Permanent Life Insurance



Permanent Life Insurance • Competitive Low Premiums • Low Guaranteed Level Term Premiums for 10, 15, 20 and up to 30 years • Unlimited Amounts Available • Available to Members, Spouses and Children *The Need for Life Insurance* Life insurance may be necessary at all stages of life, depending upon your family, business and estate situation. Usually, the need for Life Insurance increases as your family and practice grow. As your wealth becomes substantial, life insurance is required to offset the significant impact of estate taxes that can consume up to 50% of assets at death. Building A Life Insurance Foundation Specialists often combine term life with permanent life to meet coverage needs. Term life provides initial, affordable protection. Permanent life is added later to start a base of lifetime coverage. using this strategy, by retirement, Permanent life is maximized to cover estate taxes and final costs. Life Insurance may be used to help: • Provide living expenses for a young family • Payoff mortgage and other loans • Provide for children's educational needs • Collateralize business loans • Fund buyout agreements between partners • Pay Estate Taxes Permanent Life Insurance Permanent life insurance can provide lifelong protection. As long as you pay the necessary premiums to keep the policy in force, the death benefit will be paid. These policies are designed and priced for you to keep over a long period of time. A feature of permanent life insurance known as "cash value, "cash surrender value," or "net surrender value" is the amount available when you surrender a policy before its maturity. This value is different from the policy face amount, which is money that is paid at death, or at policy maturity. • You can cancel* or "surrender" the policy, in part or total, and receive the cash value as a lump sum. • Provided sufficient value has accumulated, your cash value can be used to pay the premiums for your current insurance protection, or for a lesser amount of insurance. • You may be able to borrow from the insurance company, using the cash value as collateral. Some Common Permanent Life Policies Whole Life Whole life is one of the most common types of permanent insurance. The premiums generally remain level over the life of the policy and must be paid regularly in the amount indicated in the policy. Generally, a whole life policy is a "participating" policy, meaning you are entitled to a share of any annual distribution of the company's surplus. Your share is known as your "dividend". Dividends are not guaranteed. Universal Life Universal life allows you, after your initial payment, to pay premiums at any time, in any amount, subject to certain minimums and maximums. Premiums can fluctuate or be as regular as you need. New premiums earn interest at current rates. Unlike whole life, it does not have the potential to pay dividends. At the same time each month, deductions are made from the fund value to pay for insurance protection and policy expenses. As long as the fund value is sufficient to meet each deduction as it comes due, the policy remains in force. You also can reduce or increase the amount of death benefit more easily than under a traditional whole life policy. By raising or lowering the amount of coverage, a single policy can be adjusted to meet protection needs that change over your lifetime. No increase in premium is necessary to raise coverage, although the cost of insurance will increase to reflect the new amount. (Increases may require evidence of insurability, while decreases are subject to policy minimums.) You can choose a level or an increasing death benefit option. The total death benefit under either option is either the face amount plus the fund value. Fund value accumulations are tax-deferred, as with any permanent life insurance product. We offer a full spectrum of Life Insurance products to meet your needs.* (back to top) *Contact Us* or call 800-345-6040 for more info. * If you surrender your policy in the early years, there may be little or no cash value and there may be surrender charges assessed. In addition, tax consequences may occur if you cancel a policy. You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit. * Dividends and guarantees are not guaranteed and are based on the claims-paying ability of the insurance company. • Unpaid policy loans reduces the policy's cash value and death benefit and may result in a tax liability.