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Life
Insurance - An insurance and related services tool
Life insurance is a vital tool that addresses two of the most serious risks you face: the risk of dying too soon and the risk of
living too long. In either case, life insurance can provide
the right amount of money at just the right time, whether
it's furnishing the cash and income your family will need
after your death or supplementing your own retirement income
while you are still living.
Tax-free
death benefit
No
other product will provide such a large, instant cash windfall,
income-tax free*, at the very time it is needed most.
*Tax-free
death benefits - Proceeds from an insurance policy paid because
of death of the insured are generally excludable form the
beneficiary's gross income for tax purposes (IRC Sec. 101(a)(1).)
Consult your tax advisor or attorney on your specific situation.
Benefit
is paid directly and immediately
Your
beneficiary will receive the policy proceeds without the inconvenience
of passing through the probate process.
Choice
of coverages
If
your protection needs are temporary, you may prefer the low
initial cost of term insurance. For protection needs that
are permanent, however you will want to consider a permanent
form of life insurance. You can even choose a combination
of permanent and term protection.
Tax-deferred
accumulation**
Earnings
inside a permanent life insurance policy will accumulate free
of current income tax. Taxes are deferred until you receive policy cash values exceeding the money you paid into the policy. (Unless the policy is a modified endowment contract.)
**Tax-Deferred
Growth-Income - Income and growth on accumulated cash values
has been held by the Tax Court to be generally taxable upon
withdrawal. (T.H. Cohen, 39 TC 1055 (1963), acq. 1964-1 CB
4 also, IRS. Sec. 72.) Consult your tax advisor or attorney
on your specific situation.
Guaranteed
premiums
I
can also offer you a participating whole life product that
features permanent life insurance protection with a guaranteed
lifelong premium that can never increase. As long as the policy
remains in force, you know exactly what the policy's guaranteed
minimum cash values will be. Affinity Par Whole and Affinity
Plus Limited Pay Par Whole feature strong guarantees and the
potential for you to receive dividends on your contract. (Forms
9294 & 9296)
Liquidity
Permanent life insurance allows you to obtain money from the policy's available cash value to meet emergencies or anticipated needs. The money may be received as a policy loan, which is not taxable. (Unless the policy is a modified endowment contract.)
Riders
If you
qualify, riders may be added to your policy with additional
premiums. (Not
all riders may be added to all
policies.)
A
two-year suicide provision is included in policies (one year
in Colorado and North Dakota). If a policyholder commits suicide
during the first two policy years, only a refund of premiums
will be made (Missouri requires coverage for acts of suicide,
unless it can be proved that the insured intended suicide
at the time the application was completed).
The
foregoing is neither a contract nor an offer to contract,
but is a general description of benefits available under a
policy providing the benefits outlined. The exact provisions,
terms and conditions of the contract are set forth in detail
in any such policy as may be issued.
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