Insurance

There are several different types of life insurances that can be used to meet your needs and goals. Below are some examples of the different types of insurances and their benefits.

Term Life Insurance:
A life insurance policy which provides a stated benefit upon the holder’s death, provided that the death occurs within a certain specified time period. However, the policy does not provide any returns beyond the stated benefit, unlike an insurance policy which allows investors to share in returns from the insurance company’s investment portfolio.

Permanent Insurance
Permanent insurance, including Whole Life Insurance, Universal Life Insurance and Variable Universal Life Insurance, can provide protection for your entire lifetime, or in certain instances up to a specific age—at which point the insurer pays the policy owner the cash value. Permanent life insurance policies can build a cash value—money that you can borrow against and in some instances, withdraw to help meet future goals, such as paying for a child's college education.
Permanent life insurance policies enjoy favorable tax treatment. Cash value generally grows on an income-tax deferred basis; that means that you pay no taxes on any earnings in the policy so long as the policy remains in force.  Withdrawals or loans against the cash value are, in many cases, tax-free.

Whole Life Insurance:
Whole Life is the most basic type of permanent life insurance. Depending on your age and health, your premium will purchase a specific face amount and accumulate cash value, as long as your premiums are paid. Generally, Whole Life premiums, while higher than term premiums, especially for younger individuals, are guaranteed not to increase. In addition, Whole Life policies can earn annual dividends which are based on investment, mortality, and expense experience. Dividends are not guaranteed.

Universal Life Insurance:
A flexible premium life insurance policy allows the policy owner to change the death benefit and vary the amount or time of premium payment. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates, which may change from time to time.

Variable Universal Life Insurance:
A form of whole life insurance which combines some features of universal life insurance, such as premium and death benefit flexibility, with some features of variable life insurance, such as more investment choices. Variable universal life adds to the flexibility of universal life by allowing the holder to choose among investment vehicles for the savings portion of the account. The difference between this arrangement and investing individually are the tax advantages and fees that accompany the insurance policy.

ANNUITIES
Annuities are here to help with your retirement and estate planning. Annuities have three basic advantages: Avoidance of Probate, Tax Deferral and Guaranteed income for life or Fixed period of time.  There many types of Annuities and our Annuity experts can help you identify which will be best for your goals. Below is a list of different types of annuities and their definitions.

Immediate Annuity:
Annuity in which payments to the annuitant or beneficiary start at once upon establishment of the annuity plan or scheme. Such annuities are almost always purchased with a single (lump sum) payment

Fixed Annuity:
guarantees a minimum interest rate while your annuity accumulates, and guarantees equal check amounts when you withdraw from the annuity.

Variable Annuity:
allows you different investment options for your funds, with a mutual fund as the most common choice. A variable annuity offers no guarantee to payout amounts, and your income from this annuity will fluctuate depending on the investment vehicle you chose. On occasion you may be offered an equity-based annuity which determines your interest rate based on an equity index such as the S&P 500.

Index Annuity
An indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. One of the most commonly used indices is the S&P 500, which is an equity index. The value of any index varies from day to day and is not predictable. When you buy an indexed annuity you own an insurance contract. You are not buying shares of any stock or index. 

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