Life Solutions
While the life insurance industry is flooded with new, innovative products, we will make sure to relay everything to you in plain English, non-confusing industry jargon. Product selection is very easy once we determine exactly what your needs are.
Below is a quick overview of the types of products available to you. Each product can be structured to accomplish various goals.
Term Insurance
Term insurance is used for temporary protection—for example, while you pay off a mortgage, during the term of a personal or business loan, throughout your higher-income-earning years, or until your children are truly on their own. You can choose from 10-, 15-, 20-, 25-, or 30-year term periods. While term insurance is cheaper than permanent coverage (universal or whole life), it is only good for a specific term. After that, it may be renewable, but at higher rates. You do have the option to convert certain term products to a permanent plan if conversions are allowed at that time.
Universal Life
Universal Life (UL) offers more flexibility than whole life insurance with flexible face (an increase in face amounts is subject to insurability) and premium amounts depending on the overall need you may have at that time. UL policies have many different features and advantages that term insurance cannot offer, such as no-lapse guarantees, lifetime guarantees, and access to cash through loans or withdrawals on a tax-favored basis. Premium payments are credited to a cash value account, where the money earns tax-deferred interest at a rate set by the company, which may be higher than the minimum rate guaranteed in the policy.
Equity Indexed Universal Life
Equity Indexed Universal Life (EIUL) has all of the features of universal life, but the premium paid over the cost of insurance is placed into different accounts that are tied to either one or a variety of different indices, such as the S&P, Dow, Nasdaq, Dow Jones Euro Stoxx 50, or the Hang Seng, for a global index.
Whole Life
Whole Life provides a guaranteed death benefit along with guaranteed cash value. The premiums remain level, and part of each premium payment is applied to the policy’s cash value account, which grows on a tax-deferred basis. Whole life policies may be entitled to policy dividends, which are declared from the insurer’s surplus. Policy dividends are not guaranteed.