Life Insurance

In general, many people understand that having life insurance in any form is a necessity. The policy of life insurance is an excellent method of providing protection for your family members in the event of your death. 

While many people understand that it is important to have life insurance, they may not understand that there are many different types of policies available in the world today.

One type of insurance policy is called Whole Life Insurance.  This type of life insurance is effective, provided you continue to make continuous payments upon the premium.  This is a very popular type of life insurance because it allows you to build a cash value on the policy and is on a basis that is tax-deferred.  The way this works is that a portion of the premium you are paying is put into an account of savings that the policy invests into.  All interest that is earned upon the policy is put into the savings and helps to build the cash value.  Once the cash value reaches a higher level, you could be allowed to borrow against the cash value, in case of emergency needs.

Another attractive benefit of having a Whole Life Insurance policy is that your premium will always remain the same.  At no time will the amount change at all, therefore, as long as you continue to pay the premium, the face value of your policy will remain at the same level for the entire time.  If you choose to take a loan out on the cash value you have earned, the only difference you will have to pay is paying back the loan, plus the interest.  A downside to this policy is that in general, you have no control whatsoever over how the company chooses to invest the dollars you pay on your premium.

Another type of life insurance is the Term Life Insurance policy.  This policy is selected for a specified amount of time.  If you should happen to pass away during the term of this specified time, then your family would then receive payment in the form of a lump sum as the contract specifies.  Typically, the premium for this type of policy is far cheaper than other types and, it does not allow you to build any type of cash value.  With this type of life insurance, your premium can change or increase on a yearly basis and it generally does increase each year or every 5, 10, 15,20, 25, or 30 years, depending on the term of the contract.  It is the cheapest type of insurance normally that is available; however, it may not provide your family with complete protection if you outlive the contract period.

Last Survivor Life Insurance is another type of life insurance. Last Survivor Adjustable life insures two persons and pays a death benefit from the basic policy upon the second death to occur.  It is a “universal life” policy with flexible premiums, and adjustable death benefits.

One of the principal uses for Last Survivor Adjustable Life is the estate planning market for high net-worth individual who elect to use the “unlimited marital deduction” provision of the federal estate tax code.  This provision of the Economic Recovery Tax Act of 1981 allows a married person to pass unlimited amounts of assets to a surviving spouse without incurring either estate or gift tax on the transfer.

However, at the surviving spouse’s death, the bulk of his or her estate may be subject to federal estate taxation, as well as debts, administration fees, probate costs, and in most cases, even state inheritance taxes.  The death benefit payable at this second death can replace other assets used to pay taxes and administration costs, or these proceeds can be made available to the executor to pay taxes and other charges directly.

We offer life insurance with the lowest premium from a variety of solid carriers who have demonstrated their financial strength throughout the years. Please let us know if we can be of any service to you.