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
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.)
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.
