Life Insurance 101

Life Insurance 101 with DivacFO. How it's used Depends on... · Make cash available to your family How much do I need? immediately upon your death, Pay any debts you may leave behind (mortgages, car loans, credit card debts), The financial need for the Pay for final expenses and estate taxes, people who depend on you · Leave money to your heirs The Simple Stuff: Term Insurance Your career stage, if you want to protect Term insurance is pretty simple to your earnings understand. Depending on your age, you can buy it to last for 10, 15, 20, 25 and 30 years. Your other assets $$$$ and debt When you are young and healthy it's cheap. And it can generally be converted to permanent insurance (described below) if you need it longer than you originally Your goals thought. This is especially important if your health has declined. Types of Permanent Insurance .. Whole Life Universal Life Variable Life Universal Variable Life As with whole life, you A combination of You generally make level (equal) You may pay premiums pay a level premium for universal and variable life. However, the death at any time, in any life. You may pay premium payments benefit and cash value amount (subject to certain limits), as long premiums at any time, in any amount (subject to limits), as long as policy for life. The death fluctuate depending on benefit and cash as policy expenses and the performance of value are investments in what are the cost of insurance expenses and the cost of predetermined and known as subaccounts. A Coverage are met. The insurance coverage are guaranteed. The subaccount is a pool of amount of insurance met. The amount of policyowner's only investor funds Coverage can be decreased, and the cash insurance coverage can action after professionally managed be decreased, and the purchase of the policy is generally to pursue a stated investment objective. value will earn interest cash value goes up or at a rate that may vary down based on the just to pay the fixed premium. over time. The policyowner selects performance of investments in the the subaccounts in which the cash value should be subaccounts. invested. Life Insurance 101 with DivacFO. How it's used Depends on... · Make cash available to your family How much do I need? immediately upon your death, Pay any debts you may leave behind (mortgages, car loans, credit card debts), The financial need for the Pay for final expenses and estate taxes, people who depend on you · Leave money to your heirs The Simple Stuff: Term Insurance Your career stage, if you want to protect Term insurance is pretty simple to your earnings understand. Depending on your age, you can buy it to last for 10, 15, 20, 25 and 30 years. Your other assets $$$$ and debt When you are young and healthy it's cheap. And it can generally be converted to permanent insurance (described below) if you need it longer than you originally Your goals thought. This is especially important if your health has declined. Types of Permanent Insurance .. Whole Life Universal Life Variable Life Universal Variable Life As with whole life, you A combination of You generally make level (equal) You may pay premiums pay a level premium for universal and variable life. However, the death at any time, in any life. You may pay premium payments benefit and cash value amount (subject to certain limits), as long premiums at any time, in any amount (subject to limits), as long as policy for life. The death fluctuate depending on benefit and cash as policy expenses and the performance of value are investments in what are the cost of insurance expenses and the cost of predetermined and known as subaccounts. A Coverage are met. The insurance coverage are guaranteed. The subaccount is a pool of amount of insurance met. The amount of policyowner's only investor funds Coverage can be decreased, and the cash insurance coverage can action after professionally managed be decreased, and the purchase of the policy is generally to pursue a stated investment objective. value will earn interest cash value goes up or at a rate that may vary down based on the just to pay the fixed premium. over time. The policyowner selects performance of investments in the the subaccounts in which the cash value should be subaccounts. invested.