| Life insurance is one of the most important purchases a person will make. However, choosing from one of the many plans available can be a difficult process for your client. Age, health, type, and amount of insurance are all factors that determine the cost and availability of insurance. As an agent, your ability to effectively find coverage that meets your clients' needs, at a cost they can afford can be challenging. Master Financial is committed to assisting you with your clients by offering the following products:
Term Life
This type is the most basic form of life insurance. Coverage is specified for a period of time, up to 30 years, and provides a death benefit only. The death benefit is paid if the Insured dies during the specified period. Premiums generally remain constant throughout the duration of the contract, however, it doesn't allow for cash value accumulation.This type of insurance is useful if the client is looking for a low-cost option or if they only need coverage for a certain amount of time.
Universal Life
In addition to providing protection in case of death, a Universal Life policy also provides a savings, or cash value, component. This cash value accumulates from portions of the premium that the insurance company invests at an interest rate they determine. Although the insured has no control over how the funds are invested, they do have the flexibility, within limits, of adjusting their premium payments and death benefits even while the policy is in effect. Universal Life Insurance costs less initially but does not guarantee cash value or death benefit.
It is possible to structure many universal life policies so that the invested cash value will eventually cover the premiums. You would then have full life insurance coverage without having to pay any additional premiums, as long as the cash-value account balance remains sufficient to pay for the pure cost of insurance and any other expenses and charges.
Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
This type of insurance is for those clients that find having the flexibility to change the amount of their insurance as their needs for insurance change while accumulating tax-deferred savings ideal.
Whole Life
For those clients who enjoy the peace of mind of safety and guarantees, Whole Life is a very appealing option. These policies generally offer fixed premiums, guaranteed death benefits and are designed to build tax deferred cash value. For those reasons, a whole life insurance policy can be described as providing life insurance protection with a savings feature. Although the premiums are generally higher, it provides coverage on the insured for the insured's entire life as long as premiums are paid and the policy has not been surrendered.
This type of insurance is useful if the client wants to ensure they have a life insurance policy in place for their entire lifetime and can comfortably afford the premiums.
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