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Comparison of types of life insurance

  Term Whole Life Universal Life Variable Life Variable Universal Life
Premium Premiums start low, increase at each renewal Level Flexible Level Flexible
Coverage Usually renewable until at least age 70; for some policies, up to age 95 For life For life For life For life
Death benefit Guaranteed Guaranteed May be guaranteed, depending on policy Guaranteed May be guaranteed, depending on policy
May increase with dividends* Can be increased or decreased Varies relative to cash value investment returns Can be increased or decreased; varies relative to cash value investment returns
Cash value None Guaranteed Guaranteed minimum interest rate Not guaranteed Not guaranteed
May increase with dividends* Varies based on interest rates Fluctuates with underlying investment performance Fluctuates with underlying investment performance
Policy loans allowed? Not applicable Yes Yes Yes Yes
May be able to borrow up to 100% of total cash surrender value less annual loan interest rate Same as whole life, but usually available at lower net interest rate (i.e., pay the interest rate and get a credit back to the policy) Same as whole life, but usually available at lower net interest rate (i.e., pay the interest rate and get a credit back to the policy) Same as whole life, but usually available at lower net interest rate (i.e., pay the interest rate and get a credit back to the policy)
Cash withdrawals allowed? Not applicable No Yes No Yes
Cash value account growth No cash value account Insurance company determines guaranteed cash value and declares dividends based on performance of its general investment portfolio* Insurance company determines cash value interest crediting rates based on current interest rate returns to the company Cash value account growth depends upon the investment performance of the subaccounts you choose Cash value account growth depends upon the investment performance of the subaccounts you choose

*Dividends are not guaranteed.

Note: Any guarantees associated with payment of death benefits, income options, or rates of return are subject to the claims-paying ability of the insurer.

Note: Policy loans and withdrawals will reduce the policy's cash value and death benefit and may cause the policy to lapse. Withdrawals may be subject to surrender charges and income tax, and a 10% penalty may apply to withdrawals from a modified endowment contract if made under age 59½.

Note: Variable life and variable universal life insurance policies are offered by prospectus, which you can obtain from your financial professional or the insurance company. The prospectus contains detailed information about investment objectives, risks, charges, and expenses. You should read the prospectus and consider this information carefully before purchasing a variable life or a variable universal life insurance policy.