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Life Insurance

The basic building block of financial planning is protection.  By getting enough life insurance you are protecting your loved ones so that the money is there to continue their lives without disruption. It has been said that getting life insurance is an honorable and selfless act and that is so.  You are taking responsibility for the financial future of people you love.  Congratulations on this first step and it is our goal to help you find the most efficient and economical method in building one of the building blocks of sound financial planning.

Term Life

The simplest form of insurance.  You purchase coverage for a specific price for a specified period.  If you die during that time, your beneficiary receives the value of the policy.  There is no investment component.

Whole Life

Similar to term, but you purchase the policy to cover your "whole life" not just a set period.  Premiums remain level throughout the life of the policy, and the company invests at least a portion of your premiums.  Some firms share investment proceeds with policyholders in the form of a dividend. Many companies will offer "a relatively low guaranteed rate of return," but in reality pay at a rate in excess of the guarantee.

Universal Life

You decide how much you want to put in over and above a minimum premium.  The company chooses the investment vehicle, which is generally restricted to bonds and mortgages.  The investment and the returns go into a cash-value account, which you can use against premiums or allow to build.


  • With some policies, sometimes called Type I or Type A, the cash account goes toward the face value of the policy on the death of the policyholder.

  • With a second variety, sometimes called Type II or Type B, the beneficiary receives the face value of the policy plus all or most of the cash account.

  • While Type II is meant to provide a partial hedge against inflation, it demands higher premiums as you get older than Type I.


A variation of a universal policy, often called universal variable life, allows policyholders to choose investment vehicles.

Indexed Universal Life

Great way to save for retirement and receive the contributions TAX FREE!!)

Indexed universal life (IUL) allows the owner to allocate cash value amounts to either a fixed account or an equity index account.  Policies offer a variety of well-known indexes such as the S&P 500 or the Nasdaq 100.  IUL policies are more volatile than fixed ULs, but less risky than variable universal life policies because no money is actually invested in equity positions.


IUL policies offer tax-deferred cash accumulation for retirement while maintaining a death benefit.  People who need permanent life insurance protection but wish to take advantage of possible cash accumulation via an equity index might use IULs as key-person insurance for business owners, premium financing plans or estate-planning vehicles.  IULs are considered advanced life insurance products in that they can be difficult to adequately explain and understand.  They are generally reserved for sophisticated buyers. 


How Does It Work?


When a premium is paid, a portion pays for annual renewable term insurance based on the life of the insured.  Any fees are paid, and the rest is added to the cash value.  The total amount of cash value is credited with interest based on increases in an equity index (but it is NOT directly invested in the stock market).  Some policies allow the policyholder to select multiple indexes.  IULs usually offer a guaranteed minimum fixed interest rate and a choice of indexes.  Policyholders can decide the percentage allocated to the fixed and indexed accounts.


The value of the selected index is recorded at the beginning of the month and compared to the value at the end of the month.  If the index increases during the month, the interest is added to the cash value.  The index gains are credited back to the policy either on a monthly or annual basis.


For example, if the index gained 6% from the beginning of June to the end of June, the 6% is multiplied by the cash value. The resulting interest is added to the cash value.  Some policies calculate the index gains as the sum of the changes for the period.  Other policies take an average of the daily gains for a month.  If the index goes down instead of up, no interest is credited to the cash account.  The gains from the index are credited to the policy based on a percentage rate, referred to as the "participation rate".  The rate is set by the insurance company.  It can be anywhere from 25% to more than 100%.


For example, if the gain is 6%, the participation rate is 50% and the current cash value total is $10,000, $300 is added to the cash value [(6% x 50%) x $10,000 = $300].  


IUL policies typically credit the index interest to cash accumulations either once a year or once every five years.


What's Good About a IUL Policy?


  1. Low Price: The policyholder bears the risk, so the premiums are low.Cash Value Accumulation:

  2. Amounts credited to the cash value grow tax deferred:  The cash value can pay the insurance premiums, allowing the policyholder to reduce or stop making out-of-pocket premiums payments.

  3. Flexibility: The policyholder controls the amount risked in indexed accounts vs. a fixed account; the death benefit amounts can be adjusted as needed.  Most IUL policies offer a host of optional riders, from death benefit guarantees to no-lapse guarantees.

  4. Death Benefit: This benefit is permanent.

  5. Less Risky: The policy is not directly invested in the stock market, thus reducing risk.

Final Expense Plans

Burial Insurance, also known as Final Expense Life Insurance, is affordable and gives your loved ones peace of mind.  Don't wait another day to make this important decision.  If you are between ages of 50 & 85...please contact us today for your FREE quote.  We work to get you the best price.  We provide all the information you need on Burial Insurance & Final Expense Life Insurance so you can make an informed decision. 

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