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Understanding Life Insurance in Plain English

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CONTENTST A B L E O F9COST VS VALUE10EMPLOYER SPONSORED12WHO'S WHOagents, producers, brokers, financial advisors 1 3FINAL THOUGHTS3THE BASICSterm, perm, gul, vul, iul, whole life

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80% OF OUR CLIENTS HAVEUNDERESTIMATED THE LENGTHOF TIME THEY EXPECTED TONEED INSURANCE. THE BASICSinfo@guideINS.comLife insurance can confuse even the savviest folks.That's why we created this guide. We hope it helps youunderstand basic concepts so you can make informeddecisions about your own life insurance coverage.The number one rule in purchasing life insurance is tobe sure you have enough coverage for your needs.That changes over time. Your needs at age 30 arelikely to be very different than at age 60. Life eventschange the amount of insurance you need. As yourincome changes, your family's need for income is likelyto change. The birth of a child, children leaving home,buying and selling homes - are all events that havefinancial consequences that can alter your insuranceneeds. Knowing that you have enough insurance to keep yourpromises to loved ones can give you peace of mind.All other buying decisions, like the choice of insurancecompany and type of plan, are secondary. Your familyjust wants to know there's enough.

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info@guideINS.comNo matter the product, variations exist from company to company. To differentiate theirproducts, companies offer many different riders or features that are often optional andusually available at additional cost. Some policies may be converted to permanentinsurance. Some may have living benefits for the insured to use before death. Some maywaive premiums if the insured is disabled and unable to work and so on. These factors arepart of the reason prices between companies differ. Additionally, each company handlesits expenses and underwriting policies differently which also impacts pricing.All insurers want to know about your health. How they evaluate your health - the processof evaluation is called "underwriting" - also varies. This is where consumers can benefitfrom working with a knowledgeable professional who knows the company differences andcan guide you to your best option. There is no cost for you to work with an insuranceprofessional because he/she is paid by the insurance company. TIP: MANY TERM POLICIES ALLOW YOUTO CONVERT A TERM POLICY TOPERMANENT COVERAGE EVEN IFYOUR HEALTH CHANGES IN A WAYTHAT WOULD OTHERWISE MAKE YOUINELIGIBLE FOR PERMANENTCOVERAGE. THIS CAN BE A VERYIMPORTANT FEATURE ESPECIALLYSINCE WE CANNOT FORESEE WHATLIFE HOLDS 10 OR 20 YEARS IN THEFUTURE. COMPANIES THAT OFFERONLY TERM INSURANCE MAYSEEMINGLY BE THE LEAST EXPENSIVESO BE SURE TO DISCUSS CONVERSIONPRIVILEGES WITH YOUR INSURANCEADVISOR.

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info@guideINS.comTerm is designed to last for a finite number ofyears. 10-year term insurance is designed to lastfor a term of 10 years. 20-year term lasts for 20years and so on, even up to 30 and 40 years.Most term policies have a level premium - thepremium doesn't change for the specified term. 'Some policies have a rising premium, startinglower than level term and overtime exceedingthe level premium. There is no cash value interm insurance. You are paying only forinsurance. If you only need coverage for alimited time, then term insurance may be a fineoption for youTERM ISTEMPORARYPermanent insurance is designed to last for yourwhole life. Whole Life is only one type ofpermanent insurance. There are other types aswell. When differentiating between perm andterm, you may have heard the analogy made tohomeownership vs home rental. Term insuranceis like renting your coverage because at the endof the term you have not accrued any equity,while permanent insurance will ensure that nomatter when you die, a benefit will be paid. A RECENT STUDY ESTIMATES THAT STAY-AT-HOME MOMS WORK ON AN AVERAGE OF 94HOURS A WEEK WITH AN EQUIVALENTSALARY OF $113,000. -TAX ACT

