one-year period .
•The policyholder can renew for successive one-year periods and • Similar to a mutual fund ma‫تىىىىىىىىىىنللغعغعل‬intained by the insurer.
convert to a cash-value ‫ تالالتنتنتن‬with no • The death benefit and cash surrender values will increase or decrease
evi‫تىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىىنهغبلغ‬dence of insurability. with the investment experience of the separate account.
5-,10-,15-,20-,25-,or 30-year term
Universal Life Insurance
• The premiums paid during the term period are level, but they increase
when the policy is renewed. • Unbundling of protection and saving component
• Two forms of universal life insurance
Term to age 65 • Considerable flexibility
• Provides protection to age 65, at which time the policyexpires • Cash withdrawals permitted
can converted to a permanent plan of insuranc‫تنتالتااالتاتارتفاارتتالنتالن‬e, but the • Favorable income-tax treatment
decision to convert must be exercised before age 65.
Indexed universal life insurance
Decreasing term • Minimum interest rate guarantee.
• The face amount gradually declines each year. • Additional interest may be credited to the policy and there is a formula
Reentry term for determining it.
• Renewal premiums are based on select (lower) mortality rates if the • Provide more complete disclosure than policies not federally regulated.
insured can periodically demonstrate acceptable evidence of insurability. Current assumption whole
Return of premium term insurance Variable Universal Life Insurance life insurance
• Product that returns the premiums at the end of the term period, • Sold as investments or tax shelters.
Endowment insurance
provided the insurance is still in force.