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There are two primary categories of life insurance: term and cash value. However, there are several different types within each category. Listed below are some of the most common types. Consult your life insurance producer for a more detailed description of the various types of life insurance and how they may apply to your specific situation.

Term Insurance - Life insurance under which the death benefit is payable only if the insured dies during a specified period. Listed below are various types of term insurance.

  • Level Term - a fixed amount of coverage with premiums that are fixed over a certain period of time, usually in 10-year increments.
  • Increasing/Decreasing Term - amount of coverage increases or decreases throughout the term, premiums typically remain level.
  • Renewable Term - includes a renewal provision that gives the policyowner the right to renew the insurance coverage at the end of the specified term without submitting evidence of insurability.
  • Convertible Term - gives the policyholder the right to convert the term policy to a permanent policy.
  • Group Term - insurance purchased typically by an employer or professional association that is intended to cover several people, usually resulting in reduced premiums.
Cash Value Life Insurance - Life insurance designated to offer coverage throughout the insured's lifetime and may include an element that builds cash value.
  • Indexed Universal Life - a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance under which the cash value's current crediting rate is based in part on the performance of a financial index. Most policies offer guarantees that if the index is negative, the crediting rate will not go below zero.
  • Traditional Whole Life - remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance may also include an element for accumulating growth (called "cash value").
  • Universal life insurance - characterized by its flexible premiums, flexible face amounts, and unbundled pricing factors.
  • Variable life insurance - a form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of separate account investment options. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum.
  • Variable universal life insurance - a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of variable life insurance. Also called flexible premium variable life insurance and universal life II.
  • Last survivor universal life insurance (also known as "survivorship" or "second-to-die" life insurance) - permanent life insurance that covers two people (e.g., a husband and wife) and provides for payment of the death benefit proceeds only when both insureds have died. It is generally designed to pay estate taxes.
  • Single-premium whole life insurance - whole life insurance purchased with a single, lump-sum premium.  



For more information on this subject, and professional guidance in selecting the right kind and amount of insurance coverage, contact your life insurance producer.

This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Variable Universal Life Insurance, Indexed Universal Life Insurance and Universal Life Insurance generally require additional premium payments after the initial premium. If either no premiums are paid, or subsequent premiums are insufficient to continue coverage, it is possible that coverage will expire.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Insurance products and their guarantees, including optional benefits and any fixed subaccount crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company, but they do not protect the value of the variable investment options. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency or their affiliates from which this product is purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company. Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and an affiliate of Pacific Life & Annuity Company, and are available through licensed third-party broker-dealers.

Pacific Life's Home Office is located in Newport Beach, CA.