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PERMANENT COVERAGE UNIVERSAL UL GUARANTEED UNIVERSAL GUL These policies have some cash accumulation but the cash component is primarily a way to defray the cost of insurance within the policy at older ages UL and GUL are often described as permanent term a seeming contradiction in terms They are priced like term but are designed to last a lifetime Properly configured the policy owner can be assured there will be a death benefit no matter when death occurs Universal policies are flexible in that they can be designed to provide coverage to age 90 100 or even 120 By paying more premium early on a policy can be configured for payments to end years before coverage ends Universal policies are interest sensitive The cash accumulation supporting the premium will grow depending on the interest earned Insurance professionals have latitude when providing an illustration insurance speak for a quote TIP ALWAYS KNOW THE DIFFERENCE BETWEEN PROJECTIONS BASED ON ASSUMPTIONS AND GUARANTEES GUARANTEED VALUES ARE BASED UPON INTEREST AT 0 AND THE HIGHEST ALLOWABLE CHARGES FOR MORTALITY COSTS UNDER THAT SPECIFIC POLICY ALSO KNOW WHAT CIRCUMSTANCES COULD VOID ANY GUARANTEES info guideINS com

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PERMANENT COVERAGE VARIABLE UNIVERSAL LIFE VUL INDEXED UNIVERSAL LIFE IUL VUL was first conceived as the answer to Indexed Universal Life is another product Difference VUL differs from UL or GUL in to a sophisticated buyer who understands the advice Buy Term and Invest the that premium over the cost of insurance and expenses goes into client directed separate accounts The Separate Ac that accumulates cash and may appeal how index funds work They are relatively new only first being offered in 1997 counts are analogous to mutual funds The cash accumulation account in these icy they grow tax deferred unlike mutual selected index but is not in actuality Since these accounts are within the polfunds Every company has a range of available accounts like money market small cap large cap growth value etc The values in the separate accounts are policies mimics the performance of a invested in the index fund While the associated index may go through the roof the growth in the policy will be capped by a predetermined percent not capped nor are they guaranteed As In addition the premium payments are keeps increasing and if the separate guaranteed Typically the policy owner can the insured ages the cost of insurance accounts are not growing sufficiently the policy could lapse It is the responsibility of the policy owner to ensure the policy is not underfunded and the allocation is in keeping with the client s risk tolerance TIP IF YOU ARE LOOKING FOR GUARANTEES VUL IS NOT A PRODUCT FOR YOU IT IS IMPERATIVE THAT POLICY OWNERS MEET REGULARLY WITH THEIR INSURANCE PROFESSIONAL TO MONITOR AND ENSURE VIABILITY info guideINS com flexible which also means they may not be choose between several index funds to tie performance However the performance will never equal that of the actual index as there are caps on the returns

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The chart below compares the generic features of three different types of Universal Life Insurance Each insurance company may offer additional features such as joint coverage chronic health care or long term care benefits paid up features and more When looking at quotes illustrations be sure you understand the difference between what is guaranteed and what are current assumptions VUL IS AN INSURANCE AND INVESTMENT PRODUCT AND CAN ONLY BE OFFERED BY A REGISTERED REPRESENTATIVE info guideINS com

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The calculator below will give you an estimate of how much insurance your loved ones may need should you die during your working years For guidance regarding the best type of insurance and a more thorough needs analysis speak with a qualified insurance professional info guideINS com

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PERMANENT COVERAGE WHOLE LIFE Whole Life is another form of permanent Dividends are the hallmark of this type of last for your whole life What makes it guaranteed However most of the better insurance By definition it is designed to different from the other types of perm anent insurance is that its components are fixed at issue to guarantee the death benefit for your entire life The tradeoff is greater guarantees for more upfront premiums But while whole policy They fluctuate and they are not companies have paid dividends consistently over many decades even during serious recessions You can allocate dividends to suit your own needs life looks like it costs more going in over Keeping them in the policy to grow the grow The dividends reduce the net cost of Reducing out of pocket premium time these policies produce dividends that whole life over the long run And the dividends accumulate income tax free in a cash account that you can access death benefit AND the cash value payments Cash payments during your life They are valuable and This is an asset with strong guarantees performing conservatively similar to a producing unfailing dividends flexible you can think bond fund INSURANCE CHOICES CAN BE CONFUSING THERE IS NO ONE RIGHT SOLUTION FOR EVERYONE CONTACT ME TO HELP YOU DECIDE WHICH TYPE OF POLICY IS BEST FOR YOU info guideINS com of them as Look for a company with a history of

