LIFE POLICIES AT A GLANCE
INDEXED UNIVERSAL LIFE (IUL)
The Indexed Universal Life policy is permanent coverage that accrues cash value with every premium payment. These policies are great for Life Coverage or Mortgage Protection. A small percentage of each payment is set aside in the policy and accrues with interest. The interest rate is set per the performance of an Index e.g. S&P 500, Nasdaq, Blackrock, Morgan Stanley, etc, and can go as high as 10%. The policy supports itself. You can adjust your premium once there is enough cash value, and lower your monthly premiums if needed. This cash value is yours. You can withdraw it, take it as a loan against the policy, or surrender it for its cash value if you no longer need it.
WHOLE LIFE
Whole Life coverage is exactly what it sounds like: it’s for your whole life. You will not outlive a Whole Life policy. The premium, death benefit, and interest rate are all guaranteed to never change. The policy will be good until age 120. Whole Life policies will accrue cash value with the fixed interest rate assigned to the policy. This cash value can only be used as a loan against the policy or by surrendering it. While Whole Life is the most expensive option dollar for dollar, it’s excellent for children under 18 (lock-in rates for life!) and adults over 40 with health issues (Policies can go as low as $2000). Whole Life has much more liberal underwriting
TERM
Term Life Insurance is the exact opposite of Whole Life. It is temporary coverage for a specific period. These policies are great for Mortgage Protection or critical times in our lives, like when our kids are young. The premium will adjust after the set term duration. There are Annual Renewable policies where the premium will change every year. There are Term policies for which the premiums will change every 5 years. The most common Term policies come in set term durations of 10, 15, 20, 25, 30, 35 years. Once the term selected ends, the premium will adjust. Term insurance is the least expensive type of life coverage.
LIVING BENEFITS
Living Benefits come with the majority of policies we work with. Living Benefits are for Chronic, Critical, Terminal Illnesses and Critical Injury. You can use the Death Benefit while you are alive!!! The portion accessible depends on the severity of the illness or injury.