TRADITIONAL LIFE INSURANCE
TYPES AND CHARACTERISTICS
There are many variations in the types of life insurance plans that are available today. The key is to choose the type and diversity of benefits that best suit the unique needs and purpose for the insured and their survivors. The most recognized types of coverage are the following:
-
Term Life
-
Permanent Whole Life
-
Permanent Universal Life
-
Permanent Index Universal Life
-
Final Expense Life
​
Each of these serve a specific purpose in your Life Plan, In many cases, a combination of one or more of these plans in conjunction with other tools can be combined to provide a comprehensive program of protection and living benefits for your survivors while contributing to your wealth accumulation program.
​
There are also other variations of the above-stated types such as Juvenile Life.
​
I-A PRO works with numerous premier life insurance carriers in the industry so that our clients get the best value at the lowest possible costs.
​
Find out more!
Call I-A PRO today!
612-819-2460
TERM LIFE INSURANCE
General Features
-
Provides a fixed amount of as death benefit is fixed for the period of the term (e.g., 10, 15, 20, or 30 years)
-
Premiums are fixed for the period of the term
-
Usually includes a terminal illness benefit
-
Least expensive life insurance while in-force
-
Premiums rise steeply on renewal (based on age)
-
Conversion to permanent life insurance before age 65 without proof of insurability may be available
-
Return of Premium (ROP) may be available if insured lives to term – Increases fixed premium substantially
-
Protected from external forces
-
Policy owner has total control
-
Payment of death benefits to beneficiary is usually tax-free
Typical Usage
-
Protect survivor benefits for coverage of short-term debt (e.g., mortgage, college debt, credit cards, other loans, etc.)
-
Protect survivor benefits for lost income for a discrete period
-
Business Key Person coverage
-
Business Owner cross-purchase buy-out coverage
Permanent Whole Life Insurance
General Features
-
Death Benefit is fixed through age 100
-
Premiums are typically fixed through age 99
-
Usually includes a terminal illness benefit
-
Generates a cash value with interest (typically 2.5% to 3:0% per year)
-
Protected from external forces (i.e., Does NOT lose increased value)
-
Owner has total control
-
Premiums usually higher than term life insurance
-
Payment of death benefits to beneficiary is usually tax-free
Typical Usage
-
Provide survivor benefits
-
Provide longevity benefits
-
Cash savings reserve – Living benefits that can be used to meet financial obligations (typically tax-free interest).
​​​
Availability of Term and Permanent Life Insurance​
-
Group plans through the workplace
-
Individual plans through the workplace
-
Individual plans directly from the private market​
An Important Notice About Group Life Insurance Plans Offered Through Your Workplace​
With few exceptions, group life insurance plans provided through the workplace are NOT transferable or portable. If you leave your employment, you will likely lose your coverage!​Some individual plans like those offered by supplemental carriers such as Aflac are 100% portable for the individual.
Final Expense Life Insurance
General Features
-
Death Benefit is fixed
-
Premiums are fixed through age 100 or less
-
Generates a cash value with interest (e.g., 2.0 % to 3.0% per year)
-
Typically there is a wait period for deaths caused by illnesses (return of premium paid if insured dies within 1st two years)
-
No wait period if death caused by qualified accidents
-
Protected from external forces
Typical Uses
-
Provide survivor benefits
Also see:
INDEXED UNIVERSAL LIFE INSURANCE
The Permanent Life Insurance policy on steroids!
Call I-A PRO today!
612-819-2460
THE SECRET
COMPOUND INTEREST THAT GROWS BASED ON STOCK MARKET
PERFORMANCE WITHOUT THE FEAR OF FINANCIAL LOSSES!
Use the MARKET WITHOUT BEING in the MARKET!
EXAMPLE:
Sevings account A and savings account B each have $100,000 cash balance in January 1996.
​
Account A earns interest based on the performance of the S&P 500 stock market index, both gains and losses. If the index exceeds 0%, the interest credited to the account balance is the growth of the index. If the index is less than 0%, the account is adjusted by the negative interest and the principle balance changes accordingly.
​
Account B earns interest based on the performance of the S&P 500 stock market index also but has a floor. If the index exceeds 3%, the interest credited to the account balance is the growth of the index less 3%. If the index is 3% or less, the account balance receives no interest and the principle balance does NOT change.
​
Using this example over the period 1996 through 2016, Account A would end the period wilh a gross principle balance of $304,567. Over the same period, Account B would have a gross principle balance of $551, 921.
21st CENTURY INNOVATION
​
INDEXED UNIVERSAL LIFE INSURANCE (IUL)
THE NEW STANDARD IN WEALTH ACCUMULATION AND PROTECTION
IT JUST KEEPS GETTING BETTER!
​
​
Leading Carriers Have New and Improved Performance Options that Opens the Maximum CAP on Accrued Compounded Interest to Unlimited Growth.
IUL - Indexed Universal Life Insurance
Alliance Group
Frequently Asked Questions
​
How does IUL compare to a normal investment savings plans (e.g., 401K, Roth IRA, 403b -457 plans, pensions, or mutual funds) in terms of performance, flexibility, taxes, & risks? The answer will likely surprise you!
What appears on the surface to make sense in these normal investment portfolios may actually degrade your ability to achieve your goals - You will most likely have a higher probability of OUTLIVING your available money!
​
What If I have already have some of these plans in-place? Sterling Secure's Strategic Life Planning will help you to align all of your assets that works best for your short-term and long-term needs and goals.
​
Contact Sterling to get the amazing details!
612-819-2460
Performance - Flexibility
Safety - Freedom
INCOME - EQUITY PROTECTION GROUP
Accelerating Results
​