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Life Insurance



Today, there is a wide variety of life insurance available, the most basic of which are term and permanent. Within each of these categories, however, there are many different types to choose from – and being familiar with these can help you better customize the coverage to meet your specific needs. To request a quote just, just click on the link below or call Maria Gutierrez at 954-394-8672 or send your request to We are focused on educating and informing consumers regarding their LIFE INSURANCE options and assisting them in acquiring the most appropriate policy for their individual needs and their loved ones.

Term Life:  is considered to be the most basic of life insurance that can be purchased. This is because term life offers just pure death benefit protection only, without any cash value builds up within the policy. Because of this, term life insurance is often very affordable – especially for those applicants who are younger and in good health at the time they apply for the coverage. With term life insurance, coverage is purchased for a certain length of time, such as for 10 years, 15 years, 20 years, 25 years and 30 years – and in some cases, even longer. There is also a 1-year renewable term life insurance option that is offered by many of the best life insurance carriers we represent.

Typically, when purchasing a level term life insurance policy, the amount of the premium will remain the same throughout the period that the policy is in force. Provided that the insured survives throughout the time period of the policy, and he or she wishes to remain covered by life insurance, they will need to re-qualify for a new policy at their then-current age and health status. At that time, the premium on a new life insurance policy may be quite a bit higher. In some cases, a term life insurance policy may have an option to convert the coverage over into a permanent life insurance plan.

Term with Return of Premium: The return of premium (ROP) option. If you want your money back, you can request a refund of your premiums, subject to a vesting schedule and policy surrender charges. Very popular option offered by many insurance companies.

Increasing and Decreasing Term: On some types of term life insurance, the death benefit will go down over time. These are known as decreasing term life insurance policies. (The premium, however, will usually remain the same). With a decreasing term policy, the policy ends when the death benefit reaches zero. An individual may want to purchase a decreasing term life insurance policy to cover the balance of their unpaid mortgage. Each year, as the amount of the mortgage balance decreases, so does the amount of the insurance coverage – until eventually both will end. There are also term policies where the death benefit increases over time. Often, this benefit will be purchased as a cost of living rider on the policy. A young parent may consider this type of policy as their coverage needs increase.

Permanent Life: Permanent life insurance is different from term insurance because it offers both death benefit protection, as well as a cash value component. It also differs because, as the name suggests, it does not have a time limit like term insurance, but rather is intended to last for the remainder of the insured's lifetime – provided that the premium is paid. There are many different types of permanent life insurance.

Whole Life: The simplest type of permanent life insurance coverage is whole life. With this type of coverage, the premium amount is locked in and will remain the same throughout the entire lifetime of the policy. This can be helpful for those who need to stick to a budget. It also means that if a person purchases a whole life policy at a very young age, they will still pay the same amount of premium when they get older – regardless of advancing age, or even an adverse health issue. In some cases, where a person's pre-existing conditions require the individual to buy “High Risk Life Insurance” some graded whole life policies are the only option. The cash that is in the cash value component of a Whole Life Insurance policy is allowed to grow on a tax-deferred basis. This means that the gain on these funds will not be taxed until or unless they are withdrawn, allowing them to compound exponentially over time.

At first, the cash value in a whole life insurance policy will grow slowly. This is because the majority of the early premium dollars will go towards paying insurance costs. However, over the years, the cash value in a whole life policy can steadily grow, often with a minimum guaranteed rate of return. Some whole life insurance policies will even provide dividends to their policyholders. Because these are considered to be a return of premium to the policyholder, they are also not taxed. Dividends can also help the cash value in a policy grow significantly – although they are never guaranteed.

Universal Life: Another form of permanent coverage is Universal Life Insurance. This type of life insurance also provides a death benefit and a cash value component where the funds are allowed to grow tax-deferred. Universal life insurance is more flexible than whole life coverage, though. This is because the policyholder is allowed – within certain guidelines – to choose how much of his or her premium dollars will go towards the policy's death benefit, and how much will go towards the policy's cash value. Because universal life is a permanent life insurance policy, the policyholder will have access to their cash value account. So, just as with a whole life plan, the cash value can be borrowed or withdrawn for any reason – including paying off debt, supplementing retirement income, or even going on a vacation.

