QUIT Why Buy Life Insurance? Term Life Permanent Life
Life Insurance  <ul><li>A quick and cost effective way to protect your family’s way of life if you die. </li></ul><ul><li>...
Term Life <ul><li>10-Year, 20-Year and 30-Year Term </li></ul><ul><li>Best suited for those who have the greatest need for...
Term Life <ul><li>Advantages: </li></ul><ul><li>Provides death benefit for the least amount of money initially. </li></ul>...
Term Life Advantages <ul><li>Advantages (cont’d): </li></ul><ul><li>Can be converted to permanent insurance within first 1...
Term Life <ul><li>Disadvantages: </li></ul><ul><li>Not the best choice if need for life insurance is longer than policy te...
Permanent Life  (Whole and Universal) <ul><li>Permanent life insurance is a good choice for individuals, families or busin...
Permanent Life <ul><li>Advantages: </li></ul><ul><li>Premiums are guaranteed not to increase. </li></ul><ul><li>Increasing...
Permanent Life <ul><li>Disadvantages: </li></ul><ul><li>Higher initial cost than term insurance. </li></ul><ul><li>Does no...
Whole Life <ul><li>Advantages: </li></ul><ul><li>Guaranteed cash value, plus non-guaranteed dividends. </li></ul><ul><li>D...
Executive Whole Life <ul><li>Lower premiums compared to some other permanent policies, but premiums are required for a lon...
20-Pay Life  <ul><li>After making 20 equal payments, policy is paid up. </li></ul><ul><li>Shorter length of time to pay pr...
Life Paid Up at 65   <ul><li>Helps to plan for retirement because protection is permanent but requires no further payments...
Single Premium Whole Life  <ul><li>Make one lump-sum payment and have a paid-up policy. The policy continues to increase i...
Universal Life <ul><li>Advantages: </li></ul><ul><li>Can adjust the amount of life insurance protection to keep pace with ...
Flexible Premium Universal Life Insurance   <ul><li>Advantages: </li></ul><ul><li>Security of principal rather than riskie...
Variable Universal Life  <ul><li>Advantages: </li></ul><ul><li>For policy owners who have more tolerance for investment ri...
Survivorship Universal Life   <ul><li>Advantages: </li></ul><ul><li>Insures two lives, but only pays at the second death (...
<ul><li>This presentation highlights the life insurance policies issued by COUNTRY Life Insurance Company ®  or COUNTRY In...
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Life

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Life

  1. 1. QUIT Why Buy Life Insurance? Term Life Permanent Life
  2. 2. Life Insurance <ul><li>A quick and cost effective way to protect your family’s way of life if you die. </li></ul><ul><li>Can be used to cover last expenses, such as funerals and debts, to protect your heirs’ estate. </li></ul><ul><li>Can be used to pay off mortgage or other debts allowing a family to maintain their lifestyle. </li></ul><ul><li>Can be used to replace Social Security benefits that are lost when one spouse dies. </li></ul><ul><li>Can provide an immediate estate. You don’t have to wait years for savings and investments to build up. </li></ul><ul><li>Death benefit is generally tax-free. </li></ul><ul><li>Benefits generally avoid probate, so cash is available immediately when the insured dies. </li></ul><ul><li>Offers lower rates for healthy people and non-tobacco users. </li></ul>HOME QUIT Why Buy Life Insurance? Term Life Permanent Life
  3. 3. Term Life <ul><li>10-Year, 20-Year and 30-Year Term </li></ul><ul><li>Best suited for those who have the greatest need for life insurance benefits at the lowest cost. Often purchased by younger individuals and families just starting out. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  4. 4. Term Life <ul><li>Advantages: </li></ul><ul><li>Provides death benefit for the least amount of money initially. </li></ul><ul><li>Good choice for those who want protection for a certain amount of time or for a specific purpose. Choice of plan depends on the length of protection needed: </li></ul><ul><ul><li>20-Year and 30-Year Term are good for those with very young children, or those with longer-term mortgages. </li></ul></ul><ul><ul><li>10-Year Term is good for those with older children at home, or shorter-term mortgages. </li></ul></ul><ul><li>Policy is fully guaranteed — guaranteed premiums during the initial term, guaranteed death benefit and guaranteed renewable. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  5. 