Personal Life Insurance

We offer life insurance from many different insurance companies that are rated "A" or better by BEST. Through these companies, we offer participating whole life, universal life, indexed universal life, joint first-to-die whole life, joint second-to-die whole life and level term insurance for up to 30 years.

One very important part of life insurance policy is the beneficiary, for that is what life insurance is all about. Many people are most concerned about the premium but what is life insurance for, but to provide money in the event of early death to loved ones. Many time a spouse is the primary beneficiary with the children as contingent beneficiaries.  But what happens when the primary beneficiary dies very soon (a matter of minutes) after the insured. The funds do not go to the contingent beneficiaries, funds pass to the estate to be passed by will if there is one otherwise by state intestate laws.  This may cause the funds to be subject to various taxes and legal fees. Arranging the beneficiaries to possibly avoid these problems is most important. This may be more important than the premium.

There are other uses for life insurance except for term insurance such as funds for college, emergency funds and retirement funds. When you take cash from an insurance policy all premiums paid are received as non-reportable income, and any loans are the same.  For loans there are no qualifications requirements.

 

An area of concern is that if the funds taken from the policy are greater than the premiums paid and the policy terminates before death the gain is taxable as ordinary income tax.