Permanent Life Insurance

Life insurance may be necessary at all stages of life, depending upon your family, business and estate situation. Usually, the need for life insurance increases as your family and practice grow. As your wealth becomes substantial, life insurance is required to offset the significant impact of estate taxes that can consume up to 50% of assets at death.

Permanent life insurance can provide lifelong protection. As long as you pay the necessary premiums to keep the policy in force, the death benefit will be paid. These policies are designed and priced for you to keep over a long period of time.

A feature of permanent life insurance known as “cash value, “cash surrender value,” or “net surrender value” is the amount available when you surrender a policy before its maturity. This value is different from the policy face amount, which is money that is paid at death, or at policy maturity.

You can cancel* or “surrender” the policy, in part or total, and receive the cash value as a lump sum. Provided sufficient value has accumulated, your cash value can be used to pay the premiums for your current insurance protection, or for a lesser amount of insurance. You may be able to borrow** from the insurance company, using the cash value as collateral.

* If you surrender your policy in the early years, there may be little or no cash value and there may be surrender charges assessed. In addition, tax consequences may occur if you cancel a policy.

** You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit. Unpaid policy loans reduce the policy’s cash value and death benefit and may result in a tax liability.

Contact us today for a no-obligation consultation with one of our resident specialists to discuss your life insurance needs.