Life Insurance

When you buy life insurance, you want insurance that fits your needs. First, decide how much you need—and for how long—and what you can afford to pay. Keep in mind the major reason you buy life insurance is to cover the financial effects of unexpected or untimely death.

Life insurance can also be one of many ways you plan for the future. The following definitions will give you more information on the insurance products that best suit your life situation—today and tomorrow.

Invest in Your Life

Whole Life insurance polices are individual policies that offer permanent protection, cash values and death benefits. The premiums are level (never increase) and are payable through age 99 or until the death of the insured.

Life 18 insurance policies offer permanent protection with guaranteed premiums, cash values and death benefits. Premiums are level and payable through age 18.

Education 18 insurance polices offer all of the benefits under Life 18 plus the added value of an annuity rider. This plan is an excellent way to save for college or future goals.

Life 20 insurance policies offer permanent protection with guaranteed premiums, cash values and death benefits. Premiums are level and payable for 20 years.

Life 65 insurance policies offer permanent protection with guaranteed premiums, cash values and death benefits. Policy premiums are level and payable to age 65.

Joint Life insurance policies offer protection on two individuals. Death benefits, cash values and premiums are guaranteed. Premiums are level and payable to age 99. Upon the death of one of the insureds, death benefits are paid to the surviving insured. The surviving insured may then convert his/her coverage to an individual permanent policy without evidence of insurability for an amount equal to the joint life coverage. This is an ideal plan for married couples, business partners or relatives.

Modified Premium Whole Life (MOD 5) insurance policies offer permanent protection with guaranteed premiums, cash values and death benefits. Premiums are level year 1 through 5. They increase beginning year six and remain level to age 99. The death benefit remains constant.

Universal Life Insurance is a kind of flexible policy that lets you vary your premiums payments. You can also adjust the face amount of your coverage. Increases may require proof that you qualify for the new death benefit. The premiums you pay (less expense charges) go into a policy account that earns interest. Charges are deducted from the account.

If your yearly premium payment, plus the interest your account earns is less than the charges, your account value will become lower. If interest rates drop, eventually your coverage will end. To prevent this from happening, you can increase premium payments or lower your death benefits. Even if there is enough in your account to pay the premiums, continuing to pay them yourself means that you build up more cash value. 

Term Life Insurance

Term Life Insurance policies provide low cost coverage for a specified period of time.

10 Year Term policies offer temporary protection for 10 years with guaranteed premiums and death benefits. Premiums are level and payable for the specified term period. Insurance may be renewed without evidence of insurability up to age 60. The premium for the renewal policy is based on the insured's age at the time of renewal. Insurance may also be converted to a permanent plan of insurance.

10 Year Term with Return of Premium Rider policies offer temporary protection for ten years with guaranteed level premiums for both the term policy and rider. Guaranteed return of total premiums paid if the policy and rider are in force at the end of the initial 10 year term period for any of the riders attached. The policy is renewable after the initial 10 years without evidence of insurability.

20 Year Term policies offer temporary protection for 10 years with guaranteed premiums and death benefits. Premiums are level and payable for the specified term period. Insurance may be renewed without evidence of insurability up to age 50. The premium for the renewal policy is based on the insured's age at the time of renewal. Insurance may also be converted to a permanent plan of insurance.

Term 65 policies offer temporary protection to age 65 with guaranteed premiums, cash values and death benefits. Premiums are level and payable to age 65. Insurance may be converted to a permanent plan of insurance.

Individual Decreasing Term policies provide death benefits which decline throughout the specified term of the contract, reaching zero at the end of the term.

Joint Decreasing Term policies provide death benefits on two lives. The death benefit declines throughout the specified term of the contract, reaching zero at the end of the term.

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