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Life
Insurance - An Vital Tool
Life
insurance is a vital tool that addresses two of the most serious
risks you face: the risk of dying too soon and the risk of living
too long. In either case, life insurance can provide the right
amount of money at just the right time, whether it's furnishing
the cash and income your family will need after your death or
supplementing your own retirement income while you are still living.
Tax-free
death benefit
No
other product will provide such a large, instant cash windfall,
income-tax free*, at the very time it is needed most.
*Tax-free
death benefits - Proceeds from an insurance policy paid because
of death of the insured are generally excludable form the beneficiary's
gross income for tax purposes (IRC Sec. 101(a)(1).) Consult your
tax advisor or attorney on your specific situation.
Benefit
is paid directly and immediately
Your
beneficiary will receive the policy proceeds without the inconvenience
of passing through the probate process.
Choice
of coverages
If
your protection needs are temporary, you may prefer the low initial
cost of term insurance. For protection needs that are permanent,
however you will want to consider a permanent form of life insurance.
You can even choose a combination of permanent and term protection.
Tax-deferred
accumulation**
Earnings
inside a permanent life insurance policy will accumulate free
of current income tax. Taxes are deferred until you receive policy
cash values exceeding the money you paid into the policy. (Unless
the policy is a modified endowment contract.)
**Tax-Deferred
Growth-Income - Income and growth on accumulated cash values has
been held by the Tax Court to be generally taxable upon withdrawal.
(T.H. Cohen, 39 TC 1055 (1963), acq. 1964-1 CB 4 also, IRS. Sec.
72.) Consult your tax advisor or attorney on your specific situation.
Guaranteed
premiums
I
can offer you a participating whole life product that offers you
permanent life insurance protection with a guaranteed lifelong
premium that can never increase.
Liquidity
Permanent
life insurance allows you to obtain money from the policy's available
cash value to meet emergencies or anticipated needs. The money
may be received as a policy loan, which is not taxable. (Unless
the policy is a modified endowment contract.)
Guaranteed
level premiums with guaranteed values
The
premiums on a permanent whole life policy are guaranteed never
to increase. As long as the policy remains in force, you know
exactly what the policy's guaranteed minimum cash values will
be. If you qualify, riders may be
added to your policy with additional premiums. (Not all riders
may be added to all policies.)
A
two-year suicide provision is included in policies (one year in
Colorado and North Dakota). If a policyholder commits suicide
during the first two policy years, only a refund of premiums will
be made (Missouri requires coverage for acts of suicide, unless
it can be proved that the insured intended suicide at the time
the application was completed).
The
foregoing is neither a contract nor an offer to contract, but
is a general description of benefits available under a policy
providing the benefits outlined. The exact provisions, terms and
conditions of the contract are set forth in detail in any such
policy as may be issued.
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