Temporary:  10 Year Term; 20 Year Term; & Term to Age 75

Permanent: Term 100; Whole Life; Limit Pay; & U.L. (Universal Life)

An Adjustable plan means that the policy’s premiums can increase based on the Insurance Company’s experiences involving claims, investment results, tax changes and numerous other factors.

Guaranteed plans cannot have their premiums increased no matter what happens regarding the Insurance Company’s experiences. As long the policy owner pays premiums, and doesn’t lapse the policy, the premiums cannot be increased.

A participating policy shares in the Insurance Company’s profits, usually in the form of a “policy dividend”. A “policy dividend” is not a typical dividend.  A policy dividend is a partial refund of over payment a year in arrears at the sole discretion of the Insurance Company.

Non-participating do not share in the Insurance Company’s profits.

All plans whether permanent or temporary, permit the policy owner to automatically renew the policy each year; however, the term “renewable” more appropriately refers to a plan that is initially taken for a specific temporary period of time, such as a 10 Year Term, and then is permitted to renew for another specific period, usually the same as the original one at an increased premium without any medical evidence being required.

Convertibility is a feature that permits a temporary policy to be converted, without medical evidence, to any permanent plan offered or permitted by the Insurance Company.

Life Insurance products are customarily priced to be paid annually in advance. Paying an annual premium is the cheapest method; however, most carriers offer several alternative payment modes with the most popular being Semi-Annual and Monthly Automatic Bank withdrawal. Any payment mode, other than annual, contains a modal loading factor which is A.P. (Annual Premium) x .54 for semi-annual and A.P. x 0.09 for the pre-authorized monthly withdrawal.

Cash Surrender Value which can be used to an “automatic premium loan” in the event premiums aren’t paid within the grace period.  Cash values can also be taken, subject to tax, upon surrender of the policy.

Reduced paid-up values, means that after a certain period of time the policy owner can cease paying premiums in exchange for accepting a fully paid-up policy for a lesser amount than the original policy.