Permanent Life Insurance has a wide array of options built into the policy, but the basic concept is to provide a policy which will be in-force for the life of the insured. Because this type of policy typically has a permanent, constant, level premium, it will be considerably more expensive than term insurance. It will however have an additional benefit since a portion of the annual premium will be used to fund a cash value account, which can be used for various purposes including supplementing retirement income, paying off a mortgage, funding a college education or meeting a variety of other financial needs.

The cash value growth of a permanent policy is tax deferred. You do not pay taxes on the cash value increases until the growth exceeds the premiums paid.

The cash value earned and borrowed from a permanent life insurance policy can be used to help with emergency expenses, college funding, or retirement income. Policy loans reduce cash values and death benefits, and may be subject to other charges outlined in the policy.

Term Life Insurance provides protection for a specified period of time. Initially the cost is affordable but this type of coverage should be thought of as temporary since it typically has a specified period of coverage or if it renews on an annual basis the cost at later years may make it cost prohibitive to continue the coverage. Term policies may be convertible to permanent coverage. 

Term policies contain no cash values, are designed for pure protection and are particularly suitable . . .

• For protection against outstanding loans and debts for which family members may be responsible.
• For families who feel they cannot currently afford a permanent policy but who need coverage to protect their children from financial hardship due to the potential loss of a parent.
• As a means of protecting against mortgage obligations.
• To guard against uninsurability in the future... if you buy term insurance now, you can continue this coverage and possibly convert the policy in the future even if you become uninsurable.
• To protect key people of a business in its formative years of growth.
• To provide coverage on other family members.
• To purchase time - time to increase your earnings so that the coverage can be converted to a permanent policy without evidence of insurability.

Life insurance is a crucial step in planning for your future. Life insurance can fulfill promises made to your family if you are no longer living, and today's newer products can provide additional benefits while you are living. 

Determining Your Need

The need for life insurance is dependent on your own personal and financial needs. We can assist you in determining what type and amount of life insurance is appropriate for you. Typically, your need for life insurance varies as you go through different periods in your life.

• Single Individuals.  You may think that just because you’re single you have no need for life insurance.  Many single individuals have incurred significant debt while obtaining a college degree and financing their active life styles.  In addition, a permanent life insurance policy can help begin the process of investing for the future while ensuring coverage will be in place for future needs of life coverage.
• The Beginning Years Of Marriage . . . you begin a new life together.  You now share everything with your spouse including your financial dreams.  Most people who are just starting a life together will incur debt as they build for their future.  Many will not think about the need or value of life insurance until they have children.  However, the younger you are when you buy life insurance the smaller your premiums will be.  Even more valuable is the potential growth in the value of your policy if you should decide to purchase a permanent life insurance product that builds value for retirement or future purchasing power. 
• The Family Period . . . when children arrive, the need for insurance increases considerably.  With dual income families the need for life insurance covering both marriage partners has become more prevalent than ever before.  If you died prematurely could your spouse maintain the current life style that you have become accustomed to?  You should plan for the future even if it means purchasing term coverage until you can afford a more permanent product.  
• The “Mortgage” Years . . . buying a home represents one of the largest investments most people will ever make.  Mortgage cancellation insurance can provide the funds to pay off the mortgage if the insured should die.  The mortgage is just a small piece of the life insurance needs puzzle.
• The Middle Ages -Your Income Producing Years. As the years go by and some of your obligations begin to decrease you may feel your need for life insurance is decreasing.  Even when the children have completed college and your mortgage is nearing completion you still need to plan for what lies ahead.  Will government sponsored retirement programs and individual retirement and savings plans be adequate to carry you through your retirement years?  How long will your retirement funds need to be available?  Can you or your spouse predict the age that you will die?  These are all unknowns and having life insurance coverage in place can assure that a surviving spouse will have funds available even if you have passed away.  It is also important to keep in mind that some company retirement programs are going to request a distribution selection when you decide to retire.  Will you be taking a lower monthly retirement benefit to ensure that your surviving spouse can continue to receive a portion of your retirement upon your death, or will you decide to take the maximum benefit and fund your spouse’s remaining retirement years in another way?
• Retirement Years.  During this period it is wise to be considering the cost of death.   Will medical bills and long-term care diminish your retirement funds and estate to a level that prohibits you from doing what you wanted with your lifetime of earnings?  Do you want your heirs to sell your assets for distribution or to pay any estate taxes?  Life insurance proceeds could help minimize the stress for your survivors at the time of your death.  

Specialized life insurance products for Business Owners.

When dealing with any of the following concepts it is advisable to have an insurance professional assist you so that you follow all government rules and guidelines to assure that your desires are met at some future date.

• Buy –Sell Agreements.  These agreements help ensure that remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. Typically, the funding mechanism for the Buy-Sell is a life insurance product which is purchased on each of the business partners. The Buy-Sell agreement allows the family to receive its value in the business while the business can continue on with the same owners.
• Key Employee Coverage. This concept protects a business in case of the death of a key employee. A life insurance policy is purchased on the key person.  The insurance benefit is paid to the company in the case of an untimely death of the key employee and  provides the owners of the business with the flexibility needed to either hire a replacement employee or establish some other form of business arrangement.
• Section 162 Plans.  This is often called the executive bonus plan and they are a simple way to reward top people within a company.  The basics of this plan include the employee purchasing a permanent life insurance policy on his/her own life and the company bonuses the employee the cost of the policy. The reimbursement will often be a bit more than the life insurance premium since the benefit of the policy premium is taxable to the employee while also being tax deductible for the employer.  The employee has full control over the policy and all its provisions.

Additionally, you may want to consider financial needs associated with an aging parent, or a physically challenged relative who depends on you for support. Needs can increase for people who own their own business.

These are the benefits of life insurance other than providing for your loved ones in case something happens to you:

• The Cash Value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as a college education or the down payment on a home.
• Tax Deferred Cash Value Growth - value policy is tax-deferred - you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
• Life Insurance - A "Good Servant" Through The Years Thus, from the beginning to end, life insurance can be the most useful and beneficial "friend"... safeguarding us from many of life's financial hazards.

Life Changes - So Should Your Policy 

Your need for life insurance is dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change as well to adapt to your current needs. Some life changes that may require a policy "tune-up" include:

• Marriage
• You have a new child or grandchild
• Your health or your spouse's health has deteriorated
• You are providing care or financial assistance to a parent
• You recently purchased a new home
• You are planning for a child or grandchild's education
• You are concerned about retirement income
• You have refinanced your home mortgage in the past six months
• You or your spouse recently received an inheritance