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What is Life Insurance?
Life insurance helps your family maintain their standard of living if something should happen to you. Life insurance is a very important choice.
A life insurance policy
• can potentially provide your family with enough money to fulfill their obligations and pursue their dreams • protects against loss of income if you should die too soon• helps secure your family’s future even if you are no longer with them
A permanent life insurance policy with cash value may be able to
• help meet accumulation goals, if properly funded, through cash value policy loans and withdrawals, such as: – helping to fund your children’s education – supplementing your retirement income• assist with expenses if you become disabled through the use of living benefit riders.
Riders can be added to provide you with benefits you may use throughout your lifetime, called living benefit riders.2 These riders can accelerate the death benefit should you become ill or injured or potentially provide a guaranteed³ source of retirement income if you live too long. There is a choice of products and riders to help meet any lifestyle.
What If You Should Die Too Soon?
Your family may be forced into making uncomfortable sacrifices that would change their standard of living. Life insurance provides financial security to help your family avoid devastating life changes at your death. /p>
What If You Become Ill or Injured?
If you have no additional cost Accelerated Benefit Riders on your policy, you and your family would have financial protection during your lifetime in the event you experience a qualifying illness or injury. Life insurance can do more than pay a death benefit; it provides benefits for living.
What happens if you live too long?
We are living longer. A higher standard of living and medical advances have had a positive impact on mortality. But illnesses that are terminal, chronic or critical, or a critical injury, result in more people living longer with chronic or critical illnesses. Life insurance provides much needed protection for your family and heirs. It can also be a valuable resource if you live too long. An income rider is an optional rider that can be added to some life insurance policies. Life insurance can also help you meet your retirement goals and dreams by providing an income option on your policy with an insurance income rider.
You make payments called “premiums” to a life insurance company. The company agrees to pay a specified amount to whomever you designate to receive the money from your policy when you pass away.
Most people need life insurance
• those with dependent children • an older family member who depends on your wages • • people who need help meeting retirement goals • newlyweds • a young couple planning to start a family • a current homeowner • families with special needs children . Regardless of your life stage, life insurance could prove to be one of the most valuable financial decisions you ever make.
What Are Living Benefits?
Life insurance can do more than pay a death benefit. With powerful riders you may be able to accelerate the death benefit due to a qualifying illness or injury and potentially provide a guaranteed source of retirement income if you live too long. Accelerated Benefits Riders6 are optional, no additional cost riders that can allow you to access all or part of the death benefit while you are living if you experience a qualifying terminal, chronic, or critical illness or critical injury. You can use the benefit for any purpose, with the exception that ABR proceeds for chronic illness in the state of Massachusetts can only be used to pay for expenses incurred for Qualified Long-Term Care services.
You’re working hard to build your life. Find out how life insurance can provide you with security, protection and opportunities that can help you make what may be today’s dreams, tomorrow’s reality.
There are three basic types of life insurance you can choose from: • Term • Whole Life • Universal Life
• guaranteed coverage for a set period of time or until a specified age, as long as premiums are paid • usually renewable once the time period has expired, although it’s likely premiums will increase • provides a death benefit if you die within that defined period of time – it does not accumulate cash value • generally allows you to purchase a higher death benefit for your premium dollars; frequently the most affordable coverage
• called “permanent” insurance because it remains in force for your lifetime as long as you pay the scheduled premiums • premiums are designed to remain level over the life of the policy • you have the potential to build cash value that is tax-deferred and you may be able to access these funds on a tax-advantaged basis • when you pass away, your beneficiaries will receive the amount of the death benefit, minus any outstanding loans and loan interest that may be due on the policy
• another type of permanent life insurance that has flexibility built into it • the flexibility allows you to adjust the face amount of your policy, and the premiums you pay4 • build cash value without paying current income taxes on the increases and you can potentially access the funds using tax-free loans and withdrawals5 • flexibility allows you to stop paying premiums if there is enough accumulated value in your policy to cover the cost of insurance each month. You can then pay additional premiums to build back up accumulated cash value • you may be able to increase or decrease your death benefit depending on your life insurance needs. An increase may require additional underwriting Two of the most popular types of Universal Life policies are Fixed Universal Life and Indexed Universal Life. One of the main differences between them is how the policy’s interest is credited. Both offer you varying degrees of guarantees and returns, based on your appetite for risk. • Fixed Universal Life – interest rate is declared by the company • Indexed Universal Life – interest is based on the changes in value of a major market index
LIVING BENEFITS
Qualifying Events.
Terminal Illness
Generally, if you have been diagnosed with a terminal illness that will result in death within 24 months (12 months in some states) of certification of the illness by a physician
Chronic Illness
A doctor has certified, within the past 12 months, that you are unable to perform two out of six “activities of daily living” for a period of at least 90 consecutive days without assistance, or that you are generally cognitively impaired.
Activities of Daily Living: • Bathing • Continence • Dressing • Eating • Toileting • Transferring
Critical Illness
• ALS (Lou Gehrig’s disease) • Aorta Graft Surgery • Aplastic Anemia • Blindness • Cancer • Cystic Fibrosis • End Stage Renal Failure • Heart Attack • Heart Valve Replacement • Major Organ Transplant • Motor Neuron Disease • Stroke Sudden Cardiac Arrest
Critical Injury
• Coma • Paralysis • Severe Burns • Traumatic Brain Injury
Living Benefits could be used for, but not limited to:
•Household expenses • Home modifications • Nursing home care • Adult day care
• Regular bills • Quality of life expenses • Lifelong dream vacation