Variable Life: Variable life insurance is also a form of permanent life insurance coverage. These types of life insurance policies offer a death benefit, as well as a cash component. However, with variable life insurance, the policyholder can take part in a variety of different investment options such as equities and mutual funds. This means that their funds have the opportunity to grow a great deal more than the funds in a whole life policy can. It also means that there can be more risk as funds are exposed to the ups and downs of the equities market. It is important to note that while the policyholder can increase their funds based on market movements, their cash is not invested directly in the market. Rather, it is invested in “sub-accounts” by the insurance company. With a variable life insurance policy, the death benefit may go up or down- however; it will not go below the set guaranteed amount. This is usually the original amount of death benefit that is purchased at the time of policy application.

Indexed Universal Life:  Indexed universal life is a version of universal life that combines death benefit protection with the opportunity to grow cash value through an account that credits interest based upon the upward movement of stock market indexes – without the risk of investing directly in the market. The Index Account features a zero percent floor which guarantees your account won't earn less than zero percent due to poor market performance.

IUL allows the owner to allocate cash value amounts to either a fixed account or an equity index account. Policies offer a variety of well-known indexes such as the S&P 500 or the Nasdaq 100. IUL policies are more volatile than fixed ULs, but less risky than variable universal life policies because no money is actually invested in equity positions. IUL policies offer tax-deferred cash accumulation for retirement while maintaining a death benefit. People who need permanent life insurance protection but wish to take advantage of possible cash accumulation via an equity index might use IULs as “Key Person Insurance” for business owners, premium financing plans or estate-planning vehicles.

Click HERE for a VIDEO explaining the great benefits of Indexed Universal Life

Survivorship Life: With a survivorship life insurance policy, there is more than one person that is covered. These policies can be set up in a couple of different ways. One way is first to die. With this type of policy, the coverage is designed to pay out when the first person passes away. In most instances, the premium that is charged for this type of policy can be higher than for a policy on just one insured. However, it can often be less than purchasing two separate life insurance policies. There are also joint and survivor, or last to die life insurance policies. With these policies, the coverage pays out when the second person on the coverage passes away. These can either be term or permanent coverage. These policies can also have other advantages, too, in that they typically will cost less than two separate life insurance policies, and they may have less strict underwriting criteria – especially if one of the individuals is in very good health.

Final Expense Life: Final expense life insurance coverage is often called “Burial Insurance” and is purchased by those who are considered “seniors,” or between the ages of 50 and 85 – although there are some insurance companies who will sell policies to applicants who are older. This type of coverage is typically geared towards those who want to ensure that their loved ones will not be saddled with the high cost of a funeral and other related expenses such as a headstone, burial, flowers, and memorial service. Today, the average cost of such items nationwide can be in the range of $10,000 – an amount that many families just simply do not have readily available. So, a final expense life insurance policy can help. Final expense coverage can be either term or permanent – and oftentimes the underwriting requirements are not stringent. Also, the premium cost for this type of coverage is usually not high, even though the applicants are usually older.

No Medical Exam Life: Often called “Simplified Issue”. This type of coverage will not require that an applicant undergoes a medical examination as a part of the underwriting process. In many cases, when applying for life insurance, individuals must meet with a paramedical professional who will ask them in-depth health questions, and will also take from them a blood and a urine sample. Because of this, those who have certain types of adverse health conditions may be denied for the life insurance that they need. But, with no medical exam, they could be approved for the coverage that they need – and, because there are no medical underwriting requirements to contend with, these policies are often approved within just a day or two after application.

