Cash Value life insurance

1." Whole Life Insurance covers you for as long as you live if your premiums are paid. You generally pay the

same amount in premiums for as long as you live. When you first take out the policy, premiums can be several

times higher than you would pay initially for the same amount of term insurance. But they are smaller than the

premiums you would eventually pay if you were to keep renewing a term policy until your later years.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums

for these policies are higher since the premium payments are made during a shorter period."

2. "Universal Life Insurance is a kind of flexible policy that lets you vary your premium payments. You can

also adjust the face amount of your coverage. Increases may require proof that you qualify for the new death

benefit. The premiums you pay (less expense charges) go into a policy account that earns interest. Charges are

deducted from the account. If your yearly premium payment plus the interest your account earns is less than

the charges, your account value will become lower. If it keeps dropping, eventually your coverage will end. To

prevent that, you may need to start making premium payments, or increase your premium payments, or lower

your death benefits. Even if there is enough in your account to pay the premiums, continuing to pay premiums

yourself means that you build up more cash value."

3. "Variable Life Insurance is a kind of cash value life insurance where the death benefits and cash values depend on the

investment performance of one or more separate accounts, which may be invested in mutual funds or other

investments allowed under the policy. Be sure to get the prospectus from the company when buying this kind

of policy and STUDY IT CAREFULLY. You will have higher death benefits and cash value if the underlying

investments do well. Your benefits and cash value will be lower or may disappear if the investments you chose

didn’t do as well as you expected. You may pay an extra premium for a guaranteed death benefit."