Private Client

Private Client

Life Insurance Products

Life insurance has many unique characteristics that may make it an appropriate solution for a variety of challenges, beyond those that arise at the death of the insured(s). In addition to death benefit coverage, life insurance offers:

• Tax-deferred accumulation of policy cash values.
• Creditor protection (in some states).
• Tax-advantaged access to policy cash values. Please keep in mind loans and partial withdrawals may decrease the death benefit and cash value may be subject to policy limitations and income tax.

The flexible nature of many modern life insurance policies provides a powerful means to address a wide range of personal, business, and charitable situations. Determining the type of insurance policy is crucial in meeting the needs and goals of the policyholder.

Whole Life Insurance provides permanent death benefit coverage outlined by concrete guarantees and premium payments up until death of the policyholder. Whole life policyholders must sacrifice premium flexibility for the guarantees of the contract. Premium payment on schedule is not necessary for a guarantee of a death benefit. The premium for whole life insurance typically is the most expensive in comparison to other policies.

Universal life insurance provides permanent death benefit coverage. Its benefits include cash value accumulation and premium flexibility. Provided the policy cash values are sufficient to pay the cost of the insurance coverage, the payments of the premium are flexible. The most typical death benefit options are a level or increasing death benefit. The increasing death benefit has a level amount plus either an amount equal to the cumulative premium life contracts or equal to the value of the policy. Types of Universal Life include:

• Universal Life (general account)
• Variable Universal Life
• Indexed Universal Life

Term Life Insurance provides a temporary low cost death benefit. Term insurance does not build cash value. Typical Term Life insurance durations are 10, 15, 20 and 30 years. The benefit and premium are guaranteed for that term, however, after the term has expired the coverage either ceases or the cost increases to a number which in most cases is unaffordable.