When deciding on insurance, it is important to determine how much is needed, how many years it is to continue, the cost each year to continue the program before determining what type of program is most appropriate. Life insurance cash values are available to be allocated to either interest rate based accounts (universal life, whole life or index life) or investment based (variable) accounts.
Term Life Insurance
Provides benefit at death only on a level or decreasing bases, for a specific length of time, where premiums either increase annually or remain level for a set number of years. If the death benefit is desired at the end of the designated premium period new health and other qualifications are required and the premiums are adjusted accordingly.
Whole Life Insurance
Provides a cash accumulation account as well as a death benefit with fixed level premiums that are payable for life. The cash account is part of the general assets of the insurance company that is invested primarily in highly rated government and corporate bonds. The cash accumulation account can be accessed by canceling the policy, by loan or can be used to pay the premiums of the policy.
Index Life Insurance
Provides a cash accumulation account as well as a death benefit with fixed level premiums that are payable for life, similar to whole life policies. The difference is the return credited to the cash account is determined by market indexes.
Universal Life Insurance
Provides a cash account as well as a death benefit that provides the policy owner the option to pay the a portion of the premium that will only cover the cost of the death benefit or an additional amount to increase the cash accumulation account. These offer similar premium option of both the whole life and index life insurance policies.
*Variable Life Insurance
Provides a cash accumulation account as well as a death benefit with level premiums that are payable for life, similar to whole life and universal life policies. The cash account is considered separate from the insurance company’s general account. The policy owner is given the option where the cash value is to be invested within the subaccount portfolio.
First to Die Life Insurance
First to Die life insurance can be either term, whole life, index life or universal life and is mostly use by joint income earning spouses and in business planning situations.
Second to Die Life Insurance
Second to Die Life insurance can be either term, whole life, index life, universal life or variable life and is mostly used in estate planning situations as well as business planning.
*Deferred Annuities
Deferred Annuities are offered through life insurance companies and are designed to provide and individual with tax deferred growth on their deposit into these accounts. Deferred Annuities can be invested in a Fixed Interest crediting account, Index crediting account or Variable (investment) account. There are many variations and options available on all types of deferred annuities.
Immediate Annuities
Immediate Annuities are offered through life insurance companies and are designed to provide an income for a set period of time or life through the payment of principal and interest. These programs are offered on a fixed or a variable bases.
Disability Income Insurance
When purchased as a personal individual income replacement program there are many options to consider. Some of these option provide for residual (partial) benefit if not totally disabled, or provide benefits if unable to perform the duties of your regular occupation. There are also option that increase the benefit yearly, provide a cost of living increase when disabled and many more. Not all policies and companies are alike.
Long Term Care Insurance
Long Term Care insurance policies provide benefits that are used to pay the cost for elder care. These policies may have provisions to pay for adult daycare, home care, assistant care facility, nursing home and so on. These programs provide a specific daily benefit for a specified amount of time after an elimination period. These policies are offered through specialized insurance companies.
Medicare
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). Compare plans and enroll today
Individual & Family Dental Insurance
Dental insurance can help cover the cost of exams and procedures, while promoting more frequent visits, ultimately keeping you healthier. IHC Dental offers three great plans for individuals and families.
*Variable products are subject to investment risk, including possible loss of principal. Before investing, carefully consider the investment objectives, risks, limitations, charges and expenses of the product and its underlying investment options. This information can be found in the product and investment option prospectuses. Prospectuses can be obtained by calling my office. Please read carefully before investing.