5. Term Life Advantages <ul><li>Advantages (cont’d): </li></ul><ul><li>Can be converted to permanent insurance within first 10 years and before age 65. </li></ul><ul><li>Provides a measure of guaranteed insurability, even though premium is high at older ages. </li></ul><ul><ul><li>After the initial guarantee period, the policy converts to an annually renewable term policy, which is guaranteed renewable regardless of state of health. </li></ul></ul><ul><li>Can add term insurance protection to policy on the lives of children. </li></ul><ul><li>An option is available for purchase in some states that returns your premium payments at the end of the policy period. See your agent for complete details. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  6. 6. Term Life <ul><li>Disadvantages: </li></ul><ul><li>Not the best choice if need for life insurance is longer than policy term. </li></ul><ul><li>Premium increases dramatically after original policy term. </li></ul><ul><li>No accumulating cash values for loans or emergencies. </li></ul><ul><li>No flexibility in premium payments. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  7. 7. Permanent Life (Whole and Universal) <ul><li>Permanent life insurance is a good choice for individuals, families or business owners interested in the best value over the long term. While term insurance is like “renting” your home, permanent life is like having a mortgage. Over time, you are building equity in the policy (cash values) in addition to the immediate death benefit. </li></ul>Executive W.L. 20 Pay Life Life Paid Up at 65 Single Premium W.L. Flexible Premium U.L. Variable U.L. Survivorship U.L. Whole Life Universal Life Why Buy Life Insurance? Term Life Permanent Life
  8. 8. Permanent Life <ul><li>Advantages: </li></ul><ul><li>Premiums are guaranteed not to increase. </li></ul><ul><li>Increasing cash values grow tax-deferred. </li></ul><ul><li>Cash value can be borrowed as a source of emergency funds. </li></ul><ul><li>People lose their group term insurance at retirement; permanent life insurance stays with them. </li></ul><ul><li>Life insurance death benefits can be used to supplement pension benefits for the retired beneficiary. </li></ul><ul><li>Offers guaranteed insurability option that allows insured to buy more insurance regardless of future state of health. Good benefit for children’s policies. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  9. 9. Permanent Life <ul><li>Disadvantages: </li></ul><ul><li>Higher initial cost than term insurance. </li></ul><ul><li>Does not take advantage of high market conditions. </li></ul><ul><li>Policy loans will decrease the cash value and face amount of the policy. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  10. 10. Whole Life <ul><li>Advantages: </li></ul><ul><li>Guaranteed cash value, plus non-guaranteed dividends. </li></ul><ul><li>Does not require on-going monitoring of investment choices. </li></ul><ul><li>The difference in permanent life insurance plans is primarily the length of time you pay premiums. </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Little flexibility in the amount of premium payments. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  11. 11. Executive Whole Life <ul><li>Lower premiums compared to some other permanent policies, but premiums are required for a longer period. </li></ul>A good choice for those wanting permanent protection and a lower cost over a longer period of time compared to other whole life policies. Why Buy Life Insurance? Term Life Permanent Life
  12. 12. 20-Pay Life <ul><li>After making 20 equal payments, policy is paid up. </li></ul><ul><li>Shorter length of time to pay premiums as compared to Executive Whole Life. </li></ul><ul><li>Good way to give paid-up policy to grandchildren or to kids when they leave home. </li></ul><ul><li>45-year-old or younger can have permanent protection, but make no further payments during retirement years. </li></ul>The best choice for those wanting to fully pay for a permanent policy within a fixed time period. Why Buy Life Insurance? Term Life Permanent Life
  13. 13. Life Paid Up at 65 <ul><li>Helps to plan for retirement because protection is permanent but requires no further payments after age 65. </li></ul>The best choice for those wanting to be done paying for permanent life insurance by the time they are 65 and retired. Why Buy Life Insurance? Term Life Permanent Life
  14. 14. Single Premium Whole Life <ul><li>Make one lump-sum payment and have a paid-up policy. The policy continues to increase in value over time, but you generally pay no income tax on the accumulating cash value. </li></ul><ul><li>Excellent policy to transfer money to the next generation. Use a portion of your assets for life insurance to leave a much greater amount to your heirs. </li></ul>A good choice for those who need a permanent policy as part of their estate plan. Why Buy Life Insurance? Term Life Permanent Life
