All you need know about life insurance.

Term insurance covers a defined period (one to 30 years) and only pays benefits if you die during the defined time. Depending on the terms of the policy, premiums will remain constant or increase each year. Some policies can be renewed at the end of the term, but premium rates will usually increase.

Term insurance is designed to cover needs that will disappear in time, such as mortgage or tuition payments. Initially, premiums for term insurance are lower than for permanent insurance, which enables you to buy higher levels of coverage at a younger age. Term insurance does not offer cash value buildup.

Life insurance provided through an employer is most commonly term insurance. When an employee leaves, coverage is terminated. Most states require a conversion privilege, which allows employees to convert their policy to permanent policy when they leave their job.

Permanent insurance builds up cash value over time and provides lifelong protection as long as you pay the premiums, which can be flexible and paid periodically to meet your personal financial needs.

The cash value is different from the policy's face amount. The face amount is the money that will be paid to your beneficiary. Cash value is an amount that increases over time tax-deferred. You also can convert the cash value of permanent insurance into an annuity, which can provide you with an income for life. The policy also can be canceled or surrendered for its cash value. You may owe taxes on some of the cash value if the sum exceeds what you have paid in premiums.

A permanent life insurance policy is available with provisions (riders), such as those that permit the policyholder to purchase additional insurance without proof of insurability, to cover long-term care costs, or to collect death benefits if he or she becomes disabled or terminally ill. Riders and their costs vary among policies.

Variations of permanent life policies:

Whole Life: Generally, the premiums remain constant over the life of the policy. The cash value grows based on a fixed interest rate.

Universal Life: A universal life policy allows you to pay premiums in any amount and at any time, subject to certain minimums or maximums set forth in the contract.

Guaranteed Universal Life

Current Assumption Universal Life

Indexed Universal Life

To achieve a secure retirement, more and more retirees are including an individual annuity in their plans. An annuity can provide a steady stream of income for life, shifting the burden of managing savings from you to your life insurance company. An annuity is the only individual financial product that offers a guarantee of lifetime income.

Contact us to learn more about how individual annuities work and how an annuity might enhance retirement security.

About 70 percent of Americans age 65 and older will need long-term care services at some point in their lives. The cost for these services—both nursing home stays and care at home—is expensive. Today, the median annual cost for a nursing home stay is $87,600. In thirty years, the same stay will cost nearly $319,000. Most Americans cannot save enough to cover these high costs on their own. But long-term care insurance can cover the costs of long-term care services and protect lifetime savings.

Contact us to learn more and discuss a needs assessment.