Life Insurance|
General Information When developing a financial plan, the first step is to establish your life insurance protection. Life insurance can replace lost income in case of premature death, pay the mortgage, provide for college education, and pay off debt. Every individual needs to evaluate his own situation. However, a basic rule of thumb is to have at least five times your annual income. |
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Term Insurance Term insurance pays a death benefit if you die within a specific period of time. Typically the term period can be from 5 to 30 years. When it is time to renew, the premium rates can increase quite dramatically. Because term insurance has a lower initial rate, it allows you to purchase more coverage at a younger age when more protection is usually needed. It is also very effectively used to cover mortgages and/or car loans. Some term policies now offer a Return of Premium, (ROP term). This guarantees that all premium paid out during the term period is returned to the policy owner if there was no death. EXAMPLE RATES 10-Year Term Life - Monthly Premium Age $500,000 $1,000,000 $2,000,000 35 $13 $19 $31 40 $16 $26 $45 45 $24 $42 $77 50 $35 $64 $120 55 $54 $99 $192 |
| Permanent Insurance Permanent insurance is usually whole life or a form of univeral life insurance. Permanent insurance provides protection for your entire life. Permanent insurance is considerably more costly than term insurance. It does, however, provide a cash value. In some polices, called Indexed Universal Life policies, the cash value can be indexed to the stock market. This can provide even a higher return than the more traditional products. There can be tax advantages in these products as well. With universal life, the premiums can be increased or decreased within certain guidelines. Also the face amount (death benefit) can be reduced or increased relatively easily. Of course, to increase your death benefit, you would have to provide the insurance company with evidence of continued good health |
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Some of the Companies Represented American Equity Investment Life Insurance Company American General Life Insurance Company American Investors Life Insurance Company American National Insurance Company Americo Financial Life and Annuity Insurance Co. Aviva Life Insurance Co. AXA Equitable Life Insurance Co. Banner Life Insurance Co. Chase Life Insurance Co. Chesapeake Life Insurance Co. Continental Assurance Co. Fidelity Life Insurance Co. First Penn-Pacific Life Insurance Co. Genworth Life Insurance Co. Great American Life Insurance Co. Indianapolis Life Insurance Co. ING Life Insurance Co. Investors Insurance Corporation Lincoln National Life Insurance Co. Ohio National Life Insurance Co. Reassure America Life Insurance Co. ReliaStar Life Insurance Co. Sagicor Life Insurance Co. Transamerica Life Insurance and Annuity Co. West Coast Life Insurance Co. William Penn Life Insurance Co.
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