LIFE INSURANCE

Types of Life Insurance

Term Insurance

Ideal for individuals with budget constraints or those needing temporary, high-coverage protection.

Key Features:

• Guaranteed death benefit for a fixed period (subject to the claims-paying ability of the issuing company).

• Fixed premium payments.

• No cash value accumulation.

• Coverage lasts for a predetermined term (e.g., a set number of years or until a specific age).

• Initial premiums are typically lower but may increase over time.*

Whole Life Insurance

Designed for those seeking lifelong protection and guaranteed benefits for their loved ones.

Key Features:

• Guaranteed death benefit (subject to the claims-paying ability of the issuing company).

• Guaranteed cash value accumulation.

• Potential for additional cash value growth through non-guaranteed dividends, which are typically declared annually.

• Fixed, level premiums that remain unchanged.*

Indexed Universal Life (IUL) Insurance

Best suited for individuals looking to combine death benefit protection with potential cash value accumulation for future financial needs, such as retirement.**

Key Features:

• Flexible death benefit, subject to underwriting approval.

• Adjustable premiums to fit changing financial circumstances.

• Cash value growth is tied to a market index (e.g., S&P 500), but policies do not directly invest in the stock market.

• Downside protection through minimum guarantees, ensuring cash value does not decrease due to market declines (subject to the claims-paying ability of the issuing company).*

• Monthly deductions apply to the accumulated value.

Mortgage Protection

Indexed Universal Life (IUL) insurance plays a crucial role in mortgage protection by providing financial security for homeowners and their families in the event of unexpected death or financial hardship.

Unlike traditional term insurance, which only offers a death benefit for a fixed period, IUL combines flexible coverage with cash value accumulation that grows based on market index performance. This ensures that, even if the insured outlives the policy term, they can access accumulated funds to cover mortgage payments, preventing foreclosure or financial strain.

Additionally, since IUL policies allow for adjustable premiums and death benefits, homeowners can tailor their coverage to match their mortgage balance, ensuring their loved ones are not burdened with debt if the unexpected happens. The built-in downside protection guarantees that the policy retains value even during market downturns, making it a reliable tool for long-term mortgage security.

* Information sourced from National Life Group.
** Cash value accumulation is subject to policy performance, additional premium contributions, and market conditions. Loans and withdrawals may reduce cash value and death benefits and could have tax implications. Early surrender may result in charges.