Living Benefits & Optional Benefits Riders: Available in Term and Whole life depending on the carrier. Are accelerated Benefit Riders (ABRs) which provide the option of receiving a partial or full acceleration life insurance benefits if the insured experiences a qualifying medical condition. You can accelerate the policy in full in which case the policy will be terminated. The ABRs can provide funds when they are needed to help at a critical time and help protect the money you have saved for retirement and other life needs. Depending on eligibility and state variations, the rider can be issued with one or more of the following eligible illnesses: Chronic Illness, Critical Illness or Terminal Illness. Certain conditions & restrictions apply.

There are other Optional Benefits or Riders available depending on the plan: Disability Income Benefit, Disability Payment of Premium, Nursing Home, Long Term Care Rider, Accidental Death, Waver of Premium, Return of Premium, Spouse & Children’s Term insurance and a lot more!

Linked Benefits: Some extra benefits are built into the policy

Long-Term Care Benefits: If you need care, the policy provides tax-advantaged reimbursements for qualified LTC expenses.

Death Benefit Protection: When you die, your beneficiaries will receive a death benefit – even if you exhaust the entire long-term care benefit.

 Tax-Free benefits:Pay no income tax if you use your life insurance for qualifying long-term care expenses if you need it

Return of Premium: The return of premium (ROP) option. If you want your money back, you can request a refund of your premiums, subject to a vesting schedule and policy surrender charges.

Long-Term Care (LTC):  Is an insurance product that helps pay for the costs associated with long term care. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid. Individuals who require long-term care are generally not sick in the traditional sense, but instead, are unable to perform two of the six activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking. These policies are design to provide a set monthly benefit for a specific amount of time in a Nursing Facility, Home & Community Care or Assisted Living Facility. It may include additional benefits like Hospice Care, Home Assistance Benefit, Waiver of Premium, Survivorship, 1st-Day Home Care, Wellness program and more!

There are two types of Long-Term Care policies offered today:

1. Traditional: policies are the most common policies offered. Traditional policy premiums, like automobile insurance premiums, are paid on a continual basis. If unused, no premiums are returned. However, if the policy has a "return of premium" rider, a death benefit will be paid to a beneficiary if the insured dies at a time when benefits received under the policy are less than the premiums paid to the insurer. The amount of the benefit is equal to the excess of premiums paid over benefits received.

2. Combination or Hybrid: policies are a combination of life insurance or an annuity with long term care insurance. Several varieties of these combinations exist.

There are two tax classifications of long-term care policies offered today:

1. Tax qualified (TQ) policies: are the most common policies offered. A TQ policy requires that a person A)  be expected to require care for at least 90 days, and be unable to perform 2 or more activities of daily living (eating, dressing, bathing, transferring, toileting, continence, without substantial assistance (hands on or standby); or B)  for at least 90 days, need substantial assistance due to a severe cognitive impairment. In either case a doctor must provide a plan of care. Benefits from a TQ policy are non-taxable.

2. Non-tax qualified (NTQ) policies: was formerly called traditional long-term care insurance. It often includes a "trigger" called a "medical necessity" trigger. This means that the patient's own doctor, or that doctor in conjunction with someone from the insurance company, can state that the patient needs care for any medical reason and the policy will pay. NTQ policies include walking as an activity of daily living and usually only require the inability to perform 1 or more activity of daily living. The Treasury Department has not clarified the status of benefits received under a non-qualified long-term care insurance plan. Therefore, the taxability of these benefits is open to further interpretation. This means that it is possible that individuals who receive benefits under a non-qualified long-term care insurance policy risk facing a large tax bill for these benefits.

Fewer non-tax qualified policies are available for sale. One reason is that consumers want to be eligible for the tax deductions available when buying a tax-qualified policy. The tax issues can be more complex than the issue of deductions alone, and it is advisable to seek good counsel on all the pros and cons of a tax-qualified policy versus a non-tax-qualified policy, since the benefit triggers on a good non-tax-qualified policy are better. By law, tax-qualified policies carry restrictions on when the policy holder can receive benefits. Once a person purchases a policy, the language cannot be changed by the insurance company, and the policy usually is guaranteed renewable for life. It can never be canceled by the insurance company for health reasons, but can be canceled for non-payment. Most benefits are paid on a reimbursement basis and a few companies offer indemnity-based per-diem benefits at a higher rate. Most policies cover care only in the continental United States.

