Life Insurance

Life insurance is designed to provide you with the reassurance that your dependents will be looked after if you’re no longer there to provide.

Term Life Insurance

Term life insurance is designed to pay a death benefit when the insured passes. It can be customized for length to provide a level premium over a specific period and/or the death benefit can be surrendered which can lower the premium as well. The word “Term” in Term life insurance refers to how long the policy is designed to provide a level premium. Once outside the “Term” the policy does not expire, instead the premium increases and the individual decides whether to pay the higher premium to keep the policy in force or to let it lapse and lose the death benefit protection.

Cash Value Life Insurance (CVLI) plans

Cash Value Life Insurance is more of a plan and less of a product. Utilizing a Cash Value Life Insurance Plan (CVLI) is a long-term plan (usually life-long). It is designed to get you from where you are today to whenever you die while also providing numerous living benefits along the way. Per current laws, the cash value of CVLI must equal the Policy’s Death Benefit at Age 121. Premiums are higher in CVLI plans (when compared to Term Life Insurance) because part of the premium is going towards the cost of the death benefit insurance and part of the premium goes into the Policy’s Cash Value, which is accessible to the Policy Owner at any time and income tax free up to the cost basis. The cash value also grows on a tax deferred basis. CVLI plans can be designed with a lot of guarantees or a lot flexibility. Generally, the more guarantees the less the flexibility and vice versa. As a person progresses through the different stages of their financial life, the plan will automatically adjust to emphasize the most important aspect of that stage. Those stages are Contribution, Accumulation, Distribution, and Transfer. During the Contribution stage (when the plan is being implemented) the premium (the policy’s contribution) can be matched to fit the current lifestyle. The accumulation phase follows and the person benefits from tax deferred cash value growth, access to the cash value, creditor protection, and death benefit protection. When the person retires and moves into the Distribution stage, the policy can provide a stream of tax-free supplemental income and access to cash value for emergency items that may arise. The premiums can be reduced as well to provide relief to a fixed budget. When the person ultimately dies, the tax-free death benefit will be paid to the beneficiaries representing a legacy, to help pay funeral and burial expenses, or provide liquidity to the person estate.

Cash Value Plans can provide the following benefits and features:

• Cash Value Growth

          o  Whole Life provides more guarantees

          o  Universal Life provides less guarantees but potentially higher cash value growth

• Competitive returns
• No Loss Provisions
• Creditor Protection
• High Contributions
• Flexible Contributions
• Guaranteed Death Benefit
• Tax-Deferred Cash Value Growth
• Tax-Free Distributions
• Collateral Opportunities
• Cash Value Liquidity, Use, and Control
• Disability, Chronic Illness, and Accelerated Death Benefit options