Life Insurance

Term Insurance

Term life insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" of years. If the insured dies during the time period specified and the policy is active, or "in force," a death benefit will be paid.

Term insurance is initially much less expensive when compared to permanent life insurance, such as whole life and universal life. This because it's not designed to last through old age, which is when life insurance premiums are the most expensive. And unlike most types of permanent insurance, term insurance has no cash value.

Both will pay an income tax-free benefit to your beneficiaries if you pass away. 

Permanent Insurance (Whole Life or Index Universal Life) 

Permanent life insurance policies provide lifelong coverage -- even if you live to 100, the policy will pay a benefit as long as premiums are paid.1 Permanent policies have another important feature: they build cash value. Premium dollars can contribute to a policy’s cash account while  growing – tax-deferred – and can be used while you're still alive. Over time the cash account can grow into a sizable asset that can be borrowed against with tax advantages, used to pay premiums, or even surrendered for cash to help fund your retirement. 

Life Insurance can be used as part of a retirement plan with the living benefits: 

• Cash available via loans
• Retirement Income
• Loan Collateral
• Cash Asset
• Creditor Protection
• Long Term Care Riders 

IUL - Index Universal Life 

Indexed universal life (IUL) insurance is permanent, which means it lasts your entire life and builds cash value. An IUL policy allows for some cash value growth through an equity index account, unlike other universal policies that only grow cash value through non-equity earned rates. Like with all universal life policies, once you've built up enough cash value, you can use it to lower or potentially fully pay for your premium without lowering your death benefit. 

Benefits of the IUL:

• Higher Return Potential with link to the Market
• Greater Flexibility, no Qualified Plan rules  
• Principal protection and ability to Lock in Gains 
• Tax-Free Income thru the Cash Value 
• No Contribution Limits 
• No Social Security Impact
• Death Benefit tax free to beneficiaries 

Long Term Care - some permanent life insurance policies have riders that can provide long term care if needed. 

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Retirement 

Life Insurance should be part of your Retirement Plan. 

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