PERSONAL INSURANCE

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Permanent Life Insurance Plan

Permanent Life Insurance Plan provides you coverage for the lifetime. Depending on the type of a plan, permanent life insurance may generate a cash value and/or be paid up in a set number of years. These policies have higher initial premiums than term policies, but unlike term life insurance, you never have to renew, so your rates won't go up.

How does permanent life insurance work?

There are two types of permanent insurance:

Whole Life Insurance - is a type of permanent insurance that provides coverage for your entire life and you will pay the same (level) premiums. You can pay up your policy in 10, 20 years or at age 65. This means that nevertheless that you will be paying premiums only for a certain period of time, you will be covered until age 100. Premiums for this type of insurance are initially higher than term insurance premiums, but in the long run, it can wind up costing you less. A whole life policy does not offer investment choices and produces very little cash values in the early years.

Universal Life Insurance Plan - is an extremely flexible form of permanent life insurance with potential tax-sheltered investment component inside the policy. It provides you coverage for the lifetime and caters to a wider range of needs and can include many options as well as tax-sheltered investment advantages.

Who needs term life insurance?

• • People who want to save for the future. If they let the cash value build up, they'll have more savings for their retirement, or to pass on to their loved ones. Your loved ones do not pay tax on the money they receive
• • People looking for tax breaks on their savings. They don't pay tax on any money they make investing the cash value until they take it out of the account
• • Would like to pay up their insurance fast
• • Want guarantees

Guaranteed and Simplified Issue

Guaranteed Issue Life Insurance is the simplest form of insurance. These plans have either no medical questionnaire or only a few simple eligibility questions, thus providing a solution for many people who would be turned down for the other products listed above. The benefits of a Guaranteed Issue product tend to be quite limited, so this plan is not always suited for someone who is eligible for a more traditional option.