Life Insurance Policies

Term Life Insurance

temporary protection because it only provides coverage for the number of years specified in the contract

Level Term Insurance

death benefit does not change throughout the life of the policy

Annually Renewable Term

as with all level term policies, this provides a level death benefit for a term of one year, upon renewal the premium increases each year with age

Annually Renewable Term

death benefit remains level, but the premium increases annually according to the attained age

Level Premium Term

provides a level death benefit and a level premium during the policy term

Decreasing Term

a level premium and a death benefit that decreases each year over the duration of the policy term

Whole Life Insurance

permanent protection, as long as the premium is paid, coverage will continue for the life of the insured

Cash Value

living benefits which the policyowner can borrow against

Continuous Life (Straight Premium)

charges a level annual premium for the lifetime of the insured and provides a level, guaranteed benefit

Limited-Pay Whole Life

level annual premium, level guaranteed death benefit, endows for the face amount if the insured lives to 100

Single Premium

designed to provide a level death benefit to the insured's age 100 for a one-time, lump-sum payment

Indeterminate Premium

provides a current premium scale and a maximum premium scale, beyond which premiums cannot be raised

Graded Premium

premiums start out relatively low and then level off at a point in the future

Current Assumption

indeterminate premium life policy with cash values being credited at current interest rates. guaranteed minimum interest rate along with current and maximum guaranteed mortality charges

Adjustable Life

can assume the form of either term insurance or permanent insurance

Universal Life Insurance

death benefit can be increased or decreased depending on the insurance needs of the policyowner. Policyowner has has the flexibility to increase or decrease the amount of premium going into the policy

Equity Indexed Universal Life

policy with an equity index as its investment feature. cash value is dependent upon the performance of the equity index. cash values and death benefit are not guaranteed

Joint-Life

single policy that is deigned to insure two or more lives. death benefit is paid upon the first death only

Grace Period

period of time after the premium due date during which the policyowner must pay the premium before the policy lapses (31 days)

Incontestability

prevents and insurer from denying a claim due to statements in an application after the policy has been in force for 2 years, even on the basis of material misstatement of facts