Equity Indexed Universal Life offers all of the flexibility of Universal Life. However, the actual interest rates credited to the policy’s cash value is based on the growth of an index outside of the Insurance Company, such as the S&P 500 Index.
Whole Life offers death benefit amounts as low as $5,000 with death benefits and premiums guaranteed to remain level for the life of the insured.
Single Premium Life offers a tax efficient way to transfer funds to the next generation. The beneficiary will receive a Life Insurance death benefit which will be greater than the amount of the single premium paid.
Final Expense Policies are generally small face amount policies designed for Seniors to cover funeral expenses and other needs. These policies are usually issued without medical exams or other lab tests.
Graded Death Benefit Policies are available for those who cannot qualify for the policies above because of health problems. If death occurs during the graded period (usually the first 2 or 3 years depending on the policy purchased) the beneficiary will receive an amount less than the full death benefit. If death occurs after the graded period, the beneficiary will receive the full death benefit applied for.
Who Needs It? What Is It? How Much to Cover for? It is vital for your company's financial health that you select the best insurance policy for your specific case. The above description is meant as a brief outline only, and does not reflect the full complexity of selecting the best insurance policy. If you wish to receive additional information, please follow this link for a key man insurance quote customized for your needs
Key man insurance is a sub-type of life insurance that is aimed at the business world, where one person's skills and abilities can make an enormous financial difference. If a large portion of your business hinges on a few key people, you should give some thought to key man insurance.
Key man insurance is meant to cover the company's losses in the event of the death of a key employee. That employee may be a particularly capable sales person, a manager, or the company owner – the underlying assumption is that the company will suffer greatly should that person pass away.
Key man insurance is generally a term life policy, with the length term being the time until that employee retires. The company pays the premiums on the policy and receives the death benefits if the employee unexpectedly dies. If the employee retires, the company may choose to also surrender the insurance contract, giving the employee the chance to convert the policy to a permanent one.
Losing a key employee can harm your business in multiple ways. Your key man insurance policy must provide enough coverage to account for all costs associated with such a loss. This loss is expressed not just in immediate loss of profits or revenue; the company must also bear the costs of hiring temporary replacement staff, of conducting the search for a suitable replacement, and the new employee's training.
Life insurance purchased on two individuals, usually man and wife, where the life insurance benefit is paid after both individuals have died. This type of life insurance became popular as a solution to paying estate taxes. The estate tax law allowed a couple to delay paying estate taxes until both had died. Thus, survivorship life insurance became popular as a less expensive way for heirs to pay estate taxes. The premiums are less than buying life insurance on one life.