The Pillars of Financial Stability and Wealth Building: Permanent Life Insurance and Invested Assets

August 31, 2011  |   Uncategorized   |     |   Comments Off on The Pillars of Financial Stability and Wealth Building: Permanent Life Insurance and Invested Assets

It is pivotal to most people to have integrated a solid relationship between retirement assets and permanent life insurance assets in both preretirement and retirement. These two pillars working together are unbeatable in maximizing the use of your money today and well into your retirement.

What do we all want out of our retirement?

The Answer:

The ability to take the highest income streams possible and perpetuate them throughout our retirement under all economic circumstances.

There are four types of permanent life insurance:

Variable Life: As with whole life, you pay a level premium for life. However, the death benefit and cash value fluctuate depending on the performance of investments in what are known as subaccounts. A subaccount is a pool of investor funds professionally managed to pursue a stated investment objective. You select the subaccounts in which the cash value should be invested.

Universal Life: You may pay premiums at any time, in any amount (subject to certain limits), as long as the policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be changed, and the cash value will grow at a declared interest rate, which may vary over time.

Variable Universal Life: A combination of universal and variable life. You may pay premiums at any time, in any amount (subject to limits).

Whole Life: You generally make level (equal) premium payments for life. The death benefit and cash value are predetermined and guaranteed (subject to the claims-paying ability of the issuing insurance company). Your only action after purchase of the policy is to pay the fixed premium.

Variable life insurance policies are sold only by prospectuses, which contain more complete information about fees, costs, charges, any consequences of early withdrawals, and other factors that may apply. Investors should read and consider carefully the product and fund prospectuses before investing. As with any investment, investing in variable portfolios involves risk, including possible loss of principal. We can obtain for you the current prospectuses for the products we offer.

Life insurance guarantees are based on the claims-paying ability of the issuing insurance company.