It Pays to Plan Ahead

Individual life insurance is primarily designed to protect against the financial loss that the death of a loved one can create. Life insurance provides a death benefit that can provide much needed income to support your family, your business, or to send your children to college. Additionally, life insurance offers many tax advantages.

There are many different types of insurance products available, each with advantages and disadvantages. Trying to sort through the choices can be a confusing and frustrating task. The experienced advisors at R.B. Wiser & Associates can help you select insurance coverage appropriate for your situation and future goals.

Permanent or Term Life Insurance?

There are two basic types of individual life insurance: permanent life insurance and term life insurance. Both permanent and term life insurance offer an income tax free death benefit to your beneficiary. However, there are several important differences as discussed below.

Permanent Life Insurance

• Provides life insurance coverage for the lifetime of the insured.
• Pays a guaranteed death benefit to your beneficiary, provided the premiums are paid.
• Premiums are usually more expensive than term life insurance because a portion of your premium is applied toward your cash value buildup. However, the cost of renewing term insurance can eventually cost you more than the cost of purchasing permanent life insurance.
• You may access the cash value of the insurance policy through tax-free loans or tax-favored withdrawals. Loans and withdrawals will reduce the cash value and death benefit of your policy. Loans are subject to interest charges.

Universal Life Insurance

R.B. Wiser & Associates offers universal life and variable universal life permanent insurance policies. Universal life, sometimes called adjustable life, offers more flexibility than traditional whole life insurance. In general, universal life offers:

• Flexibility in premiums and death benefit.
• An interest rate on the policy's cash value, which, at times, may be higher than the policy's guaranteed interest rate.

Variable Life Insurance

Variable universal life combines the flexibility of universal life with the investment options and growth potential of variable life. Variable universal life offers:

• Flexibility in premiums and death benefit.
• The opportunity to increase the policy's death benefit and cash value by investing in a portfolio of Sub-Account investments, which you select. The death benefit and cash value will vary, depending upon the portfolio's performance.

  The Sub-Account units may be worth more or less than their original cost when redeemed.

Term Life Insurance

• Provides life insurance coverage for a specific period of time. To continue coverage after the specified term has elapsed, you will need to reapply for a new insurance policy. At that time, the insurance company will again consider your health when determining whether to grant you the insurance.
• Pays a company guaranteed death benefit to your beneficiary(ies) only if you die during the specified term the policy is in force, providing the premiums are paid.
• Premiums are generally less expensive than for permanent life insurance over a short time span. However, the cumulative costs of renewing term insurance can eventually cost you more than the cumulative cost of purchasing permanent life insurance only one time.

Which type of life insurance is right for me?

Your life insurance needs are as unique as you are. That's why it is important to work with an experienced financial advisor who can assess your situation: your plans for the future and your current financial status. After evaluating your needs, you can discuss the various insurance options available.

How much life insurance coverage do I need?

There are several factors that can influence how much life insurance coverage you need. We have provided the Life Insurance Needs calculator and College Costs calculator to help you identify these needs.

How often should I review my life insurance coverage?

Your life insurance coverage should reflect important changes in your life such as marriage, the birth of a child, a move, or a new job. Aside from these momentous events, it is a good idea to review your coverage annually.

To learn how R.B. Wiser & Associates can help you choose and manage insurance policies, please call us at (800) 292-1472, (269) 372-1430 or complete the online contact form.