Insurance World

Life, Accident and Supplemental Health Insurance

    No one can predict the future, but we can certainly prepare for it.

   Today’s families are concerned about the bigger picture: healthcare costs, retirement readiness, and protecting their family’s quality of life. That’s why we’re committed to helping provide holistic solutions designed to help people achieve a lifetime of financial security.

   Life insurance helps protect people’s financial future with solutions through every stage of life. Explore our range of cost-effective options below, and rest easy.

   Put simply, life insurance could be the most important purchase families ever make. From term to index universal life — and most everything in between — our solutions are designed to fit most circumstances, because life happens.

   Life insurance is one of the most game changing insurances. Many people think that life insurance is mostly about death, but if you look into it, you will find that it is mostly about life benefits. Let’s see what it does:

   1. When you want to take out a loan, lenders need to answer the question - who will pay the loan if the borrower dies or becomes disabled and cannot earn enough to repay the loan? The answer is life and disability insurance, which guarantees the return of the remaining loan balance if necessary. This type of insurance is called credit life and disability insurance and is mandatory in most cases when people want to get loans or mortgages. So, the functional purpose of this type of insurance is to enable people to become eligible for credit!

   2. Final expense insurance addresses the questions that people are concerned about – who will cover final expenses just in case? And this makes people forget about this problem while they live and focus on life's problems! With final expense insurance, prices are locked and will never increase nor will your policy end. These types of policies are designed to make sure funeral and other end of life expenses are covered.

   3. There are different types of life insurance, where life insurance can provide financial support during the life of a person, but who finds himself in a difficult life situation due to illness or disability. Disability, accident, critical illness and cancer insurance coverages and warranties will protect a person from all of these risks and dangers.

   4. Another question is how to protect your loved ones, who largely depend on your earnings, in the event of the death or disability of the person on whose support they are dependent. And there are a wide variety of different types of insurance and financial protection for these dependents, so that anyone can choose the one that will suit their particular situation in the most flexible way.

   5. Life and disability insurance can be critical for businesses, not just for people. What to do if the fate of the entire business critically depends on the well-being of its owners, key persons or specialists, and in a negative scenario the business can be destroyed if these people stop providing support due to their death or disability? Life and disability insurance with its additional coverages can once again provide financial support to businesses while they adapt to the new reality. In this case, this type of insurance protects the business and everyone involved in it – owners, shareholders, managers, employers, business partners and their families!

   6. And lastly, the most amazing thing! What if there are no negative scenarios and the insurance premiums are paid? Must they really be lost? There are a number of policies that create cash value for the insured by investing the insured's premiums in the stock market in the manner the insured wants - with guaranteed and stable growth without investment risk or with aggressive growth in cash value with higher investment risks. The policyholder can then withdraw the money back at any time, which will be equal to the amount of his insurance premiums, increased by dividends and reduced by the actual cost of insurance. And very often people can make a fortune by paying for life insurance!   

  And here's how it works: 

   Life Insurance is insurance against loss due to the death of a particular person (the insured) upon whose death the insurance company agrees to pay a stated sum or income to the beneficiary. In its purist form, life insurance states, "we will pay this amount when this person dies." Term Life Insurance is protection for a set number of years; expiring without value if the insured survives the stated period, which may be one or more years. Term life is designed to provide temporary protection in case a person dies during a set period of time. Whole Life is permanent level insurance protection for a person's "whole of life," from policy issue to the death of the insured. Characterized by level premiums, level benefits, and cash values. Group Life is a type of life insurance in which a single contract covers an entire group of people. Most often, the group is an employer-employee group. Those covered under a group life policy may or may not pay a portion of the premium and can usually choose their beneficiary. However, the insured typically does NOT own the policy, the group (employer) owns and controls the policy.

   Whole life insurance is designed to mature at age 100. For those insureds that live to age 100, the insurance company will issue checks for the full value of their policies. At that point, the policy expires. The contract has been completed.

   Another unique feature of whole life insurance is the living benefits it can provide. The cash value provides the policyowner a ready source of funds that may be borrowed against at reasonable rates of interest. These funds may be used for personal or business reasons. For example, they could be used to help pay for a child's education or to pay off a mortgage. It is not a requirement of the policy that the loan be repaid. However, if a loan is outstanding at the time the insured dies, the amount of the loan plus any interest due will be subtracted from the death benefit before it is paid.

   In addition, because life insurance is considered property with a quantifiable cash value, it may be used as collateral or security for loans. Also, the policyowner may draw on the cash value to supplement retirement income. Cash values belong to the policyowner. The insurance company cannot lay claim to these values.

