Life insurance play a central role in family financial planning. Internal Revenue Code has favorable rules for life insurance. Life insurance death benefits are not taxable income for any beneficiary.
Term insurance is temporary life insurance, the use of term insurance should be related to needs that are also temporary. The basic guideline is to cover temporary needs with term life insurance and permanent needs with permanent life insurance.
Permanent life insurance combines insurance protection and savings in a permanent contract that remains in effect for an insured's whole life. There are mainly two type of permanent life insurance: universal life insurance and whole life insurance.
Universal life is a flexible-premium, adjustable-benefit life insurance contract which accumulates a cash value. Universal life insurance provides the flexibility to fit the changing needs of the insured. The concept of universal life insurance was developed from the idea that the two components of a whole life policy's death benefit - the pure protection and the cash value-could be formally separated, giving the policyowner greater control over the funding of the cash value. Universal life insurance is a flexible premium policy that has an investment feature and separates the protection, savings, and expense components.Universal life insurance allows adjustments in the benefit and premium amounts, and also offers competitive interest rates on cash value. The distinctive feature of this contract is the variable rate of interest that is provided.
Whole life insurance provides level premiums and lifetime protection. Two basic types of whole life insurance are straight life and limited-payment life insurance. Straight life insurance provides lifetime protection to age 120 with level premiums paid periodically until the insured dies or reaches age 120. Limited-payment life insurance requires level premium payments for only a specified number of years, although the protection is for a lifetime. All whole life policies have cash values.
We have access to all of the major life insurance carriers. Please contact us to find the right policy for you and your family.