Insurance Products:

Equity Indexed Universal Life:

What is Equity Indexed Universal Life Insurance?

Equity indexed life insurance, like all permanent life insurance, currently offers three distinct tax advantages that in combination are not found in any other insurance or cash accumulation product.

- Tax deferred accumulation of cash values

- Potential for tax managed income for retirement or college planning

- Tax free proceeds transferable at death

Equity indexed universal life insurance offers a unique combination of affordable life insurance with the ability to accumulate cash values that grow with the upward movement of a stock index without the normal downside risk associated with the equities market. Combine the benefits of upside cash value growth potential with the tax deferred benefits associated with life insurance and a minimum guaranteed interest rate and you have an optimum vehicle for accumulating cash.

Whether you objective is to obtain a flexible low cost life insurance policy, to maximize retirement income in the most tax efficient way or to provide liquidity in estate planning, equity indexed life insurance can help you reach your family and business objectives.

Term Insurance

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.
Term life insurance provides coverage for a limited period of time, the relevant term. After that period, the insured can drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

ROP Term Insurance

Another form of insurance currently being marketed is called Term Life Insurance with Return of Premium (ROP). Though it is called Term Life insurance this type of policy has more in common with forms of Permanent life insurance than true Term with a Pure Death benefit.

These policies offer a partial or complete return of premiums in a lump sum if the insured is still alive at the end of the guaranteed level period, usually 15, 20 or 30 years. If the insured dies during the term, the death benefit is paid as with traditional term life insurance without a return of premium. The premiums are higher for ROP products, because the policy owner receives the premiums paid over the term back. How this works is that the extra premiums are set aside in a savings vehicle designed to accumulate to an amount of money equal to the premium paid in at the end of the term. The amount is then returned as a refund of premium. This function is virtually identical to the cash accumulation feature on most permanent life insurance products, and provides a less substantial return than other investment vehicles.

Like Permanent products some ROP products also allow loans on a percentage of premiums paid up to that point after a designated number of years have passed. ROP products are more attractive to healthier people who believe they will live past the term and receive the large sum ROP to apply toward future expenses, such as college, wedding or house down payment expenses.

Universal Life Insurance:

Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, which is drawn from the cash value if no premium payment is made that month. The interest credited to the account is determined by the insurer; often it is pegged to a financial index.