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| Insurance
Plans... |
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for the
Residents of Arizona! |
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About Life
Insurance
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In it's most
simplistic form, life insurance can be broken down into two broad
categories, defined as Term Insurance and Permanent
Insurance. Both plans have certain pros and cons which need to
be considered when making your decision. See below for more
details.
Business owners may want to consider key person life insurance
for those employees who are vital in keeping your company running
smoothly. Multiple Business owners will need to verify that their
Buy/Sell agreement is properly funded in the event of an
untimely death of one or more of the business partners. For
more information regarding business insurance options, please call
or email us directly. See the Contact Us page for details. |
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| Term Life
Insurance |
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| Term life insurance is coverage that is based on a certain time frame, or term.
For example, most policies have a term length between 10 – 30 years.
A person who is 26 years old, and purchases a "20 year term policy" will own that policy until age 46...or 20 years.
Term insurance is typically less expensive than Permanent
insurance, but the fundamental concern is that most insured's
"outlive" their policy. Therefore, the premiums paid into
the policy are never refunded. Look at the chart below for additional advantages and disadvantages. |
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| Return of
Premium (ROP)
Life
Insurance |
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| ROP Insurance, like Term insurance, is based on a certain time
frame (ie. 20 years). However, the biggest difference is
that if the insured "outlives" their policy, all of the premiums
are refunded to them. Although the premiums tend to be
higher priced, they are still not as expensive as Permanent
insurance rates. |
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Inexpensive.
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For most policies, the premiums
are guaranteed for the length of the term.
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Return of Premium (ROP)
policies are now widely available, which returns ALL premium
dollars to the insured at the end of the term length.
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Once the term is completed,
the policy is terminated, and all premium dollars are lost
(assuming policy is not ROP).
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When policy term is expired,
the renewal of policy is not guaranteed, and if the policy
is renewed, the premiums will be more expensive.
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If the insured dies AFTER the
term policy expires, the beneficiary receives $0 in benefit.
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| Permanent Life
Insurance |
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| Several types of permanent insurance products are available,
and are generally categorized into Whole Life, Universal Life, Indexed Universal Life,
and Variable Universal Life. Permanent insurance, if set up
correctly, is a policy that will last your entire life, assuming
all necessary premiums are paid. Certain types of policies
will even build a significant personal "cash value," that if set
up correctly, can become a valuable part of your financial
portfolio. Look at the chart below for advantages and disadvantages. |
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The beneficiary is
guaranteed to receive a financial death benefit
(assuming the policy is set up correctly during the
initial application) when the insured dies.
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Some policies have a
cash value that grows inside the policy. The owner of
the policy has the ability to use this cash when
he/she feels it necessary (as opposed to term
insurance, where the policy has no financial value to
the insured).
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Flexible premium
payments.
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Typically, less
stringent underwriting requirements than a term
policy.
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More expensive
premiums.
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Setting up a plan properly requires time and serious thought. A full comprehensive financial profile is
strongly required.
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Premiums are generally
guaranteed, but can vary during long economic
draughts.
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