asset strategy center
Life and Health Insurance Agency

Whether you spend your life building a business, growing a family, or in some cases both, protecting these investments during hardships is a very important consideration. An unexpected accident, illness, disability, death, or economic downturn could threaten or even devastate everything you have dedicated your life to accomplish. Whole life insurance provides the security required to help ensure that your most valuable assets can survive a life crisis.

As the name implies, whole life insurance provides protection for the duration of the insured’s life. The face value of a whole life policy will increase throughout the policy duration with the amount of increase dependent on the type of policy issued. There are variations of whole life products with the savings feature to accommodate the uniqueness of individual needs.

• Ordinary Whole Life - Also known as a straight insurance policy, is flexible with options such as utilizing dividends to pay-up the policy in a shorter time, or surrender the policy for a lesser paid-up policy, or upon retirement surrender the policy for an annuity.
• Premiums are at a level rate throughout the life of the policy.
• Designed so that the cash value accumulation equals the amount of the policy’s face value when the insured turns 100 years old.

• Limited-Pay and Single Premium Life Policies - Savings is emphasized in these types of policies and premium payments are not required after a specified period of time without any reduction in the insurance protection for as long as the insured lives.
• Limited-pay offers the option of a paid-up policy in a shorter time, such as before retirement years, with a sizeable savings fund accumulated.
• Single premium life policies are policies paid in full with a single premium paid at the policy conception. Advantages of this type of policy are:
• tax-free buildup of cash value at desirable rates;
• minimal sales commissions;
• below market interest rates on borrowing;
• use of cash buildup;
• gifting opportunities.

• Premium Whole Life Policies - Modified life and graded life are types of premium whole life policies which are compromises between the straight life and the convertible term life policies.
• Modified life policies are straight life policies however the premiums are not level throughout the premium paying period. Premiums for the first three or five year period are lower than the normal premium and then increase to a fixed amount.
• Graded life policies have a premium increase during the early years and then levels out after the specified time.

• Adjustable Life Insurance - A combination policy with level-premium, level death benefit. It may be of the limited payment policy or term insurance type.
• Offering features of level premium cash value life insurance with cash and other nonforfeiture values, dividend options, policy loan provisions, and such.
• Policy provisions allowing premiums as well as face values to be increased or decreased, and additional premium to be paid. Adjustments of this nature may also cause the plan of insurance to change, but with respect to the future only.
• The face value of the policy will increase or decreases in correlation to the premium adjustment.

• Indeterminate Premium Policies - Benefits are the same as other whole life polices however the insurer can adjust the premiums to reflect changes in investment income.
• Initial low premium is well below the maximum premium and is guaranteed for a specified period of generally two to ten years.
• The premium can change up or down subject to the specified maximum.
• The longer the initial specified guaranteed period, the higher the initial premium.
• Indeterminate premium term insurance is also available.

• Cash accumulation
• Flexibility in coverage options
• Coverage protection for the duration of Insured's life.