Life Insurance

Life insurance is a part of your personal and family safety net, it is the foundation for financial security. Life insurance reduces uncertainty, but does not eliminate risk. Life Insurance reduces loss by assigning the larger risk to an insurance company.

Here are some key personal reasons for buying life insurance.

Survivor Protection – Especially for a young family to preserve an established lifestyle.

Estate Creation – Significant amounts for beneficiaries and dependents are provided.

Estate Conservation – Loans, accounts, estate taxes, final expenses, all can be planned to preserve an insured’s estate.

Cash Accumulation – Certain types of life insurance accumulate cash value, with the policy serving as the financial vehicle for savings. The savings are usually accessible by the policy owner.

And here are some business reasons.

Key Employees - Remember, the business is the primary beneficiary of this type policy, not the employees family, and key employee insurance has nothing to do with retirement or other employee benefits. The purpose is solely to compensate the business in order to replace the experience and value of the loss.

Buy Sell Agreements – This is an automatic way of transferring ownership of a partnership or closed corporation at a set established price. When there is a small business ownership group, the cost of not planning can put the hands of relatives directly on the business. In addition, there can be a loss of income to the survivors family and in some events, there may have to be liquidation of business assets to satisfy ownership interests.

Deferred Compensation – An agreement that lets an employer provide certain amounts of money at a future date that usually is tax deferred to the employee until they receive the benefit. It is a type of incentive program.There are many types of life insurance, each addressing a specific personal or business purpose when purchased.

Here are some of the types.

Term Insurance – Probably the most understood as it provides protection for a specific period of time, usually expiring at age 65 or after a specific period of time, such as 20 years. And there is no cash or loan value, it strictly provides protection.

Whole Life Policies – This policy has many features to include building cash, loan and nonforfeiture values. Policy owners may borrow cash value. The pure insurance protection is the face value minus the cash value, the relationship exists that the more the cash value increases the less the pure protection would be, but the face amount would not change.

Straight Life Insurance - Both the premium and the face amount remain level to age 100 unless benefits are payable sooner.

Limited Payment Life Insurance – The premiums are paid for a certain period of time, such as 20 years or 30 years with the face amount paid at age 100 or sooner if required.

Single Premium Life Insurance – The complete policy is paid for in just one large payment with the face amount payable at age 100 or sooner if required.

Adjustable Life - Usually a level premium, level face amount benefit policy that can be in either term or whole life structure. The main feature of the policy is that the insured can make changes without adding or exchanging the existing policy. This is a great way to address the situation where income fluctuates.

Universal Life – The flexible premium schedule is what separates this policy from Whole Life. And other flexibility is inherent in the policy. The policyholder may request changes in face value or frequency of premium, and may borrow or make partial withdrawals without terminating the policy. Cash value and pure life insurance are part of the Universal Life structure.

Variable Life Insurance – It has the structure of a fixed premium Whole Life policy whose face value and cash value can fluctuate depending upon the success of a related investment pool. Variable life policies were originally offered as a hedge against inflation, the thinking that the securities market could offer greater returns than traditional fixed interest bonds or certificates of deposit. For that reason, Variable Life policies are considered securities and can only be sold by agents licensed by the NASD.

In addition there are many specialized life insurance policies to include:
Family Income/Maintenance
Family Protection Plan
Juvenile
Modified Whole Life
Graded Premium
Joint Life/Survivorship

And there are many varied Riders to attach to different policies to include:
Accidental Death
Guaranteed Insurability
Return of Premium
Return of Cash Value
Cost of Living
Living Need
Waiver of Premium
Waiver of Payors Premium
Waiver of Premium/Disability Income
Waiver of Cost of Insurance
Spouse, Child, or Family

Life Insurance needs are determined by planning. A solid understanding of your personal financial structure is the first step towards determining the amount of life insurance needed. Then couple that with your vision for your family or business, and the total life insurance needed will become apparent. Finally, assess how much you want to commit financially to protect your business or family, and the final structure will come together.

FOR A FREE LIFE INSURANCE QUOTE PLEASE CALL TOLL FREE 877-732-1793 OR COMPLETE OUR SECURED ON-LINE APPLICATION.

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