Table 4. Life & Annuities Products
Product
|
Description
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Term Life
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Insures a life for a specified period of time. If the insured dies during the term, a benefit is paid. If the policy is not renewed and the insured dies after the term, no benefit is paid.
|
Whole Life
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Often referred to as permanent insurance because it provides a death benefit and a savings feature. The insurance accumulates a cash value, and the policy owner can generally borrow up to 95% of the cash value of the policy.
|
Variable Life
|
A form of whole life insurance in which the face amount and the cash value fluctuate according to the investment performance of a separate account fund. The policy holder can choose how a portion of the premium is invested.
|
Universal Life
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An insurance policy characterized by flexible premiums and cash values. Universal Life policies do not allow the policy holder to choose how premiums are invested.
|
Fixed Annuity
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A form of annuity in which the rate of interest on the annuity account value is guaranteed (fixed) for a specific period.
|
Variable Annuity
|
A form of annuity in which the rate of return on the account value fluctuates according to the investment performance of a separate account fund. The annuity owner can choose how to invest a portion of the premium.
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