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Life Insurance
Life insurance offers protection from life's unforeseen risks, and the power to leverage assets so you can accomplish more. Life insurance has tax advantages and flexibilities to help you meet your changing needs. Your financial security could affect your loved ones as much as, or more than, it affects you. Life insurance can provide:
There are basically 2 types of Life insurance:
Term Life Insurance: Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Permanent Life Insurance: Many wonder what the difference is between term & permanent insurance. It can help to compare term & permanent life insurance to determine which type of life insurance is best for your particular situation.
Permanent life insurance coverage usually provides a guaranteed death benefit along with guaranteed cash values. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis (based on current federal tax laws). The premium payments are typically for the rest of your life, or your whole life.
All life insurance was originally temporary (term) insurance. However, because term life insurance only pays a claim upon early premature death within the stated term, a number of term insurance policy holders became upset over the idea that they would most likely be paying premiums for 20 or 30 years and then wind up with nothing to show for it. Temporary insurance only pays out 2-3% of the time. This has become known as the "Lost Opportunity Cost" called term insurance.
In response to market pressures, actuaries produced an insurance policy with level contributions that would last a lifetime. These contracts would offer a "cash value" which was designed to be cash reserve that would build up against the known claim-–the death benefit. These policies would also credit guaranteed interest to the cash value account. Upon maturity of the contract (usually at age 95 or 100), the cash value would equal the death benefit. By guaranteeing the death benefit, the policy owner was assured that insurance coverage would be in force when the insured died, allowing them to unlock and exploit other assets. Upon the death of the insured, the cash value would be surrendered to the insurance company and the beneficiary would receive the death benefit. If, before their death, the insured wished to borrow the cash value and forfeit the death benefit, the cash value would be paid back with interest minus dividends paid, making it the lowest cost way to access one's wealth.
Should you have any questions or concerns about whether Life Insurance is right for you, please take a moment and contact us on the Home Page or under the More/Contact drop down menu.
Life insurance offers protection from life's unforeseen risks, and the power to leverage assets so you can accomplish more. Life insurance has tax advantages and flexibilities to help you meet your changing needs. Your financial security could affect your loved ones as much as, or more than, it affects you. Life insurance can provide:
- Financial protection for your loved ones or your business
- Income replacement
- Supplemental retirement income
- Account value growth that can be used as a financial resource
- Tax-deferred efficient wealth transfer solutions
- A funding vehicle for business owners
- Asset accumulation
There are basically 2 types of Life insurance:
Term Life Insurance: Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Permanent Life Insurance: Many wonder what the difference is between term & permanent insurance. It can help to compare term & permanent life insurance to determine which type of life insurance is best for your particular situation.
Permanent life insurance coverage usually provides a guaranteed death benefit along with guaranteed cash values. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis (based on current federal tax laws). The premium payments are typically for the rest of your life, or your whole life.
All life insurance was originally temporary (term) insurance. However, because term life insurance only pays a claim upon early premature death within the stated term, a number of term insurance policy holders became upset over the idea that they would most likely be paying premiums for 20 or 30 years and then wind up with nothing to show for it. Temporary insurance only pays out 2-3% of the time. This has become known as the "Lost Opportunity Cost" called term insurance.
In response to market pressures, actuaries produced an insurance policy with level contributions that would last a lifetime. These contracts would offer a "cash value" which was designed to be cash reserve that would build up against the known claim-–the death benefit. These policies would also credit guaranteed interest to the cash value account. Upon maturity of the contract (usually at age 95 or 100), the cash value would equal the death benefit. By guaranteeing the death benefit, the policy owner was assured that insurance coverage would be in force when the insured died, allowing them to unlock and exploit other assets. Upon the death of the insured, the cash value would be surrendered to the insurance company and the beneficiary would receive the death benefit. If, before their death, the insured wished to borrow the cash value and forfeit the death benefit, the cash value would be paid back with interest minus dividends paid, making it the lowest cost way to access one's wealth.
Should you have any questions or concerns about whether Life Insurance is right for you, please take a moment and contact us on the Home Page or under the More/Contact drop down menu.
