Services & Products

What is Life Insurance? Life insurance is a contract between the insurance company and the insured person. The contract states upon the death of an insured person, the insurance company promises to pay designated beneficiary a sum of money in exchange for a premium.

Types of Life Insurance

Term Insurance

It falls into the complete protection category. It provides pure protection. Basically, term insurance covers the risk of dying. As stated in the policy document in case of the insured's death the insurer promises to pay the beneficiary the stated death benefit. If you are planning to buy pure life risk coverage, then term insurance is the best and cheapest form of policies.

There's a choice to add riders to widen up the coverage. The death benefit is payable as lump sum, monthly payouts, or a combination of both.

When it comes to term insurance, you should keep in mind that there will be no payout if the insured survives. However, nowadays there are many companies that provide Term Plans with Return of Premium under which the insured gets all the premium back in case the insured outlives the term period. But, such plans can be expensive as compared to the basic term insurance plan.

Features of Term Insurance

1. Most Affordable:  Compared to other insurance plans term insurance is the cheapest form of life insurance.
2. Pure protection plan: It is basically designed to offer coverage to the insured family to deal with unexpected circumstances.
3. No investment option: Term insurance provide a death benefit with no investment options.
4. More coverage for low premium : Term insurance offers more death benefits at a low premium.
5. Flexible premium payments: Consumers can choose from a wide range of premium payments options.
6. Coverage for a specific period: Coverage is provided for a specific period only.
7. Risk management: Assist the insured family in meeting all debt and liabilities.
8. Riders: You can buy numerous additional riders such as critical benefit rider, accidental death benefit, and disability.
9. Variants: Numerous insurers offer term insurance plans with variants that includes level death benefit, increasing death benefit and decreasing death benefit.
10. No maturity benefits: In most of the term insurance plan, there are no maturity benefits in that if a policyholder survives, he or she doesn't get any maturity benefits.

Benefits of Term Insurance

1. Provides financial security to your family in your absence
2. Higher death benefit at the lowest premium
3. Some carriers offer term insurance online
4. Term insurance is the best alternative for temporary life insurance needs

Why should someone invest in term insurance?

1. For the security for your family
2. If you are the sole breadwinner in the family
3. If you have dependents - parents, spouse, etc.
4. If you are a single person who is planning to start a family
5. If you are running a business or a startup
6. If you have children and wish to secure their future even in case of your absence

Those who do not want their family to suffer for their daily needs should definitely give a gift of love to their family and there is nothing better than a term insurance plan. Term insurance will not only protect your family but will also safeguard them against several unwanted emergencies.

Whole Life insurance

Whole life insurance is a permanent policy, which gives you guaranteed protection for your loved ones that lasts a lifetime.  As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy owner beneficiaries when the insured dies. Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance where the premium is fixed only for a limited term. Whole life premiums are fixed, based on the age of issue, and usually do not increase with age. The insured party normally pays premiums until death, except for limited pay policies which may be paid up in 10 years, 20 years, or at age 65. Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies. 

Features Whole Life:

The primary advantage of whole life insurance are protection for life. With a properly designed whole life insurance policy, you get: 

1. Principal protection of your money.Your cash value isn't subject to market losses, as it is with mutual funds and other programs. When the stock market tanks you won't lose a dime.
2. Growth of your money every year. This will be interest-rate-driven based on the economy, but your account will move forward every year regardless of what the market does.
3. Dividends paid to policy owners are not taxable. Dividends aren't guaranteed, but many reputable life insurance companies have been in business for more than 100 years and they've paid out dividends every year. Those dividends are not taxable.
4. Access to your cash value at any age, at any time, for any reason. Without taxes or penalty. This is a huge benefit of whole life policies compared to 401(k)s and IRAs, which impose multiple obstacles if you want to access your cash before retirement. No such obstacles exist with a whole-life policy.
5. The ability to use your account's cash value. If you treat this pool of money inside the life insurance policy like your own personal bank, you can loan it out to yourself and others to create wealth.
6. Guaranteed insurance. Once the policy is in place, your insurance is guaranteed for the rest of your life. Many people assume they'll be able to buy new insurance at any point in their life. But nothing is further from the truth -- especially for those who've been diagnosed with chronic or terminal diseases. If you become seriously ill, don't expect to be able to buy a new policy.

   With many whole-life policies, there is an "accelerated death benefit rider" built into the policy or can be added for little or no cost, which will give you access to a large portion of your death benefit during your lifetime if you have a terminal or chronic illness. 

7. Your dependents will get benefits. The return that your family will get will be a strong financial benefit. This plan is great when it comes to estate planning. Individuals who want to pass on their estate to their legal heirs as it helps create wealth. There's a reason family dynasties have been using life insurance for generations to grow and protect their wealth. Even when subject to estate limits, these death payouts go a long way toward promoting the tax-free, inter-generational transfer of wealth.

