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Life & Annuities



                        
 
Types of Insurance

Whole Life Insurance

  • Insurance which provides coverage for an individual’s whole life, provides a fixed premium for the duration of the policy, provides a minimum guaranteed interest rate and a guaranteed death benefit. Whole life coverage typically does not allow any changes once issued.

Term Life Insurance

  • Insurance which provides coverage for a stated period of time (5 years, 10 years, 20 years, 30 years, etc.). This type of coverage does not provide a cash value.

Universal Life Insurance

  • Allows for changes in the amount and timing of premium payments (within certain limits) and the ability adjust coverage levels as needs change. 
  • Similar to whole life in that it includes a minimum guaranteed interest rate, but no investment flexibility.

Variable Life Insurance

  • Allows the policyholder the ability to allocate their premium to investment account accounts, with different levels of risk and growth potential. 
  • Minimum cash values are not guaranteed because of market fluctuation, and coverage amounts cannot be changed.
  • Exposes the policyholder to greater market risk, but has the potential for greater long term returns compared to whole or universal life insurance policies.

Variable Universal Life Insurance

  • Similar to Variable Life insurance, but allows for changes in coverage levels and amount of premium payments. 
  • Allows the policyholder the ability to allocate their premium to investment account accounts, with different levels of risk and growth potential. 
  • Minimum cash values are not guaranteed because of market fluctuation, and coverage amounts cannot be changed. 
  • Exposes the policyholder to greater market risk, but has the potential for greater long term returns compared to whole or universal life insurance policies. 
There are many variations, benefits, options, etc., to all of these types of contacts. Be sure to ask your producer to explain the policy in detail before you make your purchase



Types of Annuities

Fixed Annuity

  • Contract that is designed to accept premiums in order to provide payments to the contract holder at a later date, typically at retirement. Payments can be for a specific period of time or last for the life of the contract holder. 
  • Can provide a minimum fixed interest rate, or provide an interest rate based on market performance (Equity-Indexed Annuities). 
  • Cash value accumulates in a tax deferred status until withdrawn.

Variable Annuity

  • Contract that is designed to accept premiums in order to provide payments to the contract holder at a later date, typically at retirement. Payments can be for a specific period of time or last for the life of the contract holder. 
  • Allows the contract holder the ability to allocate their premium to investment account accounts, with different levels of risk and growth potential. 
  • Minimum cash values are not guaranteed because of market fluctuations and exposes the contract holder to greater market risk, but has the potential for greater long term returns compared to fixed annuities. 
  • Cash value accumulates in a tax deferred status until withdrawn. 
There are many variations, benefits, options, etc., to all of these types of annuities. Most annuities have a surrender period that charges the contract holder a fee if a withdrawal is taken before a specified period of time. Be sure to ask your producer to explain all of the fees, charges and policy details before you make your purchase.