Term vs. Permanent  

Life insurance comes in two basic forms — term insurance and permanent insurance.
Which path to take?
Both types of insurance do exactly as their names imply: term insurance provides coverage
for a specific period of time (the “term” of the policy), while permanent insurance provides protection permanently (as long as the policy remains in force). 

When affordability is an issue, term insurance can provide a viable solution to help meet your protection needs. And some term policies can be converted to permanent insurance down the road.

One of the major benefits of permanent insurance is that it accumulates cash value over the years. The growth is tax-deferred and can be borrowed against or withdrawn to help fund almost any need.

What’s NEW on the Menu?

Guaranteed Universal Life Insurance!!!!!
Like the food in any fine restaurant, permanent insurance comes in several different varieties: whole life, universal life and variable universal life. Each has its own strengths, and you can choose which is right for you based on your personal style, taste and need

Whole Life The oldest — and most conservative form of permanent life insurance is whole life. Whole life is popular because it offers the most guarantees. With whole life, your premium payment remains level for the life of the policy, so you always know what your costs will be. Your only responsibility is to pay your premiums. Whole life also offers cash value that accumulates tax-deferred, and which can be borrowed against, as needed. 

Universal Life has many similarities to whole life, with some added built-in flexibility.
There is no fixed premium to pay with a universal life policy. This flexible premium gives you the ability to fund the policy in a variety of ways. You can adjust your scheduled premium payments to meet your changing needs, provided that your premiums are sufficient to keep the policy in force. You also have the ability to increase or decrease your policy’s death benefit, depending on your needs. Your agent can help you determine the death benefit you need, and establish a premium payment schedule that will work for you. With this flexibility, however, comes additional responsibility for the policyholder.

When a premium is paid into a universal life policy, that money is, in effect, deposited into a cash value
account. Each month, the monthly deduction charges, including the Cost of Insurance (COI), are deducted
from this account. However, if there is not enough cash value in the account to pay the monthly deduction charges, the policy will lapse. It is your responsibility to ensure you pay enough premium to keep a universal life policy in force. 

Like whole life, the cash value of a universal life policy accumulates tax-deferred. Unlike whole life,
universal life has an interest rate that can vary — but the interest rate will never drop below the guaranteed minimum stated in the policy. The rate can be linked to either the investment experience of the insurance company or a market index, and will change periodically.

Variable universal life (VUL) is another type of permanent insurance, and is similar to universal life. VUL is a flexible premium, permanent life insurance policy that allows you to have premium dollars allocated to a variety of investment options, including a fixed account. The policy generally provides an income tax-free death benefit, has a cash value that grows tax-deferred, and is accessible through policy loans and/or withdrawals. This money can be used to supplement retirement income, pay for a child’s education, or meet a variety of other financial goals. The policy allows for the increase or decrease of coverage to meet your changing needs. Overall, VUL can be a good option for people who want to combine life insurance protection with a higher potential for investment return –– at a higher risk, of course. 

Will you please answer the FAQ below

1. What do all those fancy insurance words mean?  
2. What insurance companies does Horizonlifeplan and SSIP work with work with?
3. Why is there a difference between the Preferred and Standard rates?
4. What should I do if I currently have insurance? 
5. Once I obtain my policy, will my rates go up if my health deteriorates?  
6. Do I have to take a medical exam in order to apply for a policy?
7. What should I do to prepare for the exam?  
8. When will my coverage be effective?  
9. How do I pay for the insurance?  
10. What if I change my mind after I am approved and pay for my policy?  

Just e-mail boomeradvisor@yahoo.com or call 216.346.1525

Please join me in congratulating…Mary!

Mary just sent me a picture of the new car she purchased. She was really excited because she got a loan from herself on the car, instead of from some bank charging her 6% interest!

How did she do that?

She did it by using a neat tool that we call the infinite banking program. It allows you to build your own bank and pay interest to yourself instead of everyone else.

This can mean double or triple the amount you have saved for retirement. (Financing several cars like this over your life span can amount to over 1 million dollars! Would you rather pay that to yourself or your banker? We all know the answer to that! Mary decided to pay herself.)

Congratulations Mary!

Few people would walk into a fine restaurant and order without asking the waiter for suggestions. You
should be even more careful when buying an insurance policy that you intend to have for the rest of your
life. I  help you to  determine which product is best suited to your unique objectives and financial goals. 


Please contact me with any questions.
Marc Crolius

marc@horizonlifeplan.com

 216.346.1525