1. Life Insuraoce
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* L i fe I n s u r a n ce
^ € - V fn
* ££r.M..^MAd:h.. Li^e Insurance
Term Life insurance:
« "Temporary" Life Insurance
« P u r c has e d f o r a s p e c i f i c m ffXlP^
» Cheapest form of life insurance
* Most common lengths of policies are / O , iS , and "M- years
« Some may be 'guaranteed convertible' to permanent life insurance
« Usually no '<^^^i/^^ ' in policies
* Only 2-3% of al! term life insurance policies in force are paid at death
Permanent Life Insurance:
* "Permanent" Life Insurance, lasting until death or €tidc ti^-^
® Purchased for the rest of the insured's life
® More costly form of life insurance
* Most policies 'endow' at age ,./££. , newer policies lasting longer
® Most provide 'equity' or '((k.ii k, JlidjiJL^' account
« Various types of perrrianent insurance including u/hcHc Life,
LLf^M:^£^£A Life, and YAXl^±k.iL Life
1, Whole Life -- more ^ H^LY^ ctA/ftes. , more costly, simple and basic
2, Universal Life - more cost effective, most popular today
3, Variable Life - tied to 5-/gck mcvrk^t performance, more
risky
Do 1 Need Life Insurance?
* Is anyone .!^:£.fA^d..?..'^.dt. on you financially?

2. * Is money available for I Yf^i^eA)a:r^ expen.ses such as burial costs,
probate costs, debt repayment, etc.?
® VVill your surviving spouse, if applicable, retain enough money to maintain
their lifestyle?
® Do you want to provide an /V he/<~-fa./v'c. to your children and/or
grandchildren?
® Do you want to provide money to a church or (iki-'.-c i j"^ at your
death?
» Do you ovvn a b^i'/zJesS and want to see it stay within the family at
your death?
* Do you want to leverage' money to your heirs in a tax-efficient manner
that you are not expecting to spend?
* Do you have an J^S-he-ctc. -/-f^sy problem?
How Much Life insurance Should You O ^^
w^^
» Line-Item method _.
® Income .../2i...^i±i^i§r. method C b-7 + U i^c.cfA&. e ^ '^'^^^
Hoy/ Much Does Life Insurance
® Dependent mainly on your ../..'fffl^l^., health status, amount of life
insurance, type of policy (term or permanent) and any additional options
or Yi^ e r 5 added
Most.ConirrK)ri Mistakes to Ayoid.Con.cerning Life Insurance:
* Don't assume your j t ' e y m life insurance will be there when you die
® Don't assume you own permanent life insurance
» Don't assume you can't ^u.a-//f for new life insurance
» Don't assume it would be too expensive
® Don't forget to request 'in-force illustrations' on existing policies to see
their potential future projections ( eHvM e tJds are coming down)
® Don't always believe what you read, hear on the radio or see on the
,......i..^.f5X.^..^.t. concerning life insurance
« Your personally-owned Hfe insurance v».'ill be included in the value of your
^s4-gLf for estate tax purposes

3. New 'Hybrid' Life Insurance Poiicies
® Provides protection at death or onset of icro^j {••^^vyi to^tC
needs
® No increase in premium and no waiting period
« Generally funded with a single JLU iv S C rvi
c
Duane Home, CLU, ChFC, CFP, LUTCF - Guidance Financial - (713)853-9900