Whole Life Insurance

Types of Whole Life Insurance

• Joint Whole Life: Provides basic whole life insurance benefits and features, but two lives are insured under the same policy. When one person dies, the benefit is paid to the survivor, who then has an option to purchase an individual whole life policy without having to prove insurability.
  
  
• Last Survivor Whole Life: A type of joint whole life insurance that is designed mainly for married couples. Federal estate taxes are not collected on property left to a spouse. But when the surviving spouse dies, estate taxes are due and can be very high. A last survivor policy pays a benefit only after both spouses have died, providing funds for estate taxes. [more about last survivor insurance]
  
  
• Adjustable: Allows you to vary your coverage as your insurance needs change. You normally choose the face amount you need and the premium you want to pay, and the company calculates a plan that provides coverage for your request. The result could be any plan from a term policy with a short period to a limited-payment whole life policy. You can also choose the type of plan and face value you want, leaving it to the company to calculate the premium rate needed. [more about adjustable policies]
  
  
• Interest Sensitive Whole Life Indeterminate premium life insurance taken a step further ... cash value can increase beyond the stated guarantee if economic conditions warrant. You decide whether you want favorable changes to result in lower premiums or higher cash value. Also called current assumption whole life.
  
  

Ways to Pay Whole Life Insurance Premiums

• Continuous Premiums are payable throughout the life of the person insured.
  
  
• Limited Payment Payments are limited to a specified number of years, or an age after which premiums are no longer due. The annual premium amount is larger for limited payment policies than for continuous premium policies, but these policies build cash value more quickly.
  
  
• Single Premium A type of limited payment policy that requires only one payment and yields instant cash value.
  
  
• Modified For an initial specified period of time premium payments are lower, then increase to a level amount for the rest of the life of the policy. The policy's face amount does not change, so you can buy a larger policy than you might be able to afford otherwise. But the cash value grows more slowly than with traditional whole life policies.
  
  
• Graded A type of modified premium policy that has three or more steps of payment amounts.

Participating Policies