Permanent Life Insurance

Permanent life insurance provides a death benefit for your entire life and gives you the ability to accumulate tax-deferred cash value within the contract for as long as the policy is enforce. Many variations of permanent life insurance are available in today’s market.

Some of the most common are:

Whole Life
Whole life insurance is the original form of permanent life insurance, providing a death benefit for your whole life based on a specified premium obligation. Whole life provides for contract guarantees in premiums, cash value accumulation and death benefit, with little flexibility. Whole life contracts may or may not include dividend payments.

Universal Life
Universal life provides for flexibility within the contract. You have the ability to customize death benefit, length of coverage, premium obligation and cash value accumulation. Many variations of universal life exist in the current market:

• Current Assumption Universal Life: Assumes current interest rates to illustrate cash value accumulation within the contract. The premium and death benefit remain flexible.

• No-lapse Guarantee/Secondary Guarantee: Guarantees the death benefit for your lifetime, or a specified period, as long as the minimum premium is paid.

• Indexed Universal Life: This is similar to current assumption except the cash accumulation within the contract is based upon the performance of a stock index, such as the S&P 500, or multiple indices. Premiums and death benefit remain flexible.

• Variable Universal Life: This is similar to current assumption except the cash value accumulation in the contract is based upon the investment options you choose. The investment prospectus should be consulted for more information on the investment options and risks associated with purchasing this kind of life insurance.