Term Life Insurance
Life Insurance policy for a specified term or period.
Whole Life Insurance
Life insurance policy that provides certain guaranteed benefits.
Universal Life Insurance
Life insurance policy that offers more flexibility than whole life insurance. Variable Universal Life Insurance Life insurance policy with an investment component.
Quality of Life
Insurance will change the way you think about, purchase and use life insurance. It offers you the flexibility to receive benefits during your lifetime and the potential to build cash value to provide money during retirement or for other needs. Term Life Insurance Term life insurance is affordable coverage that only lasts for a certain period of time. Universal Life Insurance With universal life, you can design a Life Insurance policy to fit your changing needs and lifestyle. You may choose a level or an increasing death benefit and universal life provides attractive cash accumulation. The cash accumulation value grows tax-deferred at competitive interest rates, which is accessible by loan and surrender. Whole Life Insurance Whole life insurance protects you for your whole life. Whole life can be a solid foundation upon which to build a long-term financial plan because it provides lifetime protection for your family or business.
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What is Variable Life Insurance
Variable universal life policies are life insurance products with an investment component, allowing policy owners to invest their assets among a selection of professionally managed funds that make up the separate account. Unlike non variable policies, the insurance company does not guarantee the cash value of these investment options. Since the policy values may vary either upward or downward based on the investment performance of the investment options selected, a variable universal life policy presents an investment risk to the policy owner Insert here: call or email me for additional information and always put a link to contact page
Term life insurance policies offer insurance protection for a specified term or period of time - typically, one, five, 10, 15, 20 or 30 years, or until a specific age (such as 65). Premiums may increase each year (annually renewable term) or remain level for a set period (level term), and the insurance is generally less expensive than permanent (cash value) life insurance.
At the end of the term period the policy may contain a provision permitting it to be renewed without a medical exam, although the premium rate probably will be higher. Some term life insurance policies include an option to convert to a permanent life insurance policy.
Term life insurance is typically purchased by individuals who need insurance coverage for a temporary period of time (e.g. mortgage coverage) - or who need a large amount of life insurance at the lowest possible cost.
Traditional term life insurance provides a death benefit only; the policies do not offer an opportunity to build cash values. A new product concept known as "return of premium term" returns at the end of the level-premium period the amount of the cumulative premiums paid, if the policy is inforce, and in some cases the contract builds cash value. This is an alternative to traditional term life and permanent insurance products.
A whole life insurance policy provides a guaranteed death benefit and guaranteed cash values. The premium may be level or increase after a fixed period, but the premium will not change from the scheduled premium at issue. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis¹. In some cases, whole life policies may also be entitled to policy dividends, declared from the insurer's surplus, and an excess-interest whole life policy may earn an additional amount of interest after a specified period of time. Policy dividends and excess interest payments are NOT guaranteed. Call (256-489-4206) or email us for additional information
Approximately one-half of all American men and one-third of all American women will experience some type of cancer during their lifetimes.¹ Fortunately, with advances in cancer treatment leading to unprecedented survival rates, more patients than ever can continue to live full, rewarding lives. But while advanced treatments have vastly improved the outlook for millions of patients, the costs of these treatments can sometimes be overwhelming. Some cancer-related expenses — such as travel to treatment facilities, in-home nursing services and prosthetic devices — may not be covered by traditional health insurance plans. If cancer runs in your family — or even if it’s just a concern — a cancer insurance policy can provide the protection you need to face the future with confidence. With AG Cancer Care supplemental health insurance, you’ll have coverage for a broad array of services to help meet your individual needs. Benefits are payable directly to you, to use as you see fit — and you’ll receive benefits for services provided under the AG Cancer Care insurance even if those services are already covered by your health provider. Call (256-489-4206) or email us for additional information
Critical Care Insurance
While the chances of surviving a critical illness such as cancer, heart attack or stroke are greater than ever, living with the condition can create severe financial hardships. Traditional health insurance plans cover medical expenses, but costs such as insurance deductibles, child care, travel to and from treatment facilities, and short-term home health care must often be paid out-of-pocket by the patient. While disability insurance policies will replace lost income, they may require a lengthy waiting period to take effect. Critical Care supplemental health insurance to help cover the additional expenses associated with a critical illness diagnosis. The benefit is paid directly to you to use as you see fit — regardless of what is covered by your other insurance plans. Whether you use the single-payment benefit for additional treatment-related costs, to replace lost income or to transport a loved one from another city, critical illness insurance helps alleviate financial burdens associated with your treatment — so you’re better able to maintain your way of life and focus on recovery.
