Permanent / Whole Life Insurance
Quick fact - life insurance cost is based on your current age, medical history/conditions, gender and if you're a non-smoker or smoker. The youngest age for coverage is 14 days old! This type of policy can grow with you (from baby to adulthood, to retirement then leaving a financial legacy) - tax free.
Permanent Life Insurance means coverage until 100 years old or 121 years old depending on the type of policy selected. Unlike term policies that 'expire' anywhere from 10-40 years later.
Types of permanent life insurance:
+ Whole Life (Children & Adult policies)
+ Universal Life / Fixed or Index Universal Life (IUL)- does not participate in the stock market (no loss guarantee, with only upside potential for cash accumulation)
+ Guaranteed Universal Life (GUL) - fixed death benefit but builds little to no cash value.
+ Variable Life, similar to 401ks (participates in the stock market, losses are unknown & upside is unknown)
All of the above accumulate cash in addition to the death benefit or face value of a permanent policy.
*How much cash accumulates depends on the type of permanent policy chosen.*
Term (Temporary) Insurance
Can be beneficial for different needs -
- Can be combined with whole life for more insurance coverage
- It is the most affordable BUT expires within 10 - 40 years (meaning there is no coverage after a specified number of years).
- Options to renew or covert to permanent policy before end of term.
After the insured transitions, this type of policy can be used for:
- Burial expense or ceremony
- Paying off mortgage or other debt
- Pay for school, entrepreneurship,
- Leave a financial legacy to individuals or organizations
If the insured becomes medically ill, this type of policy can be used to:
- Replace income not earned while medically ill; by activating living benefits, if diagnosed with chronic, critical, or terminal illness
Quick Facts:
- Majority of employers offer this type of insurance ONLY while you are employed
- Provides payout to beneficiaries upon death
- No cash accumulation in Term policies
Importance of Living Benefits
Final Expense / Burial Insurance
Limited to adults 45 -85 years old
This is a form of whole life / permanent insurance
Coverage starts at $5,000 to $50,000 maximum
Premiums are paid monthly, quarterly or annually for the rest of lifetime to pay out the coverage amount to beneficiaries.
Business Insurance Options
Key Person
Covers the life of a key employee; in the event of death, the company will recover financially. Also covers the loss of financial contribution and hiring a replacement.
Buy-Sell Agreements
Provide security for the spouse or heirs & provide income for future purchase of interest
- Cross Purchase
Each owner buys a life insurance policy on the other owner to fund this agreement
- Entity Purchase
Business obtains written consent to insure owners' lives and pay premiums for their coverage
- One Way
Owner has agreement with non-owner to purchase business upon owner's death.
Non-Owner purchases life insurance on the owner; upon the owner's death the proceeds from policy go to the non-owner.
Executive Bonus Plan
Offered as a benefit to key employees that include cash value life insurance (additional life coverage and tax free growth of supplemental income).
Disability
Provides income in the event that a policyholder is prevented from working and earning an income due to a disability
Annuities
Are tax deferred insurance products. There are various types and features depending on the company and product selected. The benefit is in the ability to customize it to meet your needs & the enormous compounding benefits.
What's so great about Annuities?
Guaranteed Lifetime Income
Can provide potentially higher monthly income than with other products
Through the death benefit, avoid probate and pass money to beneficiaries
Tax deferred accumulation of interest (not taxed until withdrawn)
Supplemental income
Click on the contact us link & lets talk about annuity options that could work for your specific needs
Retirement Planning via Life Insurance
"You cannot escape the responsibility of tomorrow by evading today." - Abraham Lincoln
Retiring more than 10 years from now:
Lets Talk About -
Your current lifestyle
What does retirement look like for you?
Are your future needs same or different?
3-5 more years before retirement:
How much is saved in retirement account, separate savings now?
Will expenses be less, the same, or more?
Currently in retirement:
Does anything keep you awake at night, as it relates to your retirement income?
Future Lifestyle Retirement:
Financial Freedom
Generational Wealth
Peace of mind that regardless of the economic market the family and business will thrive because your money works for you; and your principal is not depleted.
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