InsureU - NAIC

  • Insure U offers unbiased and trusted consumer resources from the NAIC.
  • The program’s robust website provides consumers with helpful tips and information about insurance—and because individual coverage needs vary, materials are provided for various life situations.
  • The site also features quizzes and public service announcements to help consumers Get Smart About Insurance.

2011 1207 - NAIC/FIO Meeting on Market Conduct - (Documents shared with FIO to facilitate discussion are attached) - 83p

  • insureuonline.org/insureu_type_life.htm - Life Insurance: It's more than a death benefi
    • Permanent Life Insurance Options 
      • Unlike term insurance, all permanent policies remain in place as long as the premium is paid.
      • They also all have a cash value component that increases over time and allows the owner to borrow against that cash value.
      • There are four types of permanent life insurance:
        1. Whole Life Insurance
          • Offers a fixed premium for the duration of the policy, guaranteed annual cash value growth and a guaranteed death benefit.
          • Does not provide investment flexibility and, once established, you are not allowed to change the policy coverage.
        2. Universal Life Insurance
          • Allows the policyholder to determine the amount and timing of premium payments (within certain limits) and to adjust coverage levels as needs change.
          • Includes guaranteed annual cash value growth but no investment flexibility.
        3. Variable Life Insurance
          • Allows allocation of investment funds across stocks, bonds or money market accounts with different levels of risk and growth potential.
          • A minimum cash value is not guaranteed because of market fluctuation, and coverage amounts cannot be changed.
          • Exposes the policyholder to greater market risk, but has the potential for greater long term returns compared to whole or universal life insurance policies.
        4. Variable Universal Life Insurance
          • Combination of variable and universal life insurance.
          • Offers the most flexibility (compared to other permanent life insurance options) with the ability to vary premium payments, investments and coverage amounts.
          • Allows investment in a variety of market products chosen by the policyholder, and may allow policyholders to make tax-free transfers among investments.
          • Exposes the policyholder to greater market risk than whole or universal life policies.