Term Life

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

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

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

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.

Endowment and Annuity

A policy that allows you to accumulate funds that will be payable in a lump sum at a future date. The money accumulates tax-free. If the insured dies before the pay-off date, the full face value of the policy is paid to the beneficiaries.