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Start building the retirement of your dreams – today Annuities are a
means of funding your retirement. An annuity is a contract with an
insurance company that allows you to save for retirement; it is also a way
to guarantee that you don’t live longer than your money lasts. Annuities
can be a valuable part of your financial plan. During your working years,
you can use a deferred annuity to accumulate assets. The money inside the
annuity grows tax deferred. That means as long as money is inside the
annuity, you don’t pay any federal income taxes on the growth!* This
allows your money to grow at a faster pace than it would outside of a
tax-deferred instrument. You can invest your money in a deferred annuity
in a single lump sum (called a single premium) or over a period of years
(called a flexible premium). An annuity can also provide you an income
stream. In essence, it's a paycheck, when you need it. Whether you use a
deferred or an immediate income annuity to create an income stream depends
upon how soon you want to start receiving the income payments. As their
names imply, you can either begin receiving payments immediately or you
may defer them.
What is a deferred annuity? A deferred annuity is a contract between a life insurance company and an individual (the annuity owner), under which the insurance company agrees to accept a premium payment and administer or maintain the annuity until funds are distributed. A deferred annuity has two phases: an accumulation phase and a payout phase. During the annuity’s accumulation phase, funds are paid into the contract and interest is credited. This phase can last from a few years to several decades, depending on the needs of the annuity owner. During the payout phase, funds are paid out of the annuity based on the option selected by the annuity owner. Payments can be distributed over a certain period of time or for the life of the annuitant. Whether it's used as a retirement savings vehicle or as a steady stream of income, an annuity can be the entire solution or part of an overall diversification of assets.
What’s right for you depends on your individual situation. Fixed Deferred Annuities Overview: Fixed Deferred Annuities Fixed deferred annuities are a time-honored method to save money until a future day when it will be needed for important things such as retirement or a child’s education. The interest accumulated in deferred annuities grows tax-deferred1; this feature makes them an important part of a financial plan. Fixed deferred annuities also provide an income stream that can’t be outlived once they are annuitized; this makes them an essential part of an overall retirement plan.2 Benefits of Fixed Deferred Annuities People purchase annuities for a wide range of reasons, and financial advisors are finding more uses for them in overall financial plans.
The main reasons annuities have such
strong appeal in today’s market are: Tax Advantages: Under IRS
regulations, annuities allow for tax-deferred growth, along with
tax-advantaged payout on annuitization. During the accumulation phase,
interest earned on annuities is not taxable until funds are withdrawn.
During the payout (annuitization phase), tax liability is spread out over
the duration of the stream of payments.
Income for Life: Annuities are the only products in the market that can guarantee a stream of payments that cannot be outlived by the annuitant2
No Limits on Contributions: Nonqualified annuities are not subject to the same rules limiting annual contribution amounts to IRAs and qualified plans
Safety of Premium: Fixed annuities and indexed annuities contain provisions that allow the owner to minimize the risk during market decline Reasons to Purchase a Fixed Deferred Annuity Who Purchases Fixed Deferred Annuities?
Fixed deferred annuities can be an excellent solution for a variety of people, including:
Individuals who are risk-averse or who have seen their assets erode recently
Anyone who is contributing the maximum to their employer-sponsored qualified plans
People who feel they are “behind” in their retirement savings
Anyone who could benefit from a tax-deferred product
CD purchasers who want retirement income
Indexed Annuities Overview: Indexed Annuities What Is an Indexed
Annuity? An indexed annuity is a fixed annuity with an interest rate that
is linked to the performance of a financial index, such as the Standard &
Poor’s 500 Index3. Interest is calculated based on changes in the index
and credited on a regular basis. Like other fixed annuities, indexed
annuities also guarantee a minimum non forfeiture interest rate.2 Indexed
annuities provide contract owners with the potential to make more interest
than they would in fixed deferred annuities at times when there are gains
in the stock market. And although you get to benefit from rising markets,
indexed annuities limit the market risks inherent in variable annuities.
