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Life Insurance 101

Life Insurance 101. Financial Independence Group Life Department 800.527.1155. Financial Independence Group, Inc. Life Insurance 101. Life Products. Term Life Return of Premium Term Guaranteed Universal Life Current Assumption Universal Life 2 nd To Die/Survivorship

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Life Insurance 101

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  1. Life Insurance 101 Financial Independence Group Life Department 800.527.1155 Financial Independence Group, Inc. Life Insurance 101

  2. Life Products • Term Life • Return of Premium Term • Guaranteed Universal Life • Current Assumption Universal Life • 2nd To Die/Survivorship • Indexed Universal Life • Whole Life • Final Expense/ Guaranteed Issue • Single Premium Life Financial Independence Group, Inc. Life Insurance 101

  3. Term Life • Typically lowest cost • ‘Renters’ Life Insurance • No cash value/investment plan • 10,15,20,25,30 + Select-A-Term Plans • Convertibility • Designed for young families, businesses, short-term need • Several carriers available Financial Independence Group, Inc. Life Insurance 101

  4. Return of Premium Term (ROP) • Still term insurance • More expensive than traditional term • If client lives for full length of term, receives 100% of premiums back in a lump sum • Forced savings plan • Bridge between term and permanent • Few carriers offer ROP Financial Independence Group, Inc. Life Insurance 101

  5. Guaranteed Universal Life • Permanent insurance • Provides guaranteed death benefit and level premiums usually to age 100+ • Can build some cash value, but based on a fixed (low) interest rate • Death benefit play versus cash value/income • Great for estate planning and asset repositioning • Competitive marketplace for life carriers Financial Independence Group, Inc. Life Insurance 101

  6. Current Assumption UL • Permanent insurance • Performance is based on a fixed interest rate that can change based on carrier mortality and expense charges • Contracts provide some short-term guarantees • Great permanent insurance option for younger (sub-50) clients • Cash-value play versus Death Benefit • Competitive marketplace for life carriers Financial Independence Group, Inc. Life Insurance 101

  7. 2nd To Die/Survivorship Life • Two people on same policy (spouses or business partners) • At first person’s death, no payout; at 2nd person’s death, full payout • Used for estate planning and business planning primarily • Can cover an uninsurable spouse if primary insured is healthy • Very competitive marketplace Financial Independence Group, Inc. Life Insurance 101

  8. Indexed Universal Life • Cash-value/income play versus DB • Policy interest crediting rate linked to an outside market index, with protection from any downward market loss • Works particularly well in maximum-funded policies – funded up to MEC levels • Great retirement vehicle due to tax-free nature of policy loans • Ultra-competitive marketplace Financial Independence Group, Inc. Life Insurance 101

  9. Whole Life • Original permanent life concept • Participating or Non-participating (dividends) • Becoming somewhat antiquated with introduction of UL/Indexed UL • Great for small face amounts ($5k-$20k) which ULs don’t typically offer • Maximum guarantees (for whole life, even if client lives to be 150) but also very costly Financial Independence Group, Inc. Life Insurance 101

  10. Final Expense/Guaranteed Issue • Burial expense coverage • Usually ages 50-85 only • Can provide life insurance for clients in fair to poor health, or very poor health • Usually max face amounts are $25k-$50k • You get paid quickly on these with very short apps/little work, little or no underwriting • Higher cost, especially on guaranteed issue Financial Independence Group, Inc. Life Insurance 101

  11. Single Premium Life • Excellent senior market planning tool • One lump sum payment buys guaranteed life insurance death benefit • CD/Annuity alternative • Clients who want to pass on as much of their accumulated wealth as possible with maximum tax advantages to heirs Financial Independence Group, Inc. Life Insurance 101

  12. Basic Principles of Life Insurance • Leverage • Income tax free benefit • Wealth transfer • Avoids Probate and associated fees • Cash Accumulation- properly structured life policies allow for tax-deferred cash accumulation AND distribution of tax FREE income Financial Independence Group, Inc. Life Insurance 101

  13. Questions? • Illustrations • Sales ideas • Companies/Products we recommend Call Rochelle Rosa today at 800.527.1155 Ext. 119 or via email: Rochelle.Rosa@figmarketing.com Financial Independence Group, Inc. Life Insurance 101

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