Product Category ComparisonBack to Financial Product Overview
What is the difference between term life insurance and whole life insurance? How is a life insurance certificate different from an annuity? This chart outlines some of the major features that differentiate each type of product. Click on a category name to see a full list of our products available in that category.
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Life Insurance Plans
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Financial Products
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Death Benefit |
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Yes
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Yes
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Yes
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Yes, however annuities are generally purchased to ensure adequate income for retirement
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Premiums |
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Level while whole life insurance is in force
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Level for specified years of coverage
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Flexible
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Available in flexible (can be made in varying amounts over time) or as a single premium
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Cash Value |
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Yes
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No
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May, if adequately funded; varies based on cost of insurance, amount of premium paid, and interest rate earned
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Yes; the purpose of an annuity is to accumulate cash over time
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Dividends |
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Yes, but not guaranteed
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Allowed but not expected to be paid, and not guaranteed
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Allowed but not expected to be paid, and not guaranteed. May earn excess interest if contract paying above guaranteed rates
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No
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Advantages |
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Level premiums; cash value builds up and can be accessed by a loan or used to pay premiums when needed
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Level premiums over life of contract; good for those on a budget
or who need coverage for limited period of time; can convert to whole life insurance
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Flexibility: premiums and face amount may be changed; cash value potentially higher than that of whole life insurance due to interest earned on contract value and amount of flexible premiums paid
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Flexible premiums; can be used to guarantee fixed income for life after retirement
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Disadvantages |
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Typically higher premiums than term life insurance
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No cash value;
at end of term cost of insurance for new contract may increase
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Some risk; contract value depends on interest rates, cost of insurance, and premiums paid
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Some risk; values depend on interest rate earned over time and amount of premiums paid
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For information and help in choosing the products that may be right for you, contact our member sales team at (866) 845-6665. |