Life Insurance- Many people think that life
insurance is only for people with families. While it is true that life
insurance can help provide for the needs of dependents, life insurance
also can be an important part of a well-thought-out estate, business
succession or charitable giving plan. And permanent life insurance offers
many living benefits as well, such as tax-deferred accumulation. For all
of these reasons, life insurance can be important for someone starting out
— or for someone who's starting over.
You can use the articles on
this page to learn more about the various types of life insurance that are
available.
- Whole Life - Whole Life insurance is also known
as permanent insurance. You receive coverage for your entire life, as
long as premiums (which are a set amount per period) are paid. Whole
life policies accumulate cash value tax-deferred.
- Term Life - Term Life policies provide coverage
for a specific amount of time – such as 5 years, 10 years or 20 years.
Term premiums are often less expensive than whole life premiums, but
once the term of the policy is complete, coverage terminates. There is
no accumulation of cash value.
- Universal Life- Like Whole Life, Universal Life
is a permanent insurance policy, which means that it covers you for your
entire life, as long as premiums are paid.
Universal life, however, offers you flexibility that enables you to change your premiums and death benefit as your needs change.
- Variable Universal Life- Variable Universal
Life combines the premium and death benefit flexibility of a Universal
Life policy with investment opportunities. You can allocate your premium
amongst a variety of professionally managed investment divisions plus a
fixed account. Of course, with investment opportunities comes risk along
with the potential for reward.
- Joint
Life - Joint Whole Life Insurance – also called "first-to-die life
insurance" – insures two people on the same policy. The proceeds of the
policy are paid at the time of the first individual’s death.
- Survivorship Life - Survivorship life insurance
– available as whole life, universal life or variable universal life# –
covers two people and provides payment of the proceeds when the second
insured individual dies. Survivorship life insurance is often used to
help meet estate planning or business continuation goals.
- Asset Preserver - Asset Preserver is a considered
a "blended product." It is a universal life insurance policy with a
long-term care option that allows you to access the death benefit,
income tax-free, to pay for certain long-term care needs. Your
beneficiaries receive whatever death benefit moneys you have not used
toward long-term care.
As an example, if you were a business owner and suddenly had an incapacitating injury, the expenses of the office must continue to be paid. Salaries, rent, equipment and other vital services of an office must continue to be covered, or the business will shut down. If the individual returns to work after the illness and cannot start the business again, serious, substantial, long-term loss of income results. Disability insurance can fill the gap.
What are the odds you will become disabled by age 65?**Disability Probability taken from 1985 Exposure Draft Report to The Society of Actuaries.
If Your Age Is The Odds You Will
Become Disabled Are30 42% 35 41% 40 39% 45 36% 50 33% 55 27%
That so many people today have to spend their remaining days in facilities where they have no choice of services or benefits is a national tragedy. In order for individuals to receive the kind of care that they want after a disabling illness or injury, or in the latter days of their lives, it is critical to plan ahead. Once a problem has been formally diagnosed, it may not be possible to get insurance that will cover that condition, or any other conditions in the future.
# Offered by NYLIFE Securities LLC. (member NASD/SIPC), 51 Madison Avenue, New York, NY 10010.