| eNrollment Technologies is very
active in the group and individual Life insurance
marketplace. Whether you are investigating Life
insurance for a group plan for a small start up, or a
5000 employee multistate corporate group plan,
our firm is capable and prepared to assist you. We can
help you evaluate your needs, and then help you
implement an enrollment solution that you determine
best meets your objectives. You need life insurance
if anyone depends on your lost income. It solves many
problems in both personal and business
situations. |
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| Term Insurance |
| It provides protection for a
specified period of time, typically from one to 30
years. It pays a death benefit only if you die during
this term. Some policies can be automatically renewed
at the end of the coverage period, and some can be
converted to permanent insurance without need for a
medical exam. |
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-- Advantages of term policies
include:
More insurance for less money because premiums are
lower than those for permanent insurance, and you can
afford to buy more coverage when you need it the most.
Specified periods of coverage make term insurance
ideal for covering specific short-term financial needs
such as a college education or a mortgage loan. |
| |
-- Disadvantages of term policies
include:
Premiums increase at each policy renewal date,
becoming very expensive later in life.
There is no savings feature (cash value), only a death
benefit if you die while the policy is in force.
You could outlive your coverage, because term
insurance is generally not renewable after age 70 or
75. State laws vary on this issue, so you should check
with your state department of insurance. |
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| Permanent Insurance |
It provides lifelong protection as
long as you continue to pay premiums. The premiums are
based on your age at the time of purchase and
generally remain level; they do not increase with
age.
Because premiums remain level, permanent insurance is
more expensive than term insurance. But permanent
insurance accumulates cash value, which may be
refundable upon surrender of the policy. While the
policy is in force, cash values can be borrowed
against or used to pay premiums. |
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| There are four basic types of
permanent Insurance: |
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1. Whole Life (sometimes also
called life or ordinary life) has a fixed guaranteed
instant rate and develops guaranteed cash values.
2. Universal Life has more flexibility. Within
certain limits, you can change the death benefit, the
amount of premium and payment frequency. Unlike Whole
Life, this is an "interest driven" policy, which
normally pays a minimum guaranteed interest of 4% to
4.5%. If the interest rates are continuously low,
additional premiums may have to be paid to avoid a
lapse of coverage.
3. Variable Life has death benefits and cash
values that vary with the performance of an underlying
portfolio of investments that you select. The death
benefit and cash value are not guaranteed. They can go
down as well as up, although there may be a guaranteed
minimum death benefit.
4. Variable Universal combines the premium and
death benefit flexibility of universal life with the
investment flexibility and risk of variable life. |
| |
| Key things you should know about
life insurance: |
- Life insurance proceeds are generally income tax
free.
|
- The proceeds of many permanent life insurance
policies can be used to ease the financial burden of
catastrophic illness, terminal illness or long-term
care. These "accelerated benefits" may be offered as
part of the basic policy or as a rider to an
existing policy.
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- As the holder of a permanent life insurance
policy, you may borrow up to the cash value at an
interest rate (fixed or adjustable) stated in the
policy. Any unpaid interest is added to the loan.
Any unpaid loan, including interest, will be
deducted from the death benefit.
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- The cash value can be used to pay premiums for a
period of time, keeping the stated death benefit, or
it can be used to purchase paid-up insurance in a
lesser amount with no further premiums due.
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- In addition to naming a specific beneficiary to
receive the proceeds of your life insurance policy
(permanent or term), you should name a secondary or
"contingent" beneficiary just in case you outlive
the first beneficiary. If there is no living
beneficiary, the proceeds will be paid to your
estate and have to go through probate proceedings,
resulting in a possible delay before your family
receives the money. If the proceeds go into the
estate, these proceeds may be subject to estate
taxes.
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- On all of the above policies, riders are
available at an additional cost to cover: disability
waiver of premium, double indemnity for accidental
death, guaranteed purchase options, as well as
spouse and child riders.
|
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| For more information on life
insurance, you can access the
Life and Health Foundation for Education or the
American Council of Life Insurance. |
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