PROTECT THE ONES YOU LOVE:
GET LIFE INSURANCE!
Top reasons for getting Life Insurance!
Replacing lost wages or income
Paying for burial cost and final expenses
Fast and easy
Transparent explanations of risk
and pricing
No medical exam
Simplified underwriting
Life insurance coverage between $50k-$1.5M
Life insurance is a financial tool that can:
PROTECT families and businesses.
ACCUMULATE cash values in a tax favored way and provide many living benefits.
TRANSFER WEALTH to children or charities.
With over 23 years in business, UFC4Wealth a independent firm specialized in proving insurance and wealth management strategies for families. The carriers that we work with are typically among the highest ranked in the industry by Comdex2.
WHY GET LIFE INSURANCE?
- Life insurance helps to provide for the “what ifs?” of life.
- Life insurance proceeds can help replace income so that a family can maintain their lifestyle or pay for other expenses like education, debts It can also help to protect a business by insuring the owner.
- While not a primary reason to buy life insurance, permanent life insurance can build some cash value – and that cash value grows on a tax-deferred basis, and may provide the policy owner potential tax-favored access to policy cash values.
- Life insurance also provides tax-free death benefit that is generally not available in any other financial product. Life insurance is the only financial product that can produce a known quantity of money at the moment of someone’s death—exactly when it is needed most!
DO I NEED LIFE INSURANCE?
Ask yourself: Will someone suffer financially if I die? If so, you may need life insurance.
WHY GET LIFE INSURANCE?
- Run a financial needs analysis to figure out immediate expenses (funeral costs, mortgage, and other debts, uncovered medical costs, taxes, estate settlement costs, etc.)
- Then calculate ongoing expenses (food, housing, utilities, transportation, health care, clothing, insurance, etc.)
- Finally, determine future expenses (college, retirement, etc.)
- Combine the amounts needed for current and future financial obligations, then subtract spouse’s earnings, savings, investments, and life insurance you already own. The balance = the amount of life insurance needed.
Remember: The cost of life insurance typically increases with age, and one of the biggest mistakes is to underestimate how long you’ll need to be covered.
Generally speaking, there are 2 types of Life Insurance: Term and Permanent
The biggest difference between the 2 are cost, duration and accumulation. Please see the comparison below:
WHAT KIND OF LIFE INSURANCE SHOULD I BUY?
- The two questions to ask are:
- 1. How long will I need to be insured?
- 2. What can I afford to spend?
TERM
Term insurance is the basis of ALL life insurance coverage. It is pure insurance, much like your auto or home insurance. You pay your premium, and if there is a claim it is paid. If there is no claim, the carrier keeps the premium.
Short-term coverage is handled through term insurance: Income replacement, college funding, pay off a mortgage, business coverage like buy/sell and key man. Today’s term durations typically run 10, 15, 20, and 30 years. After the level premium period, premiums increase substantially.
Term does give you flexibility in locking in your insurability for potential conversion opportunities.
Because of the basic coverage of term, the premiums are usually the least expensive of all Life products.
With the changing marketplace there are growing enhancements to many term policies and other riders that provide a disability waiver of premium and child riders.
PERMANENT
When buying permanent life insurance there are generally 4 different types. Your decision will be based on the following factors: cost, risks, and accumulation.
• The original and most classic type of life insurance is Whole Life. It typically carries the strongest guarantees around death benefit and cash values. At the same time, this benefits comes at a premium and it may be the most expensive. Universal Life insurance comes in 3 different flavors: fixed, index and variable.
• Fixed or Guaranteed UL is the most similar to a term policy. It generates little or no accumulation and it can last a specific amount of time; depending on preference, up to age 120.
• Index UL offers the opportunity to grow cash value moderately based on a variety of index strategies that the policies participate in. Clients participate in the gains of the stock market, while having zero risk if the market underperforms in a given year. Because of the limits on losses, these strategies usually have a cap on the gains as well, but it certainly offers a tax deferred growth opportunity inside the insurance policy.
• Variable UL is also an accumulation type of policy, typically for clients looking for the most aggressive growth. Clients can invest in a number of subaccounts, mutual funds, fixed account, and even the same index options of the Index UL policies. Some carriers even offer death benefit guarantees at an additional cost.
WHO WE ARE
UFC is an independent benefits firm and member of M Financial Group. We specialize in the design, installation and administration of retirement, insurance and wealth management strategies for family owned and multinational family corporations as well as the value based needs of the affluent and ultra-affluent.
We work closely with international law firms and other financial service professionals which require access to insurance solutions for cross-border succession and wealth transfer for their clients.
- 1. Facts from LIMRA Life Insurance Awareness Month, September 2020
- 2. A Comdex ranking is a composite score averaging the ratings of the major insurance rating organizations.
- Below are the 5 different rating agencies in the US.
- A.M. Best Co. (www.ambest.com)
- Fitch Ratings(www.fitchratings.com)
- Moody’s Investor Service, Inc. ( www.moodys.com)
- Standard & Poors (www.standardandpoors.com)
- Weiss Ratings (www.weissratings.com)