Life insurance products allow individuals to purchase a single financial instrument that provides for both life insurance and long-term accumulation goals.
Whole Life Insurance
Whole Life insurance is considered to be “permanent insurance” and is designed to provide protection for the entire life of the insured. Generally, annual premiums (payments) remain the same throughout the life of the insured. This type of policy is well-suited to needs that do not diminish over time.
Term Life Insurance
Term Life insurance provides life insurance only for a limited period of time. At the end of the period covered by the policy, there is no refund of the premiums paid (much like an automobile insurance policy if no accident occurs). Term life insurance is most useful when an insured is relatively young and the need is for temporary or short-term coverage.
Variable Universal Life Insurance
Variable Universal Life insurance allows the owner of the policy to, within certain guidelines, modify the policy death benefit and change the amount and timing of premium payments to meet varying circumstances. The most prominent policy feature is the policyholder’s ability to direct where net premiums will be invested. This type of insurance is suitable for long-term obligations, estate growth, and death tax liquidity.
Annuities
An annuity is a contract between an insurance company and an individual buyer that offers a tax-deferred method of accumulating retirement funds. The contract can be purchased either with a single payment or with a series of payments during the accumulation period. Through our resource partners, which include many of the nation’s leading insurance providers.
Fixed Annuities
With a Fixed Annuity, the issuer guarantees both the principal and interest against loss.
Variable Annuities
With a Variable Annuity, the cash value of the annuity will fluctuate up and down with changes in the performance of the underlying investment portfolio. Therefore, the amount of money available at the time of withdrawal could be more or less than the amount of the original investment.
Long-Term Care Insurance
“Long-term care” describes a variety of health, personal care, and social needs services of persons who are chronically ill or infirm. The majority of these costs are not covered by private insurance, Medicare, or Medicaid. Individuals use long-term care insurance to protect their estates from being depleted by the need for long-term care.
Most long-term care policies pay a fixed dollar amount for each day of eligibility for the benefit, have a provision for inflation, and are guaranteed renewable. However, policies vary greatly. Since the potential need for long-term care is a genuine risk, the prudent estate owner will examine long-term care insurance to see if it has a proper place in his or her overall financial plan.