And Many More....
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Life Insurance
Although there are many uses for life insurance, its traditional
function remains the same. Life insurance protects individuals
during the loss of a loved one and helps provide a sense of
security for their future. That is why having a thorough
understanding of life insurance is important in providing your
customer and their families with optimum protection and peace of
mind.
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Types of Life Insurance
Term Life Insurance
Provides coverage for a specified period of time, usually 10,
15, 20, 25, or 30 years. Once the period for the policy runs
out, the life insurance coverage expires. Some policies can be
automatically renewed at the end of the coverage period, and
some can be converted to permanent insurance without the need
for a medical exam.
Universal Life
Insurance
Offers flexible premium options and a death benefit. Allows
changes to the death benefit, the amount of premium, and payment
frequency. Most policies pay a minimum guaranteed interest rate.
Variable Life
Contains death benefits and cash values that vary with the
performance of underlying subaccounts. The death benefit and
cash value are not guaranteed and can fluctuate according to the
current market. Most policies offer a guaranteed minimum death
benefit for protection against poor markets.
Variable Universal
Life
Combines the flexible premium and death benefit options of
universal life with the investment flexibility and risk of
variable life. Most policies offer a guaranteed minimum death
benefit.
Whole Life Insurance
Provides a fixed guaranteed rate and builds guaranteed cash
values. There are two variations of traditional whole life:
Joint Whole Life (Also known as first-to-die)
Insures two lives and pays the death benefit to the surviving
insured person when the first one dies.
Survivorship Life Insurance (Also known as
second-to-die)
Insures two people and pays a death benefit only when the second
person has died. It is designed for married couples who want to
provide funds to pay estate taxes that may be due after their
deaths.
Benefits of Life
Insurance
In addition to providing security and peace of mind, life
insurance has many added benefits:
Provides income for surviving family members
Offers a tax-free death benefit to beneficiaries
Pays debts
Can pay federal estate and state death taxes
Avoids the probate process
Tax-deferred growth
Loans
Flexible death benefit options
Other Uses for Life
Insurance
Fund a Buy-Sell Agreement
Retirement and Estate Planning Needs
College Planning
Vehicle for Charitable Gifts
Fund a Split Dollar Arrangement
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