Quotes
Life Insurance
Facts
Insurance has one or both of two
primary features — protection in the form of a death benefit and
tax-deferred cash value buildup. When these features are combined,
insurance can ensure fulfillment of important funding
programs
As a funding vehicle, insurance offers additional
flexibility because loans can be taken against a policy's cash value
on a tax-free basis. Cash value can also be accessed by surrendering
the policy, but the proceeds are taxable.
Life insurance protection for a specified period of
time that pays a benefit only if death occurs within that period.
Permanent life insurance coverage (provided that
premiums are paid when due) with level premiums and death benefit
coverage that lasts for your entire lifetime.
A form of permanent life insurance (as long as there is
sufficient cash value to cover the policy costs) that is
characterized by its flexible premiums, flexible face amounts and
unbundled pricing factors. Cash value buildup is tied to interest
rate performance.
Variable Life
Insurance
Variable life insurance is cash-value life insurance
with values reflecting the performance of a variety of funds that
you select. It differs from traditional permanent life
insurance.
With traditional life insurance, the
insurance company invests your cash value in investments with
relatively predictable performance over long periods. This allows
the company to guarantee at least a minimum cash value.
With variable
life insurance, you choose how your cash value is invested among
a variety of funds, such as growth, value, index, balanced,
overseas, and money market funds, and often a fixed account as well.
Although the insurer doesn't guarantee a minimum cash value, there's
no limit on the potential growth of your cash value. This means that
over time, both the cash value and the death benefit have the
opportunity to out-perform other forms of life insurance. Unlike
traditional life insurance, however, variable life insurance has
inherent risks associated with it, including exposure of your death
benefit and cash value to market volatility. Investment performance
and principal will fluctuate with changes in market
conditions.
What are the tax advantages?
Following current tax laws, the earnings from your policy's cash
value are tax deferred. You have access to your cash value through
tax-free loans (subject to certain restrictions). Your beneficiaries
receive the death benefit free of income taxes, and if ownership is
properly structured, they may be received free of estate taxes as
well. Loans from life insurance policies reduce the cash value and
death benefit. Interest will be charged on the amount borrowed.
Borrowed funds do not participate in the investment performance of
the sub-accounts.
For more quotes on life insurance
protection, please call us at (201)-704
1720
Pappas Financial Services LLC is a
registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek,
CA.” | 
