Whole life insurance provides coverage for the lifetime of the insured, provided premiums are paid when due. Premiums are set based on the age and health of the insured at the time of the contract and do not increase over time. Upon death, the insurance payout is made to the designated beneficiaries. Whole life is “permanent” insurance; part of the “cash value” category of life insurance. These policies — which also include universal life and variable life[i] policies — all include a cash value component.

Benefits of a Whole Life insurance policy:

  • Premiums are guaranteed to stay the same each year
  • Cash value available during the life of the policy[ii]
  • Funds may be added to the policy on a tax-favored basis
  • Your family is taken care of after your death
  • *Guaranteed death benefit, guaranteed cash value, as long as premiums are paid on time

Term life insurance provides coverage for a specific period of time.  Prior to the expiration of the term, the policy owner must decide whether renew the term policy or allow it to expire. An annually renewable term policy offers lower rates that rise with each passing year. This may be a good choice for those who expect their income to increase over time. A level premium term policy locks in a premium that is guaranteed to remain unchanged over the course of the term.

Benefits of a Term Life insurance policy:

  • Flexible term periods (10, 20, or 30 years)
  • Flexible benefit amount ($100K to millions)
  • Ideal for covering short-term needs (mortgage, college tuition, etc.)

*All guarantees are contingent upon the claims paying ability of the issuing company(s).

[i] Variable universal life insurance is sold by prospectus. Before purchasing a variable life insurance policy, investors should carefully consider the investment objectives, risks, charges and expenses of the variable life insurance policy and its underlying investment choices. For this and other information, obtain the prospectuses for the variable life insurance policy and its underlying investment choices. Please read the prospectuses carefully before investing or sending money.

[ii] The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for access to the cash value in the short-term, such as through loans or partial surrenders, these transactions will impact the policy’s death benefit if the values are not restored prior to the insured’s death. You should know that there may be little to no cash value available for loans in the policy’s early years.

Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty.

Access to cash values through borrowing or partial surrenders will reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Long-Term Disability Income Insurance (LTD) helps replace income lost for an extended period when a disability prevents you from working full-time. LTD starts once short-term disability expires, typically after three to six months. A policy can be customized by choosing the elimination period, the benefit period and optional riders* that work best for each individual’s needs.

Benefits of Long-Term Disability Insurance:

  • Comprehensive benefits that cover accidents and illnesses
  • Rider options (at additional cost) that suit individual circumstances
  • Protection over the course of a career, up to age 65
  • Tax-free benefits if individual coverage is purchased individuallly (non-group insurance)
  • Protection as long as premiums continue to be paid (non-group insurance)

*Riders are available at additional cost.

Long term care refers to the help needed on a daily basis for those afflicted with chronic illnesses, disabilities, and/or conditions that last an extended period of time. It can be expensive — and costs are expected to continue to rise. It is important to plan for this care before you might need it. There are several ways to plan for long term care expenses, and our team of advisors can help you determine the right strategy for your budget. A long term care event can have a significant impact on your future assets, and planning for it today may help you ensure that you will receive quality care in the setting of your choice, should you need it.