Understanding Life Insurance | What Policy is Best for You?

A life insurance policy is intended to provide liquidity for numerous purposes including estate planning, business planning, taxes and paying for final expenses. They may not be suitable for all individuals. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. Products, riders and features are subject to change and state availability. Limitations and exclusions may apply. Distributions are taken through loans and withdrawals, which reduce a policy’s cash surrender value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax-free. Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified-endowment contract (MEC). If the no-lapse benefit expires or terminates, the account value must be sufficient to keep the policy in force or additional premiums will be required to avoid policy lapse. Paying only the premium to satisfy the no-lapse guarantee may lessen the potential buildup of the policy’s account value. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the insurance company. Life insurance policies are not a deposit or guaranteed by any bank or credit union. Life insurance policies are not insured by the FDIC or any federal government agency. They are not guaranteed by any bank or savings association and may go down in value. They are not backed by the insurance producer from whom the annuity is purchased, which is not making any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Some life insurance policies have accelerated benefit riders that are available at additional cost. The forms will vary by state and may not be available in all states. Riders may be subject to an administrative fee. Please see rider forms for a complete list of illnesses and definitions. Some states may limit the definition of terminal illness to conditions that are expected to result in death within 12 months. Outstanding policy loans will reduce the amount of benefit payment. You should consult with a tax professional regarding the tax status of any benefit paid under these riders. Receipt of a benefit may affect your eligibility for Medicaid, Supplemental Security Income or other governmental benefits and entitlements.