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Universal Life
Universal Life Insurance is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. Premiums and values are based on projections of assumed interest rates, the cost of insurance and the insurance company’s expenses.
Client Profile:
- Business owners looking to maintain the value of their business
- Parents or grandparents who want to provide for their beneficiaries
Benefits of Universal Life:
- Flexibility- You can adjust the death benefit and premium payments to fit your clients' needs
- Tax-Deferred Account Growth- The policy’s Account Value earns interest at the company’s current interest rate; federal income tax deferred. The current interest rate is guaranteed to be at least 4% a year.
Term Life Insurance
Term Life insurance provides death protection for a stated time period, or term. This can be at a guaranteed rate or in some cases a guaranteed rate for a period of time and then a projected rate. Term periods can be for 1,5,10,15, 20 and even 30 years.
Client Profile:
- Clients that need to cover a larger temporary risk
- Clients that want a low-cost flexible product that can change as their needs change and grow
Benefits of Term Life Insurance
- Initial Affordability – Can be purchased in large amounts for a relatively small initial premium
- Meets Short Term Goals – Well suited for short-range goals such as life insurance coverage to pay off a loan, or providing extra life insurance protection during the child-raising years
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Whole Life Insurance
Whole Life is permanent insurance coverage that guarantees level premiums and the accumulation of cash values. Whole Life insurance is a good choice for long range-goals. There is participating whole life insurance usually issued by a mutual life insurance company where one participates as an owner of the company and there is non-participating whole life insurance issued by a stock life insurance company.
Client profile:
- Clients with long-range goals
- Clients who might need access to cash temporarily or for emergencies
Benefits of Whole Life
- Guaranteed Cash Values- A portion of the money paid into a whole life policy accumulates as guaranteed cash values. Therefore, if the policy is surrendered, these guaranteed cash values would be available to the client. Or, as long as the policy is in force, the client may borrow against them as a policy loan at the current policy loan interest rate.
- Premiums level and payable for life- Since premiums are level, the younger your client is when they purchase the policy, the less expensive the annual premiums will be.
- Dividends- Whole life insurance policies can earn dividends. Dividends result when the actual life insurance costs turn out to be less than assumed when setting the premiums.
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Long Term Care Insurance
Long Term Care insurance offers coverage that provides skilled nursing, intermediate care, or custodial care for a patient (generally over age 65) in a nursing facility or his or her residence following an injury.
Client Profile:
- Individuals under 60 who want to protect their savings from unexpected illness and are relatively in good health
Benefits of Long Term Care
- Preserve Wealth- Healthcare costs are rising and a chronic illness could wipe out a lifetime of financial planning for your client
- Tax Benefits- Benefits paid out to Long Term Care policies are tax free
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Disability Insurance
Disability Insurance provides a periodic benefit to an insured who has become unable to work. Disability insurance may also be called income replacement insurance, weekly indemnity, short-term or long-term income replacement insurance or short-term or long-term disability insurance.
Client Profile:
- Client that does not have an income replacement plan through their savings, employer or other means to cover their living expenses if they became disabled
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