Life Insurance 101 Financial Independence Group Life Department 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 Indexed Universal Life Whole Life Final Expense/ Guaranteed Issue Single Premium Life Life Insurance 101 Financial Independence Group, Inc.

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

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 Life Insurance 101Financial Independence Group, Inc.

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 Life Insurance 101Financial Independence Group, Inc.

Current Assumption UL Life Insurance 101 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.

2 nd To Die/Survivorship Life Two people on same policy (spouses or business partners) At first person’s death, no payout; at 2 nd 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 Life Insurance 101Financial Independence Group, Inc.

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 Life Insurance 101Financial Independence Group, Inc.

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 Life Insurance 101Financial Independence Group, Inc.

Final Expense/ Guaranteed Issue Burial expense coverage Usually ages 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 Life Insurance 101Financial Independence Group, Inc.

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 Life Insurance 101Financial Independence Group, Inc.

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 Life Insurance 101Financial Independence Group, Inc.

Questions? Illustrations Sales ideas Companies/Products we recommend Life Insurance 101 Call Rochelle Rosa today at Ext. 119 or via Financial Independence Group, Inc.