  15. 15. Universal Life <ul><li>Advantages: </li></ul><ul><li>Can adjust the amount of life insurance protection to keep pace with lifestyle changes. </li></ul><ul><li>Can change the amount and frequency of premium payments to increase or decrease the cash values or coverage. </li></ul><ul><li>People with middle to upper incomes who are concerned about how their excess income is invested appreciate Universal Life. </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Policy can lapse if premium payments are not sufficient. </li></ul>Because of its flexibility, Universal Life is a good choice for individuals or families who anticipate changing needs or uncertain life events in the future. <ul><li>Interest rate applied to cash value can vary more than with Whole Life policies. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  16. 16. Flexible Premium Universal Life Insurance <ul><li>Advantages: </li></ul><ul><li>Security of principal rather than riskier investment options. </li></ul><ul><li>Policy contains a five-year no-lapse guarantee, as long as minimum premiums are paid. </li></ul><ul><li>Can add optional Termination Protection Rider to prevent policy lapse. We’ll monitor policy to make sure premiums are sufficient to meet specified tests. </li></ul><ul><li>Guaranteed minimum interest rate, so the principal is protected. </li></ul>Good for those wanting the flexibility of Universal Life, but more stable dividends than a variable policy. Why Buy Life Insurance? Term Life Permanent Life
  17. 17. Variable Universal Life <ul><li>Advantages: </li></ul><ul><li>For policy owners who have more tolerance for investment risk. </li></ul><ul><li>Long-range potential for greater growth than Universal Life. </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Potential loss of principal in adverse market conditions. </li></ul><ul><li>Fluctuations in market increase the probability that higher premiums will be required to keep the policy in force. </li></ul>A great choice for those who want the security of permanent life insurance along with the flexibility of universal life and the potential higher growth of equity earnings. <ul><li>No guaranteed minimum interest rate. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  18. 18. Survivorship Universal Life <ul><li>Advantages: </li></ul><ul><li>Insures two lives, but only pays at the second death (minimum issue is $100,000). </li></ul><ul><li>Used primarily for estate planning and to pay estate taxes. </li></ul><ul><li>Premiums are lower than buying two policies because only one death benefit is being funded. </li></ul><ul><li>Life insurance protection may be available to someone who may otherwise be uninsurable, since benefit is paid only at the second death. </li></ul><ul><li>Allows insured to leverage estate by using part of it to pay insurance premiums and leave a much greater amount to heirs. </li></ul><ul><li>Can add optional Termination Protection Rider to prevent policy lapse. We’ll monitor policy to make sure premiums are sufficient to meet specified tests. </li></ul>A special-purpose policy appropriate for couples wanting to pay their estate taxes. Also a good choice for business continuation, or to help compensate heirs not involved in the family business. <ul><li>Disadvantages: </li></ul><ul><li>Uncertainty about estate taxes depending on individual circumstances. </li></ul><ul><li>Fluctuations in interest rates credited to cash values. </li></ul>Why Buy Life Insurance? Term Life Permanent Life
  19. 19. <ul><li>This presentation highlights the life insurance policies issued by COUNTRY Life Insurance Company ® or COUNTRY Investors Life Assurance Company ® and is not an offer of insurance or a statement of contract. The policy, if issued, will set forth the rights and obligations of you and the issuing company. For a complete description of the policy provisions, exclusions, and limitations, please refer to the policy itself. </li></ul><ul><li>Variable Universal Life insurance may only be sold by Registered Representatives of COUNTRY Capital Management Company. For more information about Variable Life insurance, including charges and expenses, obtain a prospectus from your registered representative. Read it carefully before you invest or pay money. There are investment risks associated with investing in variable products’ subaccounts, which should be carefully considered before making an investment. </li></ul><ul><li>Principal underwriter and registered broker/dealer, offering securities products and services is COUNTRY Capital Management Company </li></ul><ul><li>1705 N. Towanda Ave., P.O. Box 2222 Bloomington, IL 61702-2222 </li></ul><ul><li>Tel. (309) 821-5228 </li></ul>HOME QUIT Why Buy Life Insurance? Term Life Permanent Life
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