What is life insurance?
In its simplest form, life insurance is a financial product that pays a sum of money to a named beneficiary at the death of an insured individual. Insurance policies called “permanent” or “cash value” insurance develop cash values that have the potential to grow tax deferred, providing policy owners with a benefit they can use during their lifetime. Insurance proceeds are generally paid free from income taxes and they are not subject to probate. Thus, life insurance proceeds pass quickly and directly to the beneficiary.
The low initial premiums make term insurance a practical alternative to permanent coverage, however, term premiums will eventually increase. At some point, if you continue to carry your term coverage, the annual premiums will likely exceed the level premiums that could have been had with a permanent policy and you will not have had the benefit of building any cash values. Term insurance often offers the opportunity to convert to permanent life insurance policy prior to the end of the term without having to provide evidence of insurability. Term insurance may be appropriate for young families with low cash flow and high protection needs, for consumers whose protection needs are temporary, or to supplement permanent life insurance.
What are “Living Benefits?”
Life insurance, you don’t have to die to use. Most people know life insurance can help provide financial security and continuity during one of life’s most difficult times: the death of a loved one. What few people know is that life insurance can also help during another one of life’s most difficult times: a chronic, critical or terminal illness. This help comes in the form of optional riders called Accelerated Death Benefit Riders, also generically known as Living Benefits, which can be added at no additional cost.*
Why an annuity for retirement?
An annuity is a financial product that allows a contract holder to accumulate money on a tax-deferred basis and receive a series of payments at regular intervals. People purchase annuities to obtain an income or to supplement retirement income they will receive from Social Security, pension benefits, investments and other sources. There are many different types of annuity contracts. Immediate annuity contracts provide income payments that normally begin within a year after the premium is paid. Deferred annuity contracts provide income payments that begin later, often after many years. Individual contracts cover only one person, while group contracts cover a specific group of people.
How the critical illness FREE living benefit rider works:
Jerome, a husband and father of two, suffers a severe heart attack at the age of 54. He uses his critical illness rider. He is able to use this money to cover his medical expenses, and pay off his family’s mortgage.
How families use accumulate value for education:
Juan and Maria are parents of Julia, a freshmen entering college. Through policy loans and withdrawals, they are able to access their policy’s accumulated value to offset her tuition.
How the chronic illness Living Benefit rider is used:
Anna Bella, at age 79, becomes chronically ill and enters a nursing home. She decides to use 2% of her death benefit each month, available to her through the chronic illness rider to help pay for her nursing home stay and other medical expenses.
When should I start planning for retirement?
The good news is: Nearly 79 million boomers have earned record levels of income, generated great wealth, and spurred economic growth.
The bad news is: They have also spent at high levels, failed to save, and have accumulated unprecedented levels of debt.
About 2/3 of early baby boomer households (54-63) are unprepared for retirement – LIMRA International 2008.
Start planning for your retirement TODAY!