We take the time necessary to evaluate your personal or corporate goals. In many cases, we coordinate with your attorney and CPA to create a solution resolving both legal and tax hurdles and ultimately, will design a life insurance program fulfilling your personal or business objectives.
Life Insurance Policy Types:
Premiums stay level for 10, 15, 20, 25 or 30 years (“guarantee period”) depending on the length of your life insurance needs. Term insurance provides short-to-mid range solutions and provides a death benefit with no cash value accumulation. When the term policy completes its final year of the “guarantee period”, the policy eitherterminates or the premium increases substantially. Choosing the right “guarantee period” is paramount to avoid having the policy terminate or become unaffordable while the need for death benefit still exists.
Permanent Life Insurance:
Whole Life: A traditional long-term life insurance solution. Policies generally develop sizable cash values in later years. Premiums are fixed and policies contain guaranteed minimum cash values and death benefit features. Projections estimate higher accumulation values although they are not guaranteed. Death benefits are usually income tax free.
Universal Life Insurance: A lower cost solution for a permanent life insurance policy. Premiums are flexible and can be changed within a minimum and maximum range, to adapt to your changing personal and business needs. The policy cash values in excess of your accumulative payments are tax deferred, while death benefits are typically income tax free.
Variable Life Insurance: A permanent life policy with an investment component. A portion of your premium can be used to invest in a variety of investment vehicles allowing stock and bond returns in a life policy. As a result, premiums are generally higher than a universal life policy. Advantages: the opportunity to earn higher returns and greater cash values than traditional life policies while maintaining a tax deferred status; Disadvantages: higher costs and more risk i.e., returns are not guaranteed beyond a minimum floor.