   There is a number of different types of Whole life insurance. Straight whole life is whole life insurance providing permanent level protection with level premiums from the time the policy is issued until the insured's death (or age 100). Limited pay whole life policies have level premiums that are limited to a certain period. The most extreme form of limited pay policies is a single premium policy. A single, premium whole life policy involves a large onetime only premium payment at the beginning of the policy period. Modified whole life policies are distinguished by premiums that are lower than typical whole life premiums during the first few years (usually five) and then higher than typical thereafter. Equity index whole life insurance is a type of whole life where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. Similar to modified whole life, graded premium policies also redistribute the premiums. Premiums are lower than typical whole life rates during the preliminary period following issue (usually five to ten years). Besides term and whole life insurance, life insurers also issue endowment policies. An endowment policy is characterized by cash values that grow at a rapid pace so that the policy matures or endows at a specified date (that is, before age 100).

   The family plan policy is designed to insure all family members under one policy. A Family Maintenance policy pays a monthly income from the date of death of the insured to the end of the preselected period. Family Income policies pay an income beginning at the insured's death and continues for a period specified from the date of policy issue. A joint life policy is one policy that covers two or more people. A juvenile life insurance policy is a life insurance policy that insures the life of a minor.

   Credit life insurance is designed to cover the life of a debtor and pay the amount due on a loan if the debtor dies before the loan is repaid. The beneficiary of such a policy is usually the lender. The type of insurance used is decreasing term, with the term matched to the length of the loan period (though usually limited to 10 years or less) and the decreasing insurance amount matched to the declining loan balance.

   Similar to Credit life insurance, Mortgage protection insurance is a way to protect one of your most valuable assets in the event of a death. Most terms are designed to give you a full return of premium if you outlive the policy. With mortgage life insurance protection, in the event of a death, the mortgage will be paid in full, so your family can keep the house.

   In the 1980s, insurance companies introduced a number of new policy forms, most of which are more flexible in design and provisions than their traditional counterparts. The most notable of these are interest-sensitive whole life, adjustable life, universal life, variable life, and variable universal life. Universal life is a variation of whole life insurance, characterized by considerable flexibility. Unlike whole life, with its fixed premiums, fixed face amounts, and fixed cash value accumulations, universal life allows its policyowners to determine the amount and frequency of premium payments and to adjust the policy face amount up or down to reflect changes in needs.

   Equity Index Universal Life Insurance or Equity Indexed Life combines most of the features, benefits and security of traditional life insurance with the potential of earned interest based on the upward movement of an equity index. Unlike, a traditional whole life plan, this plan allows policyholders to link accumulation values to an outside equity index like S&P 500. 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. These policies are characterized by a guaranteed minimum interest rate, tax deferral of interest accumulations, and policy loan access.

   Index universal life insurance provides death benefit protection, index-based cash value growth potential over time, and a guaranteed minimum interest rate. It can be a great way to protect your loved ones and their financial well-being while building potential tax-advantaged cash value accumulation — all with downside protection. Plus, flexible premiums and optional living benefit riders for qualifying critical, chronic and/or terminal illnesses and flexibility for additional coverage options that allow you to customize your policy to fit your budget and protection needs. Index universal life insurance gives customers the opportunity to grow policy value through excess index interest (earnings above the guaranteed minimum rate) that may be credited to the policy based partly on changes in these major stock indexes: S&P 500® Index, EURO STOXX 50® INDEX, and the Hang Seng Index. It is important to understand the different account options to see whether this policy is a good fit.

   Index changes can be positive or negative. However, with a “guaranteed floor" option, customers have the security of knowing they will never be credited less than the guaranteed minimum interest rate, or "floor." The floor can protect cash values and helps ensure that segments with positive value will be credited with interest.

   Many people don’t realize there can be tax consequences when it comes to inheriting certain assets. Thankfully, Index universal life insurance provides a federal income tax-free death benefit to help protect families. Any cash value in the policy accumulates interest on a tax-deferred basis. That means greater policy value accumulation potential for customers. Customers enjoy easy access to their policy value. When the policy value is sufficient, they may request withdrawals or loans to use for any purpose they wish. Keep in mind that the tax advantages only apply as long as the policy remains in force. Allowing the policy to lapse could result in adverse tax consequences.

   Disability (income) Insurance is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.

   Supplemental Health Insurance policies such as Accident, Cancer, & Critical Illness Policies insure the beneficiary's earned income against the risk of losing incomes because of accident consequences, cancer and critical illness. No one would plan a car accident, being out of work, or being diagnosed with a critical illness. Buying supplemental health insurance can help provide the cushion every financial portfolio should have.

