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Life Insurance - A vital 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.
Financial
privacy
Life insurance
is not a matter of public record. Your beneficiary
will receive the death benefit discretely upon
your death.
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 offer
you a participating whole life product that offers
you permanent life insurance protection with a
guaranteed lifelong premium that can never increase.
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.)
Guaranteed level premiums
with guaranteed values
The premiums
on a permanent whole life policy are guaranteed
never to increase. As long as the policy remains
in force, you know exactly what the policy's guaranteed
minimum cash values will be. If you qualify, riders
may be added to your policy with additional premiums.
(Not all riders
may be added to all policies.)
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Life
