YOUR AGENT'S RECOMMENDATION

YOUR AGENT'S RECOMMENDATION

Once you have discussed your financial needs and objectives with
your agent, he or she will recommend the type of life insurance
policy that will best suit your purposes. Often, the agent
will provide a "policy illustration" that will show how your
policy will work. (See page 16.)

Carefully study your agent's recommendation and ask for a
point-by-point explanation if there are items you don't
understand. Because your policy is a legal document, it's
important that you know what it provides.

Here are some other questions you should ask:

Does this policy truly meet my needs?

If your agent recommends a term policy, consider the following:l
How long can I keep this policy?
If you want the option to renew the policy for a specific number
of years or until a certain age, ask your agent about the terms
of renewal of the contract.l When will my premiums increase?
Annually? Or after a longer period of time, such as five or 10
years?l Can I convert to a permanent policy? Some policies allow
you to convert the policy to permanent insurance without a
medical exam, regardless of your physical condition at the time
of the conversion. These policies are known as "convertible
term."


If your agent recommends a permanent policy, consider the
following:
Are the premiums within my budget? Be sure you want to spend the
money for this type of long-term coverage.l Can I commit to
these premiums over the long term?l Make sure you know the amount
you would receive if you surrender your policy.Keep in mind that
permanent insurance is designed to provide protection for
your entire life. If you don't plan to keep the product
for many years, consider another type of policy. Cashing in a
permanent policy after only a couple of years can be a costly way
toget insurance protection for a short term.

What does my policy illustration show? An illustration shows
policy premiums, death benefits, cash values and information
about other items that can affect your cost of obtaining
insurance. Some of the items listed in the illustration are used
by the insurance company to reduce your costs if its future
financial results are favorable. Your policy may provide for
dividends to be paid to you as either cash or paid-up insurance.
Or it could provide for interest credits that could increase your
cash value and death benefit or reduce your premium. These items
are not guaranteed. Your costs or benefits could be higher or
lower than those illustrated, because they depend on the future
financial results of the insurance company. With variable life,
your values will depend on the results of the underlying
portfolio of investments.

Ask your agent for an explanation of the illustration; some
figures are guaranteed and some are not. Remember that the
insurance company will honor the guaranteed figures regardless of
its future financial experience.

If your policy is a variable life policy, be sure that the
interest rate assumed is reasonable for the underlying investment
accounts to which you choose to allocate your premiums. For
example, some investment advisors suggest that a higher interest
rate assumption may be warrant-ed if you plan to allocate your
premium to a stock account, while a lower rate should be assumed
for more conservative alternatives.

It is important to keep in mind that an illustration is not a
legal document. Legal obligations are spelled out in the policy
itself.

Here are additional questions to ask about the policy
illustration:

Is the illustration up to date? Is it based on current
experience?l Is the classification shown in the illustration
appropriate for me (i.e., smoker/non-smoker, male/female)?l When
are premiums due annually, monthly or otherwise?l Which figures
are guaranteed and which are not?l Will I be notified if the
non-guaranteed amounts change? Does the policy have a guaranteed
death benefit, or could the death benefit change depending on
interest rates or other factors?l Does the policy pay dividends
or provide for interest credits? Are those figures incorporated
into the illustration?l Will my premiums always be the same? Is
it possible that the premium will increase significantly if
future interest rates are lower than the illustration assumes?l
If the illustration shows that, after a certain period of time, I
will not have to make premium payments, is there a chance I could
have to begin making payments again in the future?l Is the
premium level illustrated sufficient to guarantee protection for
my entire life?

What happens if I fail to make the required premium payments?
If you miss a premium payment, you typically have a 30- or 31-day
grace period during which you can pay the premium with no
interest charged. After that, the company can with your
authorization draw from a permanent policy's cash value to keep
that policy inforce. In some flexible premium policies, premiums
may be reduced or skipped as long as sufficient cash values
remain in the policy. However, this will result in lower cash
values.

What happens if I become disabled and can't pay the premiums on
my policy?
Provisions or riders that provide additional benefits can be
added to a policy. One such rider is a waiver of premium for
disability. With this rider, if you become totally disabled for
aspecified period of time, you do not have to pay premiums for
the duration of the disability.

Are other riders available?
Another rider, called an "accidental death benefit", provides for
an additional benefit in case of death as a result of an
accident.


A relatively new rider offered by some companies provides
"accelerated benefits," also known as "living benefits." This
rider allows you, under certain circumstances, to receive the
proceeds of your life insurance policy before you die. Such
circumstances include terminal or catastrophic illness, the need
for long-term care or confinement to a nursing home.

Ask your agent for information about these
and other policy riders.

When will the policy be in effect?If you decide to purchase the
policy, find out when the insurance becomes effective. This could
be different from the date the company issues the policy.

Is a "Buyer's Guide" available?
Most state insurance departments require companies to provide
consumers with a buyer's guide to help them understand life
insurance terms, benefits and costs.
Ask your agent for a copy.