LIFE INSURANCE

Life insurance is one option for building up more financial security to protect family, loved ones, and a business before and after an individual’s death. However, only 60% of Americans have life insurance. And, nearly one in five policyholders do not feel sufficiently insured.

Term Life Insurance

Term life insurance often provides the lowest cost of life insurance coverage which is why it is most popular with the general public. Premiums remain guaranteed for a level period of time for a stated death benefit. The policyholder often has options to either renew coverage or convert the policy to -permanent coverage. In addition, business owners in a partnership often have a Buy-Sell Agreement in place to provide protection for the surviving partner(s) in the event that one of the partners dies. Typically, a Buy-Sell Agreement is funded through a Term Life Insurance policy.

Enhanced Benefit Term

Term Life with Accelerated Benefits allows the policy owner to access all or part of their death benefit while living if they experience a qualifying terminal, chronic, or critical illness. Since these benefits are generally unrestricted, once qualified, the policy owner can use the benefit for any reason.

Return of Premium Term

A Return-of-Premium Rider provides for a refund of the premiums paid on a term life insurance policy if the policyholder doesn't die during the stated term. This effectively reduces the policyholder's net cost to zero. A policy with a return of premium provision is also referred to as Return-of-Premium life insurance.

Indexed Universal Life

Indexed universal life (IUL) insurance allows the owner to allocate cash value amounts to either a fixed account or an equity index account. Policies offer a variety of well-known indexes, such as the Nasdaq-100 or the S&P 500.¹ IUL insurance policies are more volatile than fixed ULs, but they are less risky than variable UL insurance policies, because no money is actually invested in equity positions.

IUL insurance policies offer tax-deferred cash accumulation for retirement while maintaining a death benefit. People who need permanent life insurance protection but wish to take advantage of possible cash accumulation via an equity index might use IULs as key person insurance for business owners, premium financing plans, or estate-planning vehicles.

Guaranteed Universal Life

Guaranteed Universal Life insurance takes the concept of universal life insurance but removes the market risk aspect of it. Your premiums stay the same regardless of how market indexes perform as your plan’s interest rates are baked into the premiums when you sign up for the policy. This type of life insurance has a “no-lapse” guarantee, meaning that as long as you pay your premiums, you’ll have coverage.

Variable Universal Life (VUL)

This a type of permanent life insurance policy with a savings component that allows for the investment of the cash value. Like standard universal life insurance, the premium is flexible. VUL insurance policies typically have both a maximum cap and minimum floor on the investment return associated with the savings component. VUL insurance has investment subaccounts that allow for the investment of the cash value. The function of the subaccounts is similar to a mutual fund. Exposure to market fluctuations can generate significant returns, but may also result in substantial losses.

Survivorship/Second to Die Life Insurance

Survivorship coverage is best applied when used for protecting the financial health of future generations. Usually, a survivorship life insurance policy is used to pay estate taxes, inheritance taxes, and to cover the financial needs of policyholders’ children or dependents. Benefits paid upon death of last of multiple insureds, generally resulting in lower premiums than UL policies. This is a possible solution for one member who is uninsurable.

Whole Life Insurance

Whole life insurance provides coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. These policies are also known as “permanent” or “traditional” life insurance. “Blue Chip” investment grade whole life plans can provide significant cash accumulation benefits and stable and secure cash growth. Numerous Dividend options such as Accumulations, Paid up Insurance & Extended Term Insurance are options incorporated into the contract.

High Early Cash Value Insurance (HECV)

Whole Life High Early Cash Value Life Insurance offers permanent life insurance protection with guaranteed cash values that are higher in early policy years than cash values of conventional whole life policies. This type of policy can help businesses that purchase life insurance reduce the impact on the company balance sheet during early policy years.

Single Premium Life Insurance

Single premium life insurance policies are specifically designed to be funded by one single premium payment. Attractive features and benefits of single premium life insurance include passing assets income tax free, and leveraging/transferring cash value in an existing plan and eliminating future premium payments. Almost any permanent life insurance plan policy can be funded with a single premium.

Final Expense Insurance

Final Expense is a “catch phrase” to describe low face permanent life plans; normally whole life or guaranteed universal life.  Many “Final Expense” plans can be acquired with minimal underwriting requirements, making them attractive to seniors as well as the writing agent.

Linked Benefit Insurance

This is life insurance coupled with long-term care combination products (often called hybrid or asset-based products) which fall into two main categories: linked-benefit products under and accelerated death-benefit riders. Benefits under 7702(b) are closer to true long-term care benefits and can be marketed as such, while accelerated death-benefit or chronic illness riders under 101(g) cannot be marketed as long-term care insurance, even though the benefits can be used for long-term care expenses.

Impaired Risk / Uninsurable

Prospective insured’s with significant/serious health issues may be considered an Impaired Risk, or wrongly deemed “Un-insurable”. Impaired risk underwriting involves “proactive” underwriting to find the life insurance carrier that specializes in covering that specific risk. Insurance companies we work with offer coverage for the following impairments: Type I & II Diabetics, Cancer Survivors, Heart Attack, Stroke, Organ Transplant and others.