Life Insurance

 

Term Life Insurance

Term life insurance:

  • Provides guaranteed death benefit protection with a level premium for 10-, 15- or 20-years.

  • Can be converted to a permanent policy, even if your health deteriorates.

  • Does not offer a savings component, cash accumulation or loan features.

Whole Life Insurance

Whole life insurance can provide affordable permanent protection for your family and has a savings component that builds cash value.

  • Provides a guaranteed death benefit to protect your family.

  • Offers a guaranteed premium structure, which means your premiums will never increase, but may be reduced or eliminated.

  • Builds cash value that can only increase over time. 

  • Offers dividends. When dividends are declared, they may be credited to your policy, further increasing the cash value and death benefit.


Universal Life Insurance

A universal life (UL) insurance policy can be more flexible than other permanent policies, so you can customize it to fit your lifestyle.


Universal life insurance:

  • May provide a guaranteed death benefit, ensuring the financial stability of your family.

  • Gives you the flexibility of choosing how much, and when, to make premium payments. (Depends upon the cash value in your policy.)

  • Accumulates tax deferred and is accessible on a tax-preferred basis and is generally income tax free (under current tax law) to your beneficiary upon your death.

 

Disability Insurance


What is disability income insurance?

Disability income (DI) insurance helps provide you with replacement income if you are unable to work due to an illness or injury that is covered by the policy. DI insurance can help cover your medical bills, your house payment and other common monthly expenses.


What is the benefit of having disability income insurance?

One of your most valuable assets is your ability to earn a living. Take away your income, and it is amazing how quickly you can deplete savings and even incur large debt just trying to cover your regular monthly expenses. 

Another advantage is that unlike an employer-paid group long-term disability (LTD) plan, an individual DI insurance product is "portable." That means you own the policy, and it stays with you even if you change jobs.


What are the different types of disability income insurance?

DI insurance policies for individuals typically come in one of two forms:

  • Non-Cancellable: Guarantees that as long as you pay the premiums, your DI policy cannot be cancelled, and your premium rate will be locked in for a set number of years. This policy is available for people working in professional, executive, white-collar and gray-collar technical occupations.

  • Guaranteed Renewable: Guarantees that you can renew the policy with the same benefits as long as you continue to pay the premiums. There is the possibility your premium will increase. This policy is available for skilled technicians, on-site supervisors, manual laborers and people working in certain trades. 

Owners of small businesses, including medical and legal practices, also need to consider DI insurance to protect the owners' interests. Coverage options are:

  • Business Overhead Expense (BOE): Reimburses small-business owners for the expenses required to maintain the business as a going concern if an owner is disabled.

  • Buy-Sell: Provides the funds to assist in the purchase of a disabled person's ownership interest in a partnership or other small business. 


Who needs it?


Just about everyone. Whether you are single, married, have children, or own a business, a disability that keeps you out of work can be costly. To maintain your standard of living in the event of disability, it is important to consider this coverage.

You might like to know...

Insuring against disability has not been a high priority for most workers, because many assume they are already covered through Social Security, workers' compensation or employer plans. It is important to note, however, that each of these plans has limitations and should not be solely relied upon for income replacement during disability. An individual DI policy can help supplement these plans and provide additional confidence.


It can happen to you.


 
 
 

Annuities

Fixed Annuities

A fixed annuity is a type of insurance contract that promises to pay the buyer a specific, guaranteed interest rate on their contributions to the account. By contrast, a variable annuity pays interest that can fluctuate based on the performance of an investment portfolio chosen by the account's owner. Fixed annuities are often used in retirement planning.

 

Investors can buy a fixed annuity with either a lump sum of money or a series of payments over time. The insurance company, in turn, guarantees that the account will earn a certain rate of interest. This period is known as the accumulation phase.

When the annuity owner, or annuitant, elects to begin receiving regular income from the annuity, the insurance company calculates those payments based on the amount of money in the account, the owner's age, how long the payments are to continue, and other factors. This begins the payout phase.

 

The payout phase may continue for a specified number of years or for the rest of the owner's life.

During the accumulation phase, the account grows tax-deferred. Then the account holder annuitizes the contract, distributions are taxed based on an exclusion ratio. This is the ratio of the account holder's premium payments to the to the amount accumulated in the account that is based on gains from the interest earned during the accumulation phase. The premiums paid are excluded and the portion attributable to gains is taxed. This is often expressed as a percentage.

 

This situation applies to non-qualified annuities, which are those not held in a qualified retirement plan. In the case of a qualified annuity, the entire payment would be subject to taxes.

Fixed Indexed Annuities

A fixed index annuity is a type of fixed annuity that credits interest based on the performance of an external stock market index providing the potential to earn higher interest rates than offered by a fixed annuity. Fixed index annuities provide an opportunity to earn higher interest rates than a fixed annuity or any other investment product offering principal protection. A fixed index annuity can help you build a source of guaranteed lifetime income, save for a specific retirement goal, or leave a legacy for your loved ones.

The primary benefits of an index annuity are: tax deferral, potential for higher interest rates, and principal protection from downturns in the financial markets.

Under current federal income tax law, any interest earned in your fixed index annuity contract is tax deferred. You don’t have to pay ordinary income taxes on any taxable portion until you begin receiving money from your contract. Withdrawals are taxed as ordinary income and, if taken prior to age 59½, a 10% federal additional tax may apply.

 

Fixed index annuities provide an opportunity for potential interest growth based on changes in one or more indexes. Because of this potential indexed interest, FIAs provide a unique opportunity for accumulation, and since the interest your contract earns is tax-deferred, it may accumulate assets faster. In addition to potential indexed interest, FIAs can offer you an option to receive fixed interest.

Business Owner Solutions

Successful businesses are built on a variety of assets: equipment, inventory, real estate, accounts receivable, cash, goodwill and key people. They're also built on smart choices and planning for a variety of situations.

  • Business Overhead Expense Policy: Help protect your business from an unexpected illness or accident with a disability income insurance policy.

  • Buy-Sell Planning: Life insurance and disability income insurance policies providing for the sale of a business when a specified event happens.

  • Executive Bonus Plan: A simple, yet powerful, fringe benefit that lets you, the employer, purchase life insurance on yourself and selected key executives.

  • Family Business Planning: Uses life insurance as an excellent way to equalize the amount of assets distributed to your children.

  • Key Person Insurance: Allows you to use life insurance proceeds to cover many business expenses that arise upon the death of a key person.