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Providing Protection, Security, Peace of Mind, Retirement, College Education for you and your family are reasons why people purchase life insurance.
At The Haberman Group, Inc. we focus on your individual needs and let you take an active role in your financial planning and protection. If you are shopping for life insurance, we will provide you with a diverse selection of life insurance products from top rated insurance carriers.
We search for the lowest cost life insurance available using our database of over 100+ life insurance companies. We work for you, not the insurance companies.
Listed below you will find information to help you make an informed decision:
Term Life Insurance
Term insurance is typically the lowest cost life insurance product available. When you buy term life, you are purchasing "pure" insurance which does not include a cash value or savings feature. Term insurance is purchased for a particular length of time, usually a short period. Once that term period has expired, you may either convert the policy to a permanent product such as whole life insurance or let the policy terminate. If the insured dies within the "term period," the predetermined death benefit will be paid to the beneficiaries.
Premiums - are based on the face amount and the insured's attained age, gender, and health conditions.
Whole Life Insurance
Whole life insurance provides permanent death protection for beneficiaries, while providing a living benefit in the form of an accumulating cash value account for the insured.
Advantages:
- Pays a death benefit to the insured's beneficiaries
- Premiums are fixed from the time of purchasing the policy
- Provides the insured a tax-deferred, low risk, cash value account
- The interest accumulated through the investment portion of the policy is tax-deferred until its withdrawn
- Provides the insured the option to receive dividends that may be applied to the policy to reduce payments
- The insured has the right to borrow against the cash value account
Cash Value:
The cash value portion of a whole life policy increases based on dividends. In the early years, the account increases gradually. The reason for the slow buildup in cash is due to the breakdown of the premium. The bulk of the premium goes toward the insurance portion of your policy, a small part goes toward administrative expenses, and the balance goes toward the investment or cash portion of your policy. As such, it is not recommended that this type of policy be purchased if the insured is going to hold it for five years or less.
Premiums:
Premiums are higher for whole life insurance than term insurance.
Universal Life Insurance
An universal life policy is a permanent, flexible premium, and adjustable face amount life policy.
This policy is a true "interest-sensitive" or "current interest" product.
Advantages:
- Provides a death benefit to the beneficiary and offers a tax-deferred, low risk, cash value to the insured
- The insured has the ability to vary the amount of premium as well as the face amount of the policy
- Allows the insured to earn market rates of interest on the cash value account
- Offers the right to borrow or withdraw from the policy
Cash Value:
The cash value of Universal Life Insurance grows at a variable interest rate. Normally, there is a guaranteed minimum interest rate applied to the policy, usually 4%. If the insurance company does well with its investments, the interest return on the cash portion will increase.
Premiums:
The bulk of the premium goes toward the insurance portion of your policy, a small part goes toward administrative expenses, and the balance goes toward the investment or cash portion of your policy.
Variable Life Insurance
Variable Life Insurance is a form of whole life insurance. This type of policy provides both a death benefit and a cash value account that varies according to the investment performance of a separate account. Because the amount of the death benefit can vary, variable life is designed to reflect the cost of living increases.
Advantages:
- Minimum death benefit is guaranteed, usually considered the policy face amount
- The insured may select how the funds in the investment portion of the policy are invested
- The insured may choose to invest in a wide array of investment vehicles such as stocks, bonds, or mutual funds
Premiums:
The bulk of the premium goes toward the term life insurance portion of your policy, a small part goes toward administrative expenses, and the balance goes toward the investment or cash value portion of your policy.
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| For more information about any of these group plans, please e-mail us or contact THG at 631.499.1180 |
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