Invest in Life Insurance

TERM INSURANCE is as straightforward as it sounds. The purchaser buys insurance for a specified period or "term". The length of the term, which is set by the insurance policy, can be as short as one year or as long as 20. The purchaser would pay level premiums over the course of that term. Once that term is over, the purchaser would have to renew or buy a block of insurance from another company. The premiums would increase as the purchaser ages in accordance with higher mortality rates.

The advantage to term is that it is usually less expensive in the beginning than whole life insurance. This is because it is a pure life insurance product. Since term is initially cheaper than whole life, consumers can invest the difference in market vehicles of their choice. This can provide individuals with more control over their investments. Term insurance is a cost effective way of purchasing peace of mind in case the worst happens.

WHOLE LIFE INSURANCE, sometimes called "level premium", is a bit more complex. Level premium is not just a pure insurance product. Unlike term, whole life builds value. The premium usually starts out more expensive than term, but is usually more affordable in later years since it has a steady premium.

Level premium insurance can be sold for at least as much as its cash value when no longer needed. The policyholder would have to pay tax on the excess of the policy value over the premiums paid as if it were income. There is a general rule of 15 to 20 years for deciding what sort of insurance to purchase. Whole life is usually the best choice if the purchaser of the insurance wants to fund something or be covered for more than 20 years.

There are other reasons to go with a level premium policy as well. It is ideal if the purchaser knows that he or she is going to have to finance a particular item when they die, such as a buy/sell agreement for a business, estate tax planning or bequeathing to a charitable entity, since the death benefits have no income tax liability. With a level premium policy, the insured is guaranteed to collect as long as he or she pays the premium. With term, the premiums may become too expensive as the client gets older.

A financial plan without protection is an incomplete plan. A consumer should start looking into purchasing life insurance once they have loved ones who would be affected financially by their death. Life insurance can help protect the financial security of individuals and families.

Disability Insurance

Your Passport to Income Protection. If you've never considered disability income insurance before, you may wonder why you need it now, especially if you're young and healthy. But most professionals, at all stages, at all income levels, need solid disability income protection. Disability Income Insurance can help you protect your earning capacity.

Chances are you already protect your important assets, such as your house. Your health insurance can only cover your medical expenses; it can't provide a regular source of income. Why not help protect the most important asset you have--your ability to earn an income?

Helps provide a substitute source of income if you are Totally Disabled and cannot work. Provides monthly benefits to aid in paying personal bills when disabled.

Choice of Monthly Benefit ($150 To $7,500 A Month)

Choice of Waiting Periods (30, 90, 180 or 365 Days)

A waiting period is the number of consecutive days you must be Totally Disabled before benefit payments begin. You should choose a Plan that will provide benefits when your salary continuation plan runs out.

Definition of Disability - Disability Plans pay monthly benefits while you are Totally Disabled. "Totally Disabled" is defined in the Policy as being prevented by accident or sickness from performing the material and substantial duties of your usual occupation, provided you are not otherwise working for pay or profit. Benefits begin at the end of the waiting period.

Survivor Benefit

If you die--from any cause--while receiving benefits for Total Disability, a death benefit equal to three times the Monthly Benefit Option in force on the date of your death will be paid to your surviving relative(s) in the following order of survival: your spouse; or your children, equally; or your brothers and sisters, equally; otherwise to the executor or administrator of your estate.

Rehabilitation Benefit

This benefit is designed to help certain disabled members return to the work force. A professional rehabilitation staff reviews case histories and identifies individuals who appear to have the greatest likelihood of rehabilitation. Individuals selected by the Insurance Company are offered the chance to participate in a rehabilitation program at no cost to them. Benefits are not reduced for members who agree to participate in this program.

Partial Disability Benefits

While you are recovering from a Total Disability, you may be eligible to receive a partial disability benefit even though you return to work. If you return to work immediately following a period of Total Disability for which benefits were payable, you may continue to receive your monthly disability benefit until the earlier of the end of the maximum benefit period for Total Disability, or 24 monthly payments. However, the amount of your Monthly Benefit Option together with all other disability benefits and income you earn that month, cannot exceed 80% of your MONTHLY GROSS EARNED INCOME for the 12 months before Total Disability started.

Premium Payments Waived During Disability

After you have been Totally Disabled for six months you begin to receive benefits for Total Disability, all future premium contributions under the Plan will be waived for as long as you receive benefits for that disability.