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|   Life Insurance Education
(Click "ING For Life")   Simply stated, at the end of your 15-20-30 year term- get all your premium returned!
During the term, cash value grows, usually beginning after the 5 year ultimately equaling the total premium you paid in at the end of the 15-20-30 term. Companies which offer these products provide options, some exclusive to specific companies, that allow you to have flexibility during and after the term. These options include (but not limited to):
- Paid-up Insurance - using cash value to get paid-up permanent policy,
- Guaranteed Conversion - to a permanent policy,
- Premium Guarantee
- Non-forfeiture Options - options when premium is not paid
- Loans on the Cash Value
In today's environment, when you are looking at the most cost effective means to getting the coverage you want, do not overlook a Return of Premium Option. If the cost for the total benefit you are looking for is too high, ask us about a ROP/Term blend designed to reduce your out of pocket expense. Term InsuranceWe have all heard of this one, buy term insurance for your Life Insurance needs. Term Insurance is the least expensive kind of Life Insurance available to you. Do not mix up least expensive with the most cost effective Life Insurance however. Term Insurance is just paying for the death benefit for a period of time, generally up to 30 years. When looking at these be sure you get a guaranteed premium as there are products that only provide a guarantee equaling 1/3 of the term.
Permanent Life Insurance
This type of Life Insurance is designed to provide coverage for your entire Life. Depending on who you talk to, and their philosophy, you will hear arguments why this type of insurance is good or bad for you. The bottom line is, "what do you want to have happen while you are alive and upon death?" The more premium you pay on a giving policy, more benefits are available to you and your estate.
There are two commonly known types of permanent Life Insurance:
- Whole Life
- Universal Life
Whole Life (WL) Insurance is the oldest and most expensive kind of permanent Life Insurance available. We refer to this insurance as "fixed", meaning there is not a lot of flexibility available. What you are paying for is a guaranteed death benefit & a guaranteed cash value at a given age. There is a place for this kind of policy again, depending on what you want to have happen.
Universal Life (UL) Insurance was created back in the 70's with the investor in mind. UL's provide flexible options and opportunity for higher interest rates, or return on excess monies. Universal Life policies are generally 20-40% less expensive than WL policy's while providing these benefits (depending on how these are funded):
- Deductable
- Disability Protection
- Liquidity
 - Estate Tax-Free
- Collateral
- Unlimited Investment Options
- Unlimited Contributions
- Judgment Proof
- Guarantees
- Competitive Rate of Return
- Tax-Free
- Tax-Deferred
While WL policies provide some of these, due to the flexibility UL's offer, there is a place for your estate to have one in place.
Contact us today to get more information!
Life Insurance Questions/Proposal Request
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