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| LIFE INSURANCE |
Life insurance can benefit your family in different ways. Not only does life insurance protect your family when you die, but it also can help build assets for future needs.
Term Life Insurance:
Offers protection for a specified period of time:
• The policyholder only pays for the protection against death
• The death benefit is only paid if the insured dies during the specified period
• Does not build cash value
• Can cost less than permanent insurance
Whole Life Insurance:
• You pay a guaranteed fixed premium for the life of the contract
• Premiums are invested in the insurance company’s general account
• Regardless of the general account’s performance, you’re guaranteed to receive the policy’s cash value and your beneficiary is guaranteed to receive a death benefit
• Used in funding buy-sell agreements
Universal Life Insurance:
• Premium payments are flexible
• Your cash value earns interest at a rate that is set periodically by the insurance company and is generally guaranteed not to drop below a certain level
• Choose one of two death benefits:
1. A level benefit equal to the policy’s original face amount
2. An increasing benefit equal to the original face amount plus any existing cash value
• Tax-free withdrawals or loans
• Used in funding buy-sell agreements
Disability Insurance:
Disability Insurance provides a monthly income if you are unable to work because of accident or illness. Insure against loss of income.
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