Coporate Profiles

Types of life insurance coverage:

The following are different types of life insurance policies and their characteristics. Keep in mind that the intent of life insurance is to provide for the life of your heirs and/or beneficiaries for such things as payment of debts and to provide family income. In addition, the policy can provide supplemental income for retirement.

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TERM LIFE

1. Low initial premium.
2. May be renewable and convertible to whole life insurance.
3. Protection for a specified period.
4. Premium increases with each new term.
5. Typically no cash value.
6. 30-40 maximum term.
7. Only available up to around age 70.
TRADITIONAL WHOLE LIFE

1. Protection to age 100.
2. Fixed premium.
3. Fixed cash value.
4. Fixed cash value.
5. You can defer taxes on the earnings generated by the policy until you withdraw cash, take out a loan policy, or receive annual interest earnings on dividends.
UNIVERSAL LIFE

1. Flexible premium.
2. Flexible death benefit.
3. Cash value reflects premiums paid and current interest after deducting the cost of death benefits and other expense charges.
4. You can defer taxes on the earnings generated by the policy until you withdraw cash or take out a policy loan.

EXCESS INTEREST WHOLE LIFE

1. Permanent protection.
2. Fixed premium.
3. Fixed death benefit.
4. Cash value growth depends on current interest credited to the cash value account. If you have a fund and your insurance company credits excess interest to the fund it will grow faster.
5. You can defer earnings generated by the policy until you withdraw cash, take out a loan policy, or receive annual interest earnings.

Death n Taxes
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VARIABLE LIFE

1. Long-term protection.
2. Fixed or flexible premiums.
3. Policyholders sometimes control the investment of their cash values in stock, bond, money market or other accounts and bear all the investment risk.
4. Death benefits and cash values vary in relation to the performance of funds in a separate account.
5. You can defer taxes on the earnings generated by the policy until you withdraw cash or take out a policy loan.

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