TERM INSURANCE
May make sense for those who have budget limitations, large protection needs or temporary need.
OFFERS:
- Guaranteed death benefit for a fixed period;
- Leveled premium;
- No cash value;
- Coverage is for a certain period of time, usually for a specified number of years or to a specific age of the insured;
- Initial premiums tend to be much lower, but will eventually increase if policy matured;
- Mostly used for financial protection with large debt, home loan, mortgage, key person replacement or buy/sell agreement.
I KNOW WHAT TYPE OF LIFE INSURANCE I WANT, HOW DO I BUY IT?
Before you can purchase life insurance, you need to qualify for it.
We will ask you to provide us with information that we then use in what is called underwriting. This is the process that an insurance company uses to determine risk.
Second, all of this information is provided to an underwriter. An underwriter is someone who is specially trained to assess your application and determine what risk, if any, may exist. Once all of your information has been reviewed, the company will either approve or deny your request. That process can take days or weeks depending on the information received.
Lastly, your agent will contact you and go over the results of your underwriting and details of your policy.
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Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.
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It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
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Guarantees are dependent upon the claims-paying ability of the issuing company.
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“Standard and Poor’s®,” “S&P®,” “Standard and Poor’s 500,” and “500” are trademarks of Standard & Poor’s and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in this Product. The S&P Composite Index of 500 stocks (S&P 500®) is a group of unmanaged securities widely regarded by investors to be representative of large-company stocks in general. An investment cannot be made directly into an index.
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The use of trusts involves complex tax rules and regulations. Consider enlisting the counsel of an estate planning professional and qualified professional legal and tax advisors prior to implementing such sophisticated strategies.
