Insurance Made Simple
all its forms life insurance has one core benefit – it pays an
income-tax-free death benefit directly to your beneficiary when you
insurance also gives you options that can reduce taxes immediately,
build tax-advantaged income for retirement and/or provide assets to
offset estate taxes.
two major types of insurance coverage are term insurance and cash
protection for a specific time period
less expensive than cash value, term insurance is similar to renting
a property rather than owning. You pay for it during the term of the
policy (e.g. five, 10, 15 years, etc.) and when the term expires so
does your policy (with no equity).
purchased to cover specific needs (e.g. children until they become
adults, a mortgage until it is paid off, or other short-term
provide coverage for a lifetime while enabling you to potentially
build up cash value. The cash equity you build can be accessed
for emergencies and other needs.
common types of cash value insurance include:
designed for people with a longer investment time horizon as
investment options will fluctuate in value with the market
(similar to the way a mutual fund investment would) and therefore
carries higher risk.
used for estate planning purposes, insuring two lives and paying
the death benefit after the death of the second insured. The fact
that one policy covers two lives often provides premium saving
over two individual policies.
a guaranteed death benefit and guaranteed cash value (albeit at
lower values than you might earn in long-term variable account)
the flexibility of variable universal life, but with a secured
fixed rate of return for investors who prefer less risk
help determine which type of life insurance you need (and how much
you may require) consult with your professional financial advisor
information is provided for informational purposes only.
The information is intended to be generic in nature and
should not be applied or relied upon in any particular situation
without the advice of your tax, legal and/or your financial
advisor. The views
expressed may not be suitable for every situation.
Express Financial Advisors Inc. Member
American Express Company is separate from American Express
Financial Advisors Inc. and is not a broker-dealer.
This communication is published in the United States for residents of
North and South Carolina only; and this advisor is licensed only in
the states of North and South Carolina."
Roy P. Janse
Financial Advisors, Inc.
IDS Life Insurance Company
1150 Haywood Road
Greenville, SC 29615
Phone: (800) 554-0805 x141
Fax: (864) 234-7139