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COST or VALUE LIFE INSURANCE PROVIDES SOLUTIONS INCOME FOR SURVIVORS MORTGAGE INSURANCE While life insurance was initially conceived as a way to protect the widows and orphans in case the breadwinner died over the years it has developed into a multifunctional financial tool because of its unique attributes Life insurance proceeds are not subject to income tax Cash accumulation within a policy TAX EFFICIENT TRANSFER OF WEALTH FINAL EXPENSES ESTATE EQUALIZATION SUPPLEMENTAL RETIREMENT INCOME PAY ESTATE TAXES FUND BUY SELL AGREEMENTS EXECUTIVE DEFERRED COMP GOLDEN HANDCUFFS grows tax deferred Life insurance can be the solution implemented for each need on the list to the right The appropriate type is totally dependent stances upon individual circum A MAN WHO DIES WITHOUT ADEQUATE LIFE INSURANCE SHOULD HAVE TO COME BACK AND SEE THE MESS HE CREATED WILL ROGERS info guideINS com

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CONTACT ME FOR A COMPARISION OFEACH TYPE OF COVERAGE WITH EASY TOUNDERSTAND EXPLANATIONS.INSURANCE CHOICES CAN BECONFUSING. THERE IS NO ONERIGHT SOLUTION FOR insurance is a con-venience for many. However, the cost is notnecessarily less than private insuranceespecially if you are eligible for preferredrates. This is because during periods ofopen enrollment everyone is eligible to getcoverage regardless of their health. Sincesome employees may not be as healthyas others the rates are adjusted or“blended” to accommodate the range. There also may be a limit as to how muchcoverage you can purchase.Human Resource professionals may beable to explain the coverage, but they arenot licensed insurance professionals andcannot advise employees or makeindividual recommendationsEMPLOYER SPONSOREDGROUP INSURANCE

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info@guideINS.comCONTACT ME TO DETERMINE IF THERE MAYBE A LESS EXPENSIVE OPTIONS FOR YOU.IF Y O U ARE I N E XCEL L ENT HE A LTH,YO U MA Y QU ALIF Y FO R IN D IVID U ALCO V ERAG E AT A LOWE R RATE .If you are considering group coverage, besure to know if you can keep the coverageif you leave the company or retire. You willalso need to know how your premium willbe affected when you no longer work forthe company.A change in health or age could precludeyou from getting private coverage at anaffordable price or might prevent you fromgetting it at all.Buying on the internet is strictly for thoseinterested in term insurance. It is easy andconvenient, but you will not get the adviceof a personal professional.EMPLOYER SPONSOREDGROUP COVERAGE (con't)

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info@guideINS.comDECISIONSSome agents are independent and mayrepresent different companies. CareerAgents have a primary association withone insurance company, however, theymay offer insurance from other comp-anies in accordance with their employ-ment agreement. It’s not hard to find a way to purchase lifeinsurance. It can be bought from an insur-ance agency, an investment brokeragecompany, fraternal organizations, throughan employer, an independent insuranceprofessional or online. People who sell life insurance hold a“Producer” license which is different from a"Broker" license. All life insurance agentsare producers. WHO'S WHO? Captive Agents are associated with aprimary insurance company but are notallowed to work with any other insurer. Most large investment brokerage firmsrequire investment advisors to hold aproducer’s license. Usually, advisors inthese firms concentrate on investmentand rely on an internal insurancespecialist to guide them through matterspertaining to insurance.

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info@guideINS.comCONTACT ME FOR A COMPLIMENTARYAND NO OBLIGATION OF YOURINSURANCESIN S URAN C E C H OICE S CA N B ECO N FUSI N G . THE R E IS N O ONERI G HT S OLUT I ON F OR EVER Y -ON EFINAL THOUGHTSSHOPPING FOR RATESBecause life insurance rates are filed witheach state’s department of insurance,shopping for life insurance based on priceis a waste of time and can only lead toconfusion. If you find differences in quotesfor the same amount of coverage from thesame company, the policies cannot be thesame. There have to be differences in theplan design for which you may not beaware. Producers do not have the ability to“make deals”. They DO have the ability totailor the coverage to your needs withincertain parameters.Instead of shopping for a rate, shop for aninsurance professional you can trust whowill do the shopping for you according toyour budget, needs and values.

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I can think of no more effective an agent in advancing our freedom to live as we choose than the insurance salesperson for he walks all streets of American life and he sits down and talks to youth and to the mature and to the aged He knows their wants He helps them to help themselves in times of need He builds for he helps others to build He insures the future He is respected And he is a friend John F Kennedy click images to view our other guides Contact Us send CLICK TO  SHARE