American Portfolios Financial Services
Kenneth J Harasym
159 Route 25A
Building #1 Suite D
Miller Place, NY 11764
833-427-2796
866-505-7979 (Fax)
kharasym@americanportfolios.com
www.kenharasym.com
 
 




Life Insurance Basics

Note:  Any guarantees associated with payment of death benefits, income options, or rates of return are subject to the claims-paying ability and financial strength of the insurer. 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, as well as the underlying investment options. You should read the prospectus and consider this information carefully before purchasing a variable life or variable universal life insurance policy.

*Dividends are not guaranteed.

 

Comparison of Types of Life Insurance

TermWhole LifeUniversal LifeVariable LifeVariable Universal Life
PremiumPremiums increase at each renewalLevelFlexibleLevelFlexible
CoverageUsually renewable until at least age 70; for some policies, up to age 95For lifeFor lifeFor lifeFor life
Death benefitGuaranteedGuaranteedMay be guaranteed, depending on policyGuaranteedMay be guaranteed, depending on policy
May increase with dividends*Can be increased or decreasedVaries relative to cash value investment returnsCan be increased or decreased; varies relative to cash value investment returns
Cash valueNoneGuaranteedGuaranteed minimum interest rateNot guaranteedNot guaranteed
May increase with dividends*Varies based on interest ratesFluctuates with subaccount performanceFluctuates with subaccount performance
Policy loans allowed?Not applicableYesYesYesYes
May be able to borrow up to 100% of total cash surrender value less annual loan interest rateSame 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 applicableNoYesNoYes
Cash value account growthNo cash value accountInsurer determines guaranteed cash value and declares dividends based on performance of its general investment portfolio*Insurer determines cash value interest crediting rates based on current interest rate returns to the companyCash value account growth depends upon the investment performance of the subaccounts you chooseCash value account growth depends upon the investment performance of the subaccounts you choose


Securities offered through American Portfolios Financial Services, Inc. Member FINRA/SIPC (FINRA/SIPC). American Portfolios Financial Services, Inc. and American Portfolios Advisors, Inc. are not affiliated with any other named business entities mentioned. This communication is strictly intended for individuals residing in the state(s) of CT, FL, GA, MA, MD, NC, NH, NJ, NY and PA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.