Types of Insurance

Indexed Universal Life

Indexed Universal Life is a permanent life insurance solution that provides death benefit protection, strong cash value accumulation potential and flexible premiums. The policy owner can choose to allocate the premiums to one or more Indexed Accounts, Fixed Interest Account or a combination of the two depending on cash flow needs, risk tolerance and financial goals. The product typically has a variety of account options to choose from to diversify it’s growth potential. The indexed accounts offer the ability for strong, market-based growth potential combined with the safety from downside risk with a guaranteed minimum rate floor (often 0% or 1%).

Final Expense

A Final Expense policy is a permanent, low death benefit solution designed to provide beneficiaries with funds that are in line with burial costs and other final expenses. The products can be designed by using either a Universal Life or more commonly, a Whole Life contract. Typical face amounts will range between $5K – $25K and are normally designed for individuals between the ages of 50-80. Depending on the contract, these can be issued either as simplified issue or guaranteed issue.

Reinsurance & Retention

A reinsurance program is essentially designed to support the reinsured(cedant) for that portion of risk that they would ordinarily not be in position to handle. The arrangement is based on the idea that the reinsured(cedant) bears a portion of the risk and the balance is handled by the Reinsurer. The Reinsurer would however like to know how much of the said risk, the reinsured would be in position to pay out of its own account.  This portion of that risk is what is known as the reinsured (cedants) retention.

Universal Life

Universal life insurance is a form of permanent insurance, meaning coverage can last for your lifetime so long as premiums are paid. This is in contrast to term life insurance which only provides coverage for a set period of time, such as 10 or 20 years.  Universal life insurance has a cash value component that is separate from the death benefit. Each time you make a premium payment, a portion is put towards the cost of insurance (such as administrative fees and covering the death benefit) and the rest becomes part of the cash value. The cash value is guaranteed to grow according to a minimum annual interest rate, but may grow faster depending on the insurer’s market performance.

The premium can be flexible; you can choose how much you pay so long as it falls between the minimum and maximum premium amounts.

With Universal Life it is important to pay premiums as illustrated on time.  Paying the premium late or early can have an effect on the coverage duration.

Whole Life

Whole Life is a permanent life insurance option that offers guaranteed death benefit protection, guaranteed cash value accumulation and in some cases, additional growth potential through dividend payments. Whole life can be designed as a life pay or a limited pay solution depending on the clients’ needs.

What is Whole Life – PPT