Glossary

Term Life Insurance – An affordable policy that provides protection for a stated period of time or term. Some of its features include:

• Initial affordability
• Premiums may be adjusted by the insurance provider
• Policy may be renewed after initial term of coverage date
• Policy may be converted to a permanent insurance policy

Permanent Life Insurance – A policy that provides a individual coverage over a long period of time. Some of its features include:

• Level premiums that usually stay the same over time
• Will earn dividends when insurance cost is actually less the premium paid
• Accumulates a cash value over the course of the policy

Universal Life Insurance – A flexible, premium, adjustable policy that accumulates account value. The flexibility of this policy allows the insured person to change the amount of insurance as individual needs change. The main purpose for this insurance is to provide protection for your loved ones in case of your death.

Whole Life Insurance – A policy that provides permanent life insurance coverage for as long as the policy holder is living and maintains premium payments. Some of the features of Whole Life Insurance include:

• Level premiums that usually stay the same over time
• Will earn dividends when insurance cost is actually less the premium paid
• Accumulates a cash value throughout the duration of policy

Second to Die Policy – A life insurance policy that covers two people. Its primary feature is that no death benefit is paid until both insured persons have died. This policy is specifically designed to provide funds to cover estate tax liability.