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Life
Insurance: Life Insurance is a contract
between the policy owner and the insurer, where the insurer agrees
to pay a sum of money upon the occurrence of the insured individual's
or individuals' death or other event, such as terminal illness or
critical illness. In return, the policy owner agrees to pay a stipulated
amount called a premium at regular intervals or in lump sums. There
may be designs in some countries where bills and death expenses
plus catering for after funeral expenses should be included in Policy
Premium. In the United States, the predominant form simply specifies
a lump sum to be paid on the insured's demise.
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Lisa and Roger were
enjoying life as their family began to grow. With the birth of their
daughter Julie they began to think ahead to the future and what would
happen if one or both of them were to pass away.
Like most young couples
the thought was a quick one and quickly was placed on the back burner.
Soon they bought a home and began to prepare for the birth of their
second child.
Savings accounts set up, college funds, equity in their home, health
insurance, living life to the fullest neither Roger nor Lisa were
prepared for the events that unfolded. Waiting for Roger to arrive
home from work, dinner on the table the phone rang. Lisa found herself
unprepared and lost. Roger had been envolved in a fatal automobile
accident.
The days to follow were devastating for Lisa, making arrangements
for a funeral, trying to figure out what she would do without Roger.
Her problems had only begun. Soon the savings accounts, the equity
in her home, college funds, everything began to diminish. |
PERMANENT LIFE INSURANCE:
Permanent life insurance policies protect the owner
for as long as the premium payments are made
Permanent life insurance policies offer:
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TERM LIFE INSURANCE:
Term insurance provides protection for a specified period of time,
usually between 1 – 30 years and is usually renewabl. Term life
insurance is well suited for a young family looking to obtain a large
amount of protection, at a low cost.
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* Fixed or flexible premiums
* Guaranteed or non-guaranteed cash values.
* Cash value accumulates as a result of
the premium and investment performances.
*Some permanent policies offer policy dividends.
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People usually
choose this type of insurance for the following reasons:
* Cover Mortgage
Expenses
* Protection while children are in school, college or
university
* Protect dependents (in personal or business settings) |
They
are four types of permanent insurance policies: |
Whole Life insurance
Policy:
(aka traditional) : provides a lifetime protection
for as long as the premiums are paid. |
Variable
Whole life insurance policy:
Is a whole life insurance policy whereby the policy
owner dictates where the funds in the cash-value are to
be invested among several separate accounts. |
Universal Life
Insurance Policy UL:
(aka Flexible
Premium): Is a permanent policy that allows the owner
the flexibility to adjust the premium payments. |
Variable
universal life insurance policy VUL:
Is a universal life insurance policy whereby the policy
owner dictates where the fund in the cash-value is to
be invested among several separate accounts. |
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Types
of Term Life insurance policies: |
| Renewable:
The policy renews itself automatically in every year. The premium
goes up at the beginning of every year to reflect the increase
in age. |
| Level:
The premiums are guaranteed to stay the same over a period of
time, usually for the term of the policy. |
| Decreasing:
The face amount (aka Death Benefit) of the policy decreases
over time while the premium payments stay the same. |
| Return
of the premium (ROP): If the
insured dies while the policy is in-force, the beneficiaries
will receive the death benefit amount. If the insured lives
beyond the policy term, the owner receives the premium amount
back. |
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Annuities:
(generally there are two types
Fixed and Variable)
An annuity is a contract between you and an insurance
company, under which you make a lump-sum payment or series of
payments. In return, the insurer agrees to make periodic payments
to you beginning immediately or at some future date. Annuities
typically offer tax-deferred growth of earnings and may include
a death benefit that will pay your beneficiary a guaranteed
minimum amount, such as your total purchase payments. |
| Fixed
Annuities: |
| Fixed annuities are generally considered
by consumers (annuitants) for retirement planning.
Fixed annuities have a predictable rate of return.
The company (usually an insurance company) guarantees
a minimum floor interest rate, no matter how low
the economic interest rates will fall. The interest
rate offered by the issuing company, is fixed for
a period of time, between 1-10 years. Once the term
is over, a new interest rate is set for a new period
of time. Fixed annuities can be somewhat compared
to certificate of deposits (CDs). However, unlike
CDs, annuities are not FDIC insured. |
The strengths
behind fixed annuities are directly related to
the strength of the issuing company. Consumers
take no risk for as long that the issuing company
stays financially strong. |
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Variable
Annuities:
Variable annuities usually
have more features, and higher fees than fixed annuity.
Variable annuities offer a wide range of investment
options very similar than mutual funds, these options
within the variable annuity are called sub-accounts
During the accumulation phase, the annuitant can transfer
funds from one investment option to another one within
the variable annuity |
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The one thing that they did
not have in place, probably the only thing that would have made
a difference was Life Insurance. They really didn't consider
themselves at immediate need since both were in thier early
30's and looking at growing old together.
What would you do if you lost a spouse.....Would
your financial future be secure???? |
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Make
a confidential
and personalized appointment today!
Representing numerous top
rated companies.
727-541-2173
727-541-1704 fax
silversgold@aol.com |
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