VARIABLE UNIVERSAL LIFE INSURANCE
A type of life insurance that combines a death benefit with an investment element that accumulates tax deferred. The account value can be allocated into a variety of investment sub-accounts. The investment return and principal value of the variable sub-accounts will fluctuate; thus, the policy’s account value, and possibly the death benefit, will be determined by the performance of the chosen sub-accounts and is not guaranteed. Withdrawals may be subject to surrender charges and are taxable if the account owner withdraws more than his or her basis in the policy. Policy loans or withdrawals will reduce the policy’s cash value and death benefit and may require additional premium payments to keep the policy in force. There may also be additional fees and charges associated with a VUL policy. Any guarantees are contingent on the claims-paying ability of the issuing company. Variable universal life is sold by prospectus. Please consider the investment objectives, risks, charges, expenses, and your need for death-benefit coverage carefully before investing. The prospectuses, which contains this and other information about the variable universal life policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Persons for whom guardians are appointed, usually minors or incompetent persons.
WILL (LAST WILL & TESTAMENT)
An instrument (testament) executed by a testator which sets out the testator’s instructions for winding up his/her affairs after death. The will has no effect until the testator dies. It is common for a Testator to nominate Guardians for their minor children in a will.
WHOLE LIFE INSURANCE
A type of life insurance that offers a death benefit and also accumulates cash value tax deferred at fixed interest rates. Whole life insurance policies generally have a fixed annual premium that does not rise over the duration of the policy. Whole life insurance is also referred to as “ordinary” or “straight” life insurance. Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Policy loans or withdrawals will reduce the policy’s cash value and death benefit. Additional out-of-pocket payments may be needed if actual dividends or investment returns decrease, if you withdraw policy values, if you take out a loan, or if current charges increase. There may be surrender charges at the time of surrender or withdrawal and are taxable if you withdraw more than you basis in the policy. Any guarantees are contingent on the claims-paying ability of the issuing company. The cost and availability of the life insurance depend on factors such as age, health, and the type and amount of insurance purchased.