Long-term care insurance rates are determined by six main factors: the person's age, the daily (or monthly) benefit, how long the benefits pay, the elimination period, inflation protection, and the health rating (preferred, standard, sub-standard). Most companies will offer couples and multi-life discounts on individual policies. Some companies define “couples” not only to spouses, but also to two people who meet criteria for living together in a committed relationship and sharing basic living expenses. The average age of purchasers has dropped from 68 years in 1990 to 61 years in 2005, and the number of purchasers who are under age 65 has increased significantly.

Critical Illness Life: pays a lump-sum benefit of diagnosis of a covered condition. There are different types of coverage: Critical Illness Cancer Insurance Heart Attack/Stroke Insurance, Renal Failure, Major Organ Transplant, Terminal Illness, Total Disability and more! Coverage Options: Lifetime or Term policies. Face Amounts: $10,000 to $250,000 Simplified Underwriting. Higher coverage with Full Underwriting is also available.

Upon diagnosis of a covered condition, a check is sent to the policyholder, not the health care provider. No receipts or medical bills necessary. Payment is issued to you, to use any way you want. Examples include: Replacing lost income while you’re off work keeping up with ongoing living expenses, paying health insurance deductibles and copayments, hiring home health care or child care services or traveling to treatment facilities.

Accidental Death Life: Is a Guaranteed issue or Simplified issue underwriting. Benefit paid due to death, dismemberment and paralysis insurance that provides 24-hour coverage. The policy provides lump-sum indemnity benefits and is guaranteed renewable for life. Accidental Death Benefits Amount from $50–$500,000- Jumbo amounts also available- ages 18-70. Other benefits included: Dismemberment Benefit as a Percentage of Accidental Death Benefit, Loss of Hearing and Severe Burns Benefit, Common Carrier Benefit. Riders: Disability Income Rider (Accident Only); Waiver of Premium Rider (Accident Only) and Return of Premium Rider. Exclusions (may vary by state) Policies are available at very low rates.

Premium Financing: Premium finance is an strategy that allows a high net-worth individual or business owner, who has a need for life insurance, to use an alternative method for paying premiums rather than using their current cash flow or assets. Clients are generally sophisticated and understand the power of leverage and the associated risks of leverage. Premium finance is not an opportunity to obtain free life insurance.

Once the need for Estate Liquidity, Key Person Coverage, Executive Benefits Coverage or Business Succession Planning etc., has been established, Premium Financing may enable the insured to move forward with the purchase without having to liquidate other assets. Premium Finance is not an insurance product or a case design. An overall profile of the applicant is required that will support the requested premium and amount of coverage. These cases are underwritten based upon overall financial justification, which includes the ability to qualify for the requested death benefit as well as the ability to pay premiums, independent of financing.

The “Cash Value” Concept: When an insurance policy contains a guaranteed cash value for a guaranteed premium, it means that the premium is larger at the beginning of the policy than it would be in a term policy so that the additional premium can be invested in a “separate account” controlled by either the insurer or the policy holder in order to grow the cash value.

Whatever gains are earned can be used in a few different ways: to increase the death benefit, to borrow against for some later use or to keep the policy in effect so that you can stop paying monthly premiums. If you have a cash value policy, it’s best to hold it until death or retirement so you can allow for probable gains.

Tax Benefits of Life Insurance: These tax benefits within a Universal Life Insurance Policies are similar to 401ks and IRAs. Annual earnings on the investment part of the policy don’t get taxed and any taxable gains when cashing out on a policy can be reduced by the amount of insurance protection the plan provides. Furthermore, in the case of death, the policy holder’s gains usually aren’t taxed.

Such policies can offer a range of investment options, including stocks, bonds, balanced mutual funds, international mutual funds and money market accounts. When deciding to invest, work with a financial advisor and always invest just as much as you foresee needing, neither more nor less.


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