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                          Whole Life Insurance

Whole Life Insurance is a more complex form of life insurance. The premiums are generally higher than
Term Life Insurance, but this option offers a savings component known as a Cash Value. The monies
paid in premium are divided between premium and savings. The money saved in the Cash Value
Account will grow tax deferred and will be available to you as a loan or withdrawal even if your credit
history is shaky. Although the premiums for Permanent or Whole Life Insurance tend to be higher than
those for Term Life Insurance, one advantage is that the death benefit is not limited to a pre-determined
timeframe. The major types of Whole Life Insurance policies are: Whole Life, Universal Life, Variable
Life, and Variable Universal Life.

Whole Life or Ordinary Life:
This is the most common type of permanent life insurance. It provides a death benefit and a savings
account. The savings element would grow based on the dividends the company pays.

Universal or Adjustable Life:
Universal Life offers you more flexibility than an Ordinary Life policy. You may be able to
increase/decrease the death benefit, and as the Cash Value accumulates, you have the flexibility to
reduce your premium. Having flexibility in the death benefit often eliminates the need to purchase
multiple policies as your situation changes.

Variable Life:
This policy combines death protection with a savings account that you can invest in stocks, bonds, and
money market mutual funds. The value of your policy may grow more quickly, but you also have more
risk. If your investments do not perform well, your cash value and death benefit may decrease.

Variable Universal Life:
Variable Universal Life combines a Variable Life Policy and a Universal Life Policy. You have the
potential investment rewards and risks of a Variable policy, coupled with the ability to adjust your
premiums and death benefit as is characteristic of a Universal Life Insurance Policy.
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