Insurance

Term life insurance is perhaps the simplest form of life insurance. It was developed to provide temporary life insurance protection on a limited budget. Since term insurance can be purchased in large amounts for a relatively small initial premium, it is well suited for short-range goals such as life insurance coverage for paying off a loan, dependent care, or college education for dependents.

Whole Life's primary uses are guaranteed death benefit, guaranteed cash values, fixed annual premiums, access to cash values, and the fact that mortality and expense charges will not reduce the cash value shown in the policy.

Universal Life is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some changes require underwriting approval. As with all life insurance, the main purpose for buying a Universal Life insurance policy is the death protection provided to your loved ones at your death, tax-free.

Survivorship or second to die is very similar to Universal Life except that it insures two people. The primary feature is that no death benefit is paid until both persons insured under the policy have died. This policy is specifically designed to provide funds at the death of the second spouse to cover estate tax liability. This policy can provide needed funds so that the family's estate is preserved for the heirs.

Immediate Annuity is an insurance policy which in exchange for a sum of money makes a series of payments. These payments may be either level or increasing periodic payments for a fixed term of years or until the ending of a life or two lives, or even whichever is longer.

With a Fixed Annuity, earnings accumulate at a rate of interest guaranteed for a specific period of time, depending on the contract's terms. When that period ends, a new rate may take effect, or the old rate may be offered again. The new interest rate never will be less than the guaranteed minimum rate defined in the contract.