A simple path, with no pressure.

Term life insurance is the simplest type of life insurance. It provides protection for a specified period (or term) and pays a benefit only if the insured dies during that period of time. Premiums after the initial term usually rise at each renewal, reflecting the increased risk to the insurer. An important feature to consider when purchasing Term life insurance is a convertibility option which allows the owner of the policy to convert to a whole life (or permanent) plan without evidence of insurability. Conversion rights and deadlines depend on the policy.

Life insurance utilizes the principles of risk pooling and the law of large numbers to provide beneficiaries a generally income tax free death benefit upon the death of the insured. For centuries, people have pursued financial security for themselves and those who depend on them. When death takes the life of a family provider, business partner, or key employee, those left behind often suffer if they are left without adequate income or recompense.

Whole life insurance (also known as permanent or cash value insurance) is so called because it provides permanent protection from the date of issue to the date of the insured’s death (or the insured’s whole life), provided premiums are paid. The premium on a whole life policy is guaranteed per the contract to remain the same throughout the insured’s life. In addition to a generally income tax free death benefit (common with all life insurance) whole life insurance also provides unique living benefits. Through the cash value accumulation build-up in the policy, a policyowner has a ready source of funds that may be borrowed. These funds can be used for anything the policyowner wishes. The policyowner chooses whether and when to repay, but interest is charged. See “How do policy loans work?” below. However, if a loan is outstanding at the time of the insured’s death, the loan plus any interest will be subtracted from the death benefit before it is paid out. In addition, because life insurance is considered property or an asset with a quantifiable cash value, it may be used as collateral for loans. The policyowner may also draw on the cash value to supplement retirement income. Tax treatment depends on the policy staying in force and not becoming a modified endowment contract (MEC), so please speak with a qualified tax professional.

Both serve a purpose. Term insurance covers a set period, usually at a lower initial cost. Whole life is designed to last your lifetime as long as required premiums are paid, and builds cash value. The right mix depends on your goals and budget, and we will tell you plainly which fits you. Contact us or schedule an appointment today.

Some people use a rule of thumb such as 20-30 times annual income as a starting point. However, the proper response to this question should actually be more questions because the amount of life insurance is in direct relation to the risk of loss which is specific for every individual, organization, or business. In addition, the amount of life insurance required changes as often as circumstances change (age, babies, marriage, debts, business valuations, etc.). There are typically two ways to determine how much life insurance death benefit is required: the first is through a needs analysis which looks at a number of factors and needs to determine a specific amount. The second method is called human life value and is based around an insured’s future income potential. The human life value is easier to determine (ie: 20-30 times annual income) and recommended for personal insurance needs while the needs analysis may be better suited to specific clients, organizations, or businesses.

We recognize every situation is unique and would be happy to assist in a review of any current coverage and/or help determine new life insurance needs. Please schedule an appointment with us today.

It depends… There are two primary considerations. The first is the type of life insurance coverage and optional riders added. By this we mean there are various types of life insurance coverage from the simplest policies such as term insurance to permanent policies with living benefits, guarantees, and optional value added riders. The second consideration in the price of life insurance revolves around risk factors like age, health, preexisting conditions, and exposure to high risk activities (smoking, skydiving, scuba diving, and non-commercial pilots) together these two considerations are the primary determinants of a premium. The Life Rock focuses first on understanding the client’s needs and only then selecting the right products from the insurers we work with. Many insurers have different niche products, rules, or processes that can either help or hinder a client based on their particular needs and desires. Where more than one insurer fits, we compare products, quotes, illustrations, processes, and underwriting.

It is a strategy, described by Nelson Nash, of using the cash value of a specially designed whole life policy as a source of funds you can borrow against, then repaying the loan with interest. Borrowing reduces the cash value and death benefit while a loan is outstanding. It is a way of using an insurance policy. The policy is not a bank account, and it is not an investment.

A planning approach that uses dividend-paying whole life insurance as the base of a financial plan. Our practice is led by a Bank On Yourself® Professional. Bank On Yourself is a separate organization.

You can borrow against the cash value of the policy, using the policy as collateral. You choose whether and when to repay, but interest is charged. Unpaid loans and interest reduce the cash value and the death benefit, and a policy can lapse if loans grow too large. Lapse can have tax consequences.

No. Dividends depend on the insurer's experience and are set by the company each year. A dividend may be higher, lower, or zero. A policy illustration that shows dividends is a projection, not a promise or a guarantee of future results.

Life insurance has tax advantages under current law, such as generally income-tax-free death benefits and tax-deferred cash value growth. These benefits depend on the policy staying in force and not becoming a modified endowment contract (MEC), and tax laws can change. Please talk with a qualified tax professional about your situation.

Usually years. Early on, a large share of premiums pays for insurance costs and policy expenses, and cash value is typically lower than the premiums paid in the early years. Whole life is a long-term commitment, and surrendering early can cost you.

Most people are familiar with the death benefit, which is generally income tax free, associated with life insurance policies. However, not all people are familiar with the living benefits of certain permanent policies. Most permanent policies have a cash value component that can build up over time. Not all of these policies are created equal though some have guarantees and others put the risk on the individual. Additionally, permanent policies need to be designed correctly for each client. Life insurance can be one part of a financial plan for some people. If designed properly and used in tandem with the right knowledge, life insurance can help reduce some financial risks such as volatility and market risk. Life insurance is not an investment and is not right for everyone. If you would like to learn more about how life insurance may fit into your plan please contact us or schedule an appointment today.

Whole life insurance is widely available but is not heavily advertised, and it works differently from the savings and investment products most people hear about. It is a long-term insurance contract, not an investment, and it is not right for everyone. We are happy to explain how it works and when it does not make sense.

We are licensed in multiple states, but not every state. Tell us where you live when you book a call and we will confirm we can help you.