With variable annuities you can actually lose money in “down” markets.
Indexed annuities are protected by their guaranteed minimum non forfeiture
interest rate.2 What are Advantages and Disadvantages of Indexed
Clients considering an indexed annuity should consider all the product’s advantages and disadvantages, including:
Potential for market growth plus protection against losses
A guaranteed interest rate prevents market downturns from eroding the principal
Tax-deferred growth of earnings until withdrawal
Higher potential returns –but also higher risk levels – than traditional fixed annuities, CDs or bonds
Greater Stability – but also lower potential returns –than variable annuities, mutual funds or stocks
Annuities in general, including indexed annuities, are designed for long-term (as opposed to short-term) investment goals
Carefully consider any surrender charge penalty if you are considering replacing a variable annuity with an indexed annuity
As with all annuities, withdrawals taken before age 59 ½ may be subject to penalties and additional taxes
Expenses - such as maintenance and contract fees
When making a decision…important items to compare:
Surrender Charge or Withdrawal Charge Period – Depending on when you need to access your money and what your investment time horizon is, you need to look for an annuity that fits with your plan. If you have a long time frame before you expect to access the assets, then an annuity with a longer time frame might be right for you. This is because these annuities historically pay a higher interest rate than shorter term products. On the other hand, if you will need access to your money in a shorter term, then it might not make sense to subject yourself to withdrawal charges. Withdrawal Privileges – Make sure that the product you select matches your needs. If you need to withdraw money every year, then make sure and select a product that has the right options. Withdrawal privileges vary greatly among companies and products. Death Benefit – If you are worried about what will be left for your heirs, then be sure to ask and understand the death benefit that will be paid out of an annuity contract in the event of an untimely death. Interest Rate Guarantee Period – Some products guarantee their initial interest rate for several years and some only guarantee it for a year at a time. Do you want to know exactly how your purchase will perform for years to come? Or, are you comfortable with the insurance company setting a new rate each year? Thinking about this will help you determine which products are correct for you.
Traditional Fixed Deferred Annuity or Indexed Annuity? If you are the
type of person who does not like the thought of losing principal, then you
are already a good candidate for fixed annuities. Traditional fixed
annuities will credit a stated rate of interest each crediting period
(usually annually). However, if are you also the type of person who is
willing to risk earning no interest if there is potential to earn a
greater amount of interest, indexed annuities are designed to credit
interest tied to an index, such as Standard & Poor’s 500 Index.3 If the
index return is positive for a given period, then you will receive
interest based on the change in the index. The interest earned could be
higher or lower than the interest paid on a traditional annuity. If the
index return is negative, then pay no interest (0%) or a small return.
Indexed annuities provide the potential for a better than average return,
compared to traditional deferred annuities; however, if the index
performance is negative, no interest may be paid for the crediting period.
1 Based on current tax law, a 10% Federal penalty tax may apply to
distributions before age 59 ½. 2 Guarantee based on the claims-paying
ability of the insurance company. 3 "Standard & Poor's®," "S&P®," "S&P
500®" and "500" are trademarks of the McGraw-Hill Companies, Inc., and
have been licensed for use by American General Life Insurance Company.
This product is not sponsored, endorsed, sold or promoted by Standard &
Poor's, and Standard & Poor's makes not representation regarding the
advisability of purchasing this product.
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Immediate Income Annuities
The Concern: Many Americans are rightfully concerned that they will live longer than their income lasts. Are you? Recent statistics show that if you and your spouse are both 65 today, there’s a 50% chance that one of you will live to age 902 and a 25% chance that one of you will live to age 96.2 And the longer you live, the more likely you are to outlive your savings. The Solution: A guaranteed stream of income that you can't outlive.