Life insurance options

Universal life insurance is a form of permanent life insurance with flexible premiums, has cash value growth potential and a flexible death benefit. Policy value is credited daily with a fixed rate of interest.

Indexed universal life insurance allows you to allocate a portion of premiums to accounts that credit interest based on the movement of a linked market index or indices. Premiums allocated to indexed accounts are not invested in any stock or equity investment. There is often a maximum “cap” rate of interest that will be credited in exchange for a minimum “floor” interest rate that is guaranteed.

Variable universal life insurance has all of the attributes of universal life insurance, and depending on product VUL, offers an option for potential policy value growth in addition to the fixed-interest account by allocating a portion of your premiums to variable subaccounts that invest in underlying funds.

The portion of the policy value you allocate to the variable subaccounts will fluctuate in value, depending on the investment performance of the underlying funds.

Before purchasing, be sure to read the prospectus (provided by your financial advisor) of the variable insurance product and underlying funds.

Whole life insurance provides a specified death benefit payable to the beneficiary as well as policy value that grows at a guaranteed rate. The premium and death benefit are not adjustable. Whole life insurance policies may be eligible for dividend credits that can be used to purchase additional insurance, offset future premiums or be received in cash.

Term life insurance provides a specified death benefit payable to the beneficiary. Term policies generally offer a guaranteed level premium for a specified period of time (e.g., 10, 15, 20 or 30 years) after which the premium will increase annually. Term policies typically offer a conversion feature which allows the insured to convert the policy into permanent coverage without additional underwriting. Term life policies do not build cash value.

Life insurance policies may provide optional coverage features, called riders, generally available for an additional charge. Rider charges are either included in the policy premium (whole life and term life) or deducted from the policy value (universal life, indexed universal life and variable universal life). Some rider coverage options may include Waiver of Premium or policy costs in the event of a disabling injury or illness, coverage for children or an option to access the policy death benefit if the insured incurs costs related to extended care services at home or in a nursing facility.

A sales charge may be deducted from each premium you pay.

A surrender charge may be deducted from policy values if you surrender the policy or if the policy lapses during a specified period of time (e.g., 10, 15 or 20 years after purchase or increase in the coverage amount).

• Cost of insurance is deducted from the policy value. This cost is generally based on your gender, age, risk classification and the number of years since the policy was issued. These costs are not guaranteed and may change as determined by the insurer, but must be for specific blocks of policies and not individual policies, subject to maximum guaranteed rates stated in the policy.
• Policy fees and administrative charges are deducted from the policy value to cover expenses for underwriting, issuing and maintaining policy records.
• VUL only: Mortality and expense risk fees charged from the policy value are intended to cover the mortality and expense risk that the insurance company assumes.
• Expenses of underlying funds: With a variable life insurance policy, you indirectly pay the fees and expenses charged by the underlying fund when you choose subaccounts that invest in the underlying funds. The types of fees and expenses associated with the underlying funds are similar to those described under “Mutual funds” and are disclosed in the prospectus for each fund. Keep in mind that the underlying funds, similar to those available through a variable life insurance product, are not publicly traded retail mutual funds.
• Some indexed account options associated with indexed universal life policies and variable universal life policies may have an asset-based charge for any cash value held in those accounts within the policy.

• While universal life, indexed universal life and variable universal life policies may provide premium flexibility, policy values must support the deduction of charges, fees and expenses. If policy values do not support these deductions, additional premiums may be required. Certain features may also require that specific premium payment requirements be met.
• If you wish to access your policy's cash value, your options may include a policy loan, a withdrawal (known as a partial surrender) from the policy, or a life settlement. Each of these options will have its own benefits and, potentially, certain disadvantages based on your individual needs and circumstances.
• Surrenders, loans and withdrawals may cause a permanent reduction of policy cash values and death benefits; may negate any guarantee against lapse; and may cause the policy itself to lapse. Surrenders are generally taxable to the extent they exceed the investment in the policy. 
• Variable life insurance is a complex, long-term investment vehicle that is subject to market risk, including the potential loss of principal invested. Before you invest, be sure to ask your financial advisor about the variable universal life policy’s features, benefits, risks and fees, and whether variable universal life is appropriate for you, based on your financial situation, investment time horizon and objectives. Costs and expenses will vary depending on the product purchased.
• Be sure to ask your financial advisor about the life insurance policy’s features, benefits and fees, and whether the life insurance is appropriate for you, based upon your financial situation and objectives.

Long-term care insurance

This type of insurance can help protect your assets from expenses associated with assistance with day-to-day activities, adult day care, home health care or nursing home care due to illness or accident.

Premiums

Your premium covers all costs and expenses associated with a long-term care insurance policy and any riders you may have added.

Other things to consider

• Certain coverage exclusions may apply.
• Premiums on some products are not guaranteed and may increase at a later date.
• Be sure to ask your financial advisor about the long-term care insurance policy’s features, benefits and premiums, and whether the insurance is appropriate for you based on your financial situation and objectives.

Disability income insurance

Disability income insurance generally provides monthly income benefits when you are unable to work due to a disabling injury or illness, as defined in the policy.

Premiums

Your premium covers all costs and expenses associated with a disability income insurance policy and any riders you may have added.

Other things to consider

• Certain coverage exclusions may apply.
• Employer-sponsored coverage can be a start, but may fall short of covering all needs.

Medicare Supplemental and group insurance

These types of insurance may be an important consideration in a financial plan because they can help provide protection from medical costs or provide benefits to business employees.

Premiums

Your premium covers all costs and expenses associated with Medicare Supplemental or group insurance.

Other things to consider

• Certain coverage exclusions may apply.
• Premiums may increase upon renewal.