   Accidental Death and Dismemberment (AD&D) can provide financial benefits if an insured is killed, loses a limb, suffers blindness, or is paralyzed in a covered accident.

   You can't predict an accident, but you can prepare for one. When it comes to protecting yourself and loved ones from accidents, there are two solutions you could choose from. Also called “Accidental Death and Dismemberment” benefits, accident insurance policies can help protect you both on and off the job. These products are designed to help offset some of the costs associated with hospital stays, emergency treatment, intensive care units, ambulance rides, and much more. Accident insurance policies include an accidental death benefit that pays even more in the event of a fatal covered accident. Another form of protection against accidents is called accidental death insurance, which can pay only in the event of a fatal covered accident. Unlike accident insurance, accidental death insurance specifically covers certain risks such as travel, poisoning, falls, and other common unintentional deaths.

   A cancer diagnosis is the start of a very long and expensive journey for both the patient and the family. From the cost of treatment to the loss of income, the costs associated with cancer can often be too much for a family to even afford treatment. With the help of cancer insurance, your family can focus on what matters most – getting healthy again.

   Emergency room treatment, surgery, critical unit stays – when you’re facing a life-threatening moment from a critical illness diagnosis, like a heart attack, stroke, or other dread disease, the last thing you should be concerned about is the hospital bill. Other expenses associated with a critical illness diagnosis are loss of income, special medical needs, and major lifestyle changes. With the rising cost of health care, critical illness insurance can help offset your direct and indirect out-of-pocket expenses, letting you focus on what matters most – your health.

   There are a number of policy riders which adjust the policy depending on various critical situations. Waiver of Premium Rider: Allows the policyowner to waive premium payments during a disability and keeps the policy in force. Payor Rider (or Payor Clause): If the individual paying the premiums on a juvenile life policy becomes disabled or dies, the Payor Rider ensures that premiums will be waived. Accelerated Benefit Rider: Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness and expected to die within 1-2 years. Accidental Death Benefit Rider (multiple indemnity): Pays an additional sum to the beneficiary if the insured dies due to an accident. The amount paid is a multiple of the policy face amount such as double or triple the original benefit. Accidental Death and Dismemberment: May be added to a life insurance policy. Pays benefits for dismemberment and accidental death. Cost of Living Rider: Allows the policy face amount to be adjusted to account for inflation based on the consumer price index. Return of Premium Rider: pays the total amount of premiums paid into the policy in addition to the face value, as long as the insured dies within a certain time period specified in the policy. Automatic Premium Loan Rider: Allows the insurance company to deduct overdue premium from an insured's cash value by the end of the grace period if a payment is missed on a life policy. Dividend Options Participating policies pay dividends to policyowners if the company’s operations result in a divisible surplus.

   The death proceeds of a life insurance policy can be paid out in a variety of ways. The settlement options available to policyowners: lump-sum, interest-only, fixed period, fixed amount, and life income. 

   Continued financial well-being for families depends not only upon income from breadwinners, but also upon the continued good health of the businesses in which they are engaged. When people buy insurance for personal reasons, their families are concerned. When they buy insurance for business reasons, employees, associates, and families are involved. Life and disability insurance is used for businesses in a variety of ways:

• As a funding medium. For example, insurance can be used to fund a business continuation (buy-sell) agreement to transfer ownership between partners or stockholders, or to fund a deferred compensation plan. Buy-Sell Funding for Sole Proprietors is a two-step business continuation plan to keep the business running after the proprietor’s death or disability, whereby the employee takes over management of the business. Cross-purchase plans: In a cross-purchase plan, each partner buys, pays the premiums, and is the beneficiary of a life insurance policy on each of the other partners. The amount of the policy is equivalent to each partner’s share of the business. When one partner dies, each of the other partners receives the death benefit from the life insurance on the deceased partner, which is then used to buy the deceased partner’s ownership of the business.

• As a form of business interruption insurance. The insurance cannot prevent the interruption of business activity caused by death or disability; however, it can indemnify the business for losses created by these interruptions.

• As an employee benefit. Life insurance can protect employees and their families from the financial problems of death, disability, illness, and retirement.

   Life Insurance for Foreign Nationals: Foreign nationals who regularly visit, do business, or own property in the United States may be unaware of the potential estate tax exposure they may face. The life insurance solutions can help address this very issue. 

   If you need to purchase Life, Accident and Supplemental Insurance, please submit your request               .