Difference Between Term plan and Whole Life Insurance

Premiums: Term insurance is to be paid for a specific period whereas for whole life insurance policy the payment is to be paid for life.

Maturity age:  Most term policies cover to the age of 65 or 75 years whereas for whole life insurance the policyholder is covered for the entire life.

Cash value: There is no cash value in term insurance whereas for the whole life policy there is a guaranteed  and non-guaranteed cash value plus dividends.

Policy term: The tenure of the policy varies from five to thirty years whereas for the whole life plan the policy is valid for the lifetime.

Paid up value:  If the policyholder wants to surrender the policy there is no paid up value in term insurance, whereas whole life insurance can be paid up after a specified number of years.

Lapse: The term policy lapses after thirty-one days of a missed premium payment. In the case of whole life policy if the policyholder fails to make payment then a cash value is allowed to offset the premiums.

Of course, insurance company policies and riders will vary by state due to state regulations and depending on the actual insurance carrier. But you won't find another type of account or investment that has all these benefits.

Why Buy a Child Plan?

Child insurance plans allow you to invest based on your child's education needs, your current financial status, and other monetary goals.

Who can take Child Life Insurance?

Anyone who wants to secure his child's future can invest in this plan. You can also take this plan if you wish to secure major event of your child's life such as higher education, marriage, etc. In case you died then this pan will not allow your child to suffer financially and will make sure that he/she is receiving the best.

How a child insurance plan will secure your child's future?

1. Offers financial security during the most vital stages of your child's life
2. Provide a perfect mixture of investment and savings in a single plan
3. Safeguards child's future, even after demise of the parent
4. Long term savings, that usually becomes a challenge

Individual disability insurance - is a type of insurance that will provide income in the event a worker is unable to perform their work due to disability. Premiums and available benefits for individual coverage vary considerably between companies, occupations and states. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim.

Business overhead expense disability insurance - Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

Long-term care insurance - is an insurance product that helps pay for the costs associated with long-term care. Long-term care insurance will cover care generally not covered by health insurance, Medicare, or Medicaid. Individuals who require long-term care are generally not sick in the traditional sense but are unable to perform two of the six activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.

Age is not a determining factor in needing long-term care. About 70 percent of individuals over 65 will require at least some type of long-term care services during their lifetime. About 40% of those receiving long-term care today are between the age of 18 and 64. Once a change of health occurs, long-term care insurance may not be available.

Long-term care is an issue because people are living longer. As people age, many times they need help with everyday activities of daily living or require supervision due to severe cognitive impairment. That impacts women even more since they often live longer than men and, by default, become caregivers to others.

The Benefits of Long-Term Care Insurance
1. Preserve savings and assets for family and friends
2. Help maintain one's financial independence from family and friends
3. Eliminate the need to borrow money for long-term care costs.

What is an Annuity

An annuity pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees. Annuities are created and sold by financial institutions, which accept and invest funds from individuals and then, upon annuitization, issue a stream of payments at a later point in time. The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase.

Breaking Down Annuity

Annuities were designed to be a reliable means of securing a steady cash flow for an individual during their retirement years and to alleviate fears of longevity risk, or outliving one's assets. Annuities can also be created to turn a substantial lump sum into a steady cash flow, such as for winners of large cash settlements from a lawsuit or from winning the lottery. Defined benefit pensions and Social Security are two examples of lifetime guaranteed annuities that pay retirees a steady cash flow until they pass.

Annuity Types

Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon annuitization, payments will continue so long as either the annuitant or their spouse (if survivorship benefit is elected) is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives. Furthermore, annuities can begin immediately upon deposit of a lump sum, or they can be structured as deferred benefits. Annuities can be structured generally as either fixed or variable. Fixed annuities provide regular periodic payments to the annuitant. Variable annuities allow the owner to receive greater future cash flows if investments of the annuity fund do well and smaller payments if its investments do poorly. This provides for a less stable cash flow than a fixed annuity, but allows the annuitant to reap the benefits of strong returns from their fund's investments.

One criticism of annuities is that they are illiquid. Deposits into annuity contracts are typically locked up for a period of time, known as the surrender period, where the annuitant would incur a penalty if all or part of that money were touched. These surrender periods can last anywhere from two to more than 10 years, depending on the particular product. Surrender fees can start out at 10% or more and the penalty typically declines annually over the surrender period.

While variable annuities carry some market risk and the potential to lose principal, riders and features can be added to annuity contracts (usually for some extra cost) which allow them to function as hybrid fixed-variable annuities. Contract owners can benefit from upside portfolio potential while enjoying the protection of a guaranteed lifetime minimum withdrawal benefit if the portfolio drops in value. Other riders may be purchased to add a death benefit to the contract or accelerate payouts if the annuity holder is diagnosed with a terminal illness. Cost of living riders are common to adjust the annual base cash flows for inflation based on changes in the CPI.