Term Life Insurance, as the name suggests provides life insurance only for a limited period of time. Other types of policies such as whole life, universal life and variable life are considered a permanent insurance plan that is designed to provide protection for the entire life of the insured person.

Term insurance provides protection and does not have the cash value features that are found in most of the permanent life insurance policies. Term insurance plans come in different levels such as: annual renewable, 5,10,15,20 and 30-year terms.

These types of policies are best used in situations such as protecting a mortgage or securing of key employee.

Universal Life Insurance differs from traditional whole life policies by creating tremendous flexibility to the insured. This flexibility allows the policy owner to modify the face amount or premium in response to changing needs and circumstances.

The major benefits are:

• The policyholder has a tool which is flexible to accommodate ever changing business, financial and family circumstances.
• The policyholder can easily combine the need for life insurance with long-term investment goals such as retirement and college education.
• “cash value accumulation” that is built on a tax deferred basis
• Cash within the policy may be accessed through withdrawals or partial surrenders without penalty.
• Withdrawals from the “cash value” can be federal income tax free if structured properly.

Whole Life Insurance is better known as “ordinary life”, which is designed to stay in force throughout one’s lifetime. It is a policy that is well designed for paying such costs as estate settlements, Federal estate taxes and probate or administration fees.

Tax advantages to whole life are:

• The owner can borrow against the cash value at a relatively low interest rate without being taxed.
•  By transferring ownership of the policy to another, the proceeds can be exempt from Federal estate taxes.

Purpose for Life Insurance:
Life insurance is a unique asset because of its high yield potential and its tax-favorable benefits, which can be used to solve some of life’s unexpected financial problems.

Life Insurance Purposes:

• create an estate
• pay death taxes and estate settlement costs
• create a retirement fund
• pay off the home mortgage
• college fund for children and grandchildren
• equalize inheritances
• replace charitable gift
• fund a business transfer
• protect a business from the loss of a key employee
• pay off loans         

Tax-deferred Annuities allow for a higher effective investment return by accumulating income on a tax-deferred basis. Income tax on the investment growth is delayed until the money is withdrawn from the contract.

Tax-deferred Annuities Provide:

• competitive interest rates
• tax-deferred accumulation
• lifetime income guarantee available
• guarantee of principal interest by insurer
• withdrawals available on demand, subject to specified surrender charges

An annuity is a contract between an insurance company and individual investor. These type of contracts can either be set up by a single investment or with a series of investments.

Indexed Annuities provide the investor with a unique opportunity to have the growth of their investment directly linked to the average value of the S&P 500 Index. Without being invested in the market, the S&P 500 is noted for being the benchmark to the United States Economy.

Major Advantages:

• earning link to S&P 500 Index
• guaranteed minimum value
• can never lose initial investment or credited earnings
• tax advantages as a normal annuity
• have all the upswing and never the down.

Growth & Security is what the Index Annuity offers for your future!