Broker Check

Life Insurance

The most common forms of Life Insurance are:

  • Term Insurance
  • Whole Life
  • Universal Life
  • Variable Universal Life

Which Life Insurance is Appropriate for You?

Term Insurance

Term life insurance is a form of temporary insurance that provides a lump-sum payout upon death for a stated period of time. Since term insurance can be purchased in large amounts and for a relatively small out-of-pocket expense, it is most suitable for income replacement and short-range goals (i.e., to pay off a mortgage or loan, to fund a child’s education, etc.).

Benefits of Term Insurance:

  • Cover a larger, temporary risk
  • Low-cost, flexible product that may be convertible as needs change
  • Level premium payments

Death Benefit = Fixed
Premium = Choice of level or increasing
Cash Value = No
Goal: Pure Protection

Whole Life
Whole Life is a form of permanent insurance that covers a client for as long as he or she lives and continues to make the required premium payment. Whole Life can be a good fit for pursuing long-range goals, as the premiums remain the same for the life of the policy. In addition, cash values may provide money to help with temporary needs or emergencies that may arise.

Benefits of Whole Life:

  • Guaranteed Cash Values - A portion of the money paid into a whole life policy accumulates as guaranteed cash values. Therefore, if the policy is surrendered, these guaranteed cash values would be available to the insured. Or, as long as the policy is in force, the insured may borrow against them as a policy loan at the current policy loan interest rate.
  • Premiums level and payable for life - Since premiums are level, the younger you are when you purchase the policy, the less expensive the annual premiums will be.
  • Dividends - Whole life insurance policies can earn dividends. Dividends result when the actual life insurance costs turn out to be less than assumed when setting the premiums.

Death Benefit = Fixed or Increasing
Premium = Fixed
Cash Value =Yes
Goal: Protection and Cash Value

Universal Life
Universal Life is a permanent, flexible-premium, adjustable death benefit life insurance policy that builds cash value. The flexibility of this policy allows you to change the amount of insurance, as your needs for it change. Some of these changes may require an additional medical exam. Universal Life makes sense for those individuals who have a long-term need for life insurance and desire premium flexibility.

Types of Universal Life Insurance include:

  • Guaranteed UL (sometimes called Protection UL)
  • Index UL
  • Current Assumption UL (sometimes called Accumulation or Cash Accumulation UL)

Benefits of Universal Life Insurance:

  • Product is flexible, and gives you the opportunity to accumulate cash
  • You can adjust the death benefit and premium payments to fit your needs
  • Tax-Deferred Account Growth - The policy's Account Value earns interest at the company's current interest rate; federal income tax deferred. The current interest rate is typically guaranteed to be at least 3% a year

Death Benefit = Fixed or Flexible
Premium = Flexible
Cash Value =Yes, based on declared interest rate
Goal: Protection and Cash Value

Life Insurance companies we do business with:

  • Allianz
  • American General Life (AIG)
  • AXA
  • ING/Voya
  • John Hancock
  • Lincoln National
  • Midland National
  • Mass Mutual
  • Met Life
  • Mutual of Omaha
  • Nationwide
  • Pacific Life
  • Principal
  • Protective
  • Prudential
  • Transamerica

Allianz, AIG, AXA, ING/Voya, John Hancock, Lincoln National, Midland National, Mass Mutual, Met Life, Mutual of Omaha, Nationawide, Pacific Life, Principal, Protective, Prudential, Transamerica, Liberty Bell Financial Group and Cetera Advisor Networks are separate entities.


Life insurance can play a vital role in your financial security plan. We can help you select coverage from a variety of life insurance options to address the needs identified in your financial plan - contact us today to find out how.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

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