Whether it's used for income protection, estate planning, wealth preservation and transfer, or a tax-shelter, life insurance is the cornerstone of any strong financial plan.
Fundamentally, life insurance answers the question: "If I die tomorrow, what does my family or business financially need to maintain its current lifestyle or operations without feeling stress?"
Your exposure, needs and eligibility, as well as your available budget, drive the personalized development of your strategic solution. Sometimes, one policy will meet your needs. Other times, a combination of term and permanent coverage is a better fit. As an Independent Agent, I work with, and for, YOU, rather than for one insurance company. Different companies have different strengths in underwriting, pricing and benefits, and we will work together to create the most responsible and efficient plan to meet your needs and fit into your budget.
When you were
born, we promised
to take care of you,
no matter what...
TYPES OF LIFE INSURANCE PRODUCTS:
Term Insurance: If coverage on a budget is your main concern, and you do not need or want a lifetime death benefit, term is usually your solution. There is no cash value available for the insured to use. Premiums are guaranteed to be level for 10, 15, 20 or 30 years.
Universal Life Insurance: allows permanent death benefit protection, beyond age 100. Flexible Premiums, Adjustable Life (Death Benefit). Interest is credited to the cash value in the policy, based on a conservative, stated interest rate assigned by the insurance company. That stated rate might increase or decrease on an annual basis, depending on the economic environment, but will never decrease below a guaranteed minimum interest rate. Level and Increasing Death Benefit options available.
Indexed Universal Life Insurance: allows permanent death benefit protection, beyond age 100. (Flexible Premiums, Adjustable Life (death benefit). Interest is credited to the cash value of the policy based on the performance of a financial index, often the performance of the S&P 500 Index. The advantage of Indexed Universal Life is that you receive the opportunity to do better than traditional fixed interest rates you receive in other safe money accounts, with complete downside protection. You can never lose money. When the market tanks, your floor is zero. So, while the account gains are capped in most allocation options, you never have to offset losses, and you pick up right where you left off when the market is back up and you start earning and compounding interest again on your cash value. Level and Increasing Death Benefit options available.
Whole Life Insurance: permanent coverage to age 100, at which time the policy endows. Guaranteed Cash Value. Dividends are generally paid annually to the policyholder, which can be used to purchase additional death benefit or be received in cash. Dividends are not taxed because they are not a gain, but, rather, a return of a portion of excess, unused premium.
Final Expense Coverage: Small whole life policies with limited underwriting and no physical exams. Death benefits range from $5,000 to $100,000. Designed for those looking for a small supplement to cover funeral and burial costs. These policies also allow people with several significant health challenges to qualify to have life insurance.
Modified Final Expense Coverage: Small whole life policies with no health underwriting. Death benefits max-out at $10,000 to $15,000. For the first 2-3 policy years, depending on the company, the death benefit paid to the beneficiary is a return of the premiums paid, plus interest. The rate is guaranteed in the contract and is usually 9%, or higher. After the initial modified period, the beneficiary will receive the contractual full death benefit at the time of claim. This is a win-win for someone who wants at least some death benefit coverage, but is uninsurable for a policy that requires health underwriting. Since life insurance death benefits are tax-free to the beneficiary, and interest paid on the premiums returned to the beneficiary at the time of a modified claim is part of the benefit, this is the one case where premiums act like a high-interest forced savings during the first 2-3 policy years. If the insured outlives the modified period, then the full policy death benefit is indefinitely available to the beneficiary, as long as the policy remains active. Win-Win.