Now, let’s take a look at the four other types of Permanent Life Insurance:
- Indexed Universal Life Insurance: This type of insurance is a form of Permanent Life Insurance that combines the premium and death benefit flexibility of Universal Life Insurance under which the policy’s cash value’s current crediting rate is based in part on the performance of a “financial index” – a specific kind of financial table that fluctuates up and down over the years. Most Indexed Universal Life Insurance policies, however, offer guarantees that if the index is negative (goes down), the “crediting rate” will NOT go below zero. Again, your insurance professional can fill in the important details for you about this type of insurance.
- Variable Universal Life Insurance: This type of permanent insurance combines the premium and death benefit flexibility of Universal Life Insurance with the “investment flexibility and risk” of Variable Life Insurance and what is called Universal Life.
- Last Survivor Universal Life Insurance: Also known as “survivorship” or “second-to-die” life insurance, this type of permanent life insurance covers two (2) people (e.g., a husband and wife) and provides for the payment of the death benefit proceeds only when both insured’s have died. The primary purpose of this type of insurance is to pay estate taxes.
- Single Premium Life Insurance: With this type of insurance (often abbreviated as SPL), you may purchase Whole Life, Universal Life, or Index Life insurance with a single, lump-sum premium.