Features
Return to Basics of Life Insurance
participating and universal life insurance
Term life insurance Participating life insurance Universal life insurance Lifetime coverage? No, coverage for a specified term only. Yes
Yes Can more than one life be covered? Yes, single or joint coverage, with payout on first death only (Joint first-to-die).With some policies, you can insure more than two lives. Yes, single or joint coverage, with payout either on first death (joint first-to-die) or on last death (joint last-to-die). Yes, single or joint coverage, with payout either on first death (joint first-to-die) or on last death (joint last-to-die). With some policies, you can add multiple lives, each with its own separate coverage. Premium guarantees? Yes,the initial premium is generally guaranteed. Guarantees for renewal rates vary by company.
Yes, premiums for the basic insurance coverage are guaranteed for the duration of the premium-paying period. Yes,the cost-of-insurance charges and policy fees for the basic insurance are typically guaranteed for the duration of the coverage. Charges for premium tax are not guaranteed. Premium flexibility? No,premiums are payable for the entire coverage period. Yes, some dividend options let you pay premiums with your dividends. Yes, you can pay either a minimum amount to maintain the basic insurance or a larger amount. You can use your accumulated account values to cover policy charges. You can choose a cost-of-insurance option (annually increasing, level, or limited-pay) to fit your budget. Guaranteed cash value? No, generally not. Yes, gives you a foundation of guaranteed cash value. Available if you choose a limited-pay cost-of insurance option. Usually not available with level or annually increasing cost-of-insurance options. Guaranteed death benefit?
Yes, for the specified term. Yes, the basic death benefit is guaranteed for the insured person’s lifetime. Additional death benefits you purchase with dividends may not be guaranteed. Yes, the initial death benefit is guaranteed. Additional death benefits (for example, increasing death benefit or Coverage Plus death benefit) are not guaranteed. Policyowner dividends? No, generally not. Yes, you benefit from the success of the pool of participating policies, through the receipt of policyowner dividends. You decide what to do with your dividends.
No, policyowner dividends aren’t available. Instead, you select your own investment options. Investment options? No, not available. No, a team of professional managers invests the pooled assets of all the participating policies. Yes, you can choose from a broad spectrum of guaranteed interest options, folio options, index-linked options and fund-linked options. Additional benefits and riders? Yes, you can customize you life insurance policy by selecting from a wide variety of optional benefits and riders. These vary from product to product. Washburn Financial can give you the full details.
