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 45-85. 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 is a permanent life insurance solution that provides death benefit protection, cash value accumulation and flexible premiums that are designed according to the clients’ needs and financial goals. Some UL products can be designed with a No Lapse Guarantee protection which provides the policy owner the comfort of a guaranteed death benefit regardless of the performance of the cash value within the contract.

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