Annuities

These are savings instruments that accumulate retirement assets on a tax-preferred basis. Fixed annuities grow based on market interest rates while variable annuities grow based on the mix on mutual fund-type investments. The accumulated account value may be converted into a stream of income guaranteed for life.

Universal Life Insurance

Permanent life insurance with a flexible premium and a cash value that grows based on current market interest rates. The policy owner may choose to pay higher or lower premiums depending on his/her own income cycles.

Term Life Insurance

Temporary coverage designed to last for a specified time frame – usually five, ten or twenty years. Premiums will increase on a set schedule after the initial term expires. No cash value accumulates, although many plans offer a conversion rider that allows the owner to convert the plan into a permanent policy.

Whole Life Insurance

Permanent life insurance designed to last through your life expectancy. The premium remains fixed and level as long as you own the policy. The policy’s cash value grows at a guaranteed rate and may also accumulate dividends.

Disability Income Insurance

Provides an income source to you in the event that you are unable to work due to accident or disease. Generally a maximum of 60% of your reported income may be protected. The insurance company offers support and incentives to help the partially disabled individual return to work.

Long-Term Care Insurance

Helps aging individuals pay for home health care, assisted living and nursing home care. The plan is activated when you are not able to manage your own personal care on a daily basis. Federal and state tax laws favor the purchase of long-term care insurance.

Riders

Disability Waiver of Premium

If you’re unable to work due to illness or injury for six months or more, the insurance company will pay life insurance premiums. Whole Life plans will continue to accrue all scheduled cash values and dividends; Universal Life plans will generally not accumulate additional cash values, but will remain in force during the period of disability.

Accelerated Death Benefit

A benefit in which you may take up to 80% or 90% of the death benefit while still alive if diagnosed with a terminal illness.

Conversion

This means you can convert your term policy “without evidence of insurability,” e.g., without a medical exam, into one of the permanent plans offered by your insurer. The insured must pay the new premium based on their age at the time of conversion.

Family & Child Insurance

The spouse and/or dependent children of the primary insured may be covered at a percentage of your death benefit.