Page 37 - Book12E

• Provides flexibility and the opportunity to build cash value
• Allows policyholder to choose from a variety of underlying portfolios
To quickly summarize, term life insurance helps provide a foundation of financial security upon which to build your financial plan. By con- trast, whole and universal life insurance policies allow you to build cash value to help meet unexpected future financial needs.
Let’s Review
Take a few moments to review the following types of life insurance and match them with the appropriate name.
1. _____ Whole Life Insurance
2. _____ Variable Universal Life Insurance 3. _____ Fixed Universal Life Insurance
4. _____ Term Life Insurance
a. Offers a way to combine life insurance death benefit protection and cash value accumulation with flexible terms under one policy.
b. Considered the simplest and least expensive form of life insurance coverage. Provides death benefit coverage at a guaranteed, consistent premium for a specific period of time.
c. Unlike term life insurance which terminates at the end of the specific period, this type of insurance continues to cover the insured through- out his or her life.
d. Typically provides the flexibility of universal life insurance with the ability to invest in the stock market through associated portfolios.
Life Insurance Advantages and Disadvantages 29
Answers: 1) c. 2) d. 3) a. 4) b.