Many people don’t realize what an important role life insurance can play in planning for their future.
Whether your goal is family protection, charitable giving, wealth accumulation, retirement planning, or estate planning, life insurance can help. We specialize in developing innovative life insurance strategies to help investors work toward their goals.
Flexible Life Insurance Coverage Options
| TERM LIFE | UNIVERSAL LIFE | VARIABLE UNIVERSAL LIFE1 | WHOLE LIFE |
| Overview | A low-cost life insurance policy that provides coverage for a specified period of time (e.g., 10, 20 or 30 years) and generally pays a benefit only if the insured dies during that term | A permanent life insurance plan where premium payments are flexible and death benefits are adjustable Policy performance based on the company's declared interest rate | A permanent plan combining the standard features of a universal life policy with investment choices for your premium dollars Policy performance based on the contributions and the performance of the investment choices | Provides a guaranteed death benefit and guaranteed tax-deferred build-up of cash value with level policy premiums Policy performance directly related to the performance of the insurance company's dividends |
| Benefits | Highest death benefit at lowest cost No surrender charges Often makes sense when there is a need for coverage that will disappear at a specific point in time, e.g., a mortgage | Low cost Lifetime protection Flexible premiums Death benefit guarantees available Income tax-free death benefit to family Withdrawals or tax-free loans available* | Lifetime protection Flexibility to change premiums Income tax-free death benefit to family Withdrawals or tax-free loans available* Policies typically overfunded to accumulate cash value for later withdrawals | Lifetime protection Withdrawals or tax-free loans available* Income tax-free death benefit to family Death benefit and cash value guarantees available |
| Flexibility | Although not considered a lifetime plan, offers some ability to convert to a permanent policy | Flexibility to maintain your policy while increasing, decreasing or skipping premium payments based on changing needs | Flexibility to vary premium payment and contribute additional premium dollars to the contract to increase the cash value available | Ability to stop paying the premium and use the value to purchase other forms of coverage once the policy becomes self-sustaining (occurs in different years with each carrier) |
| Premiums | Fixed premiums for specified number of years; increased upon renewal Non-renewable after age 75 | Average cost usually lower than whole life at similar coverage amounts Flexible premiums | Premiums on basic policy comparable to universal life Flexible premiums | Level premiums initially higher than with term and universal life policies of similar coverage amounts Premiums not flexible |
Life insurance is unsuitable as a short-term savings vehicle. The primary purpose is to provide protection against economic loss due to the death of the insured person. Loans and withdrawals may cause your policy to lapse. A lapse or surrender of the policy while loans are outstanding may cause the recognition of a taxable event. Interest charges may apply for any loans. Loans and withdrawals from life insurance policies that are classified as modified endowment contracts may be subject to taxes and 10% federal tax penalty if taken prior to age 59 ½.
Investors should consider the investment objectives, risks, charges and expenses of the variable insurance contract and subaccounts carefully before investing. The prospectus contains this and other information about the variable insurance contract and subaccounts. You can obtain contract and underlying subaccount prospectuses from your financial representative. Read the prospectuses carefully before investing.
Variable insurance guarantees are based on claims paying ability of the issuer. Withdrawals made may be subject to fees when distributed, and treated as ordinary income. Outstanding policy loans at death, and withdrawals, will reduce the policy death benefits and cash values. The investment returns and principal value of the available subaccount portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value.