When you buy life insurance the basic agreement is that the insurance company will pay a death benefit if you die, and you must pay a premium according to the risk of dying. Each year the risk of dying becomes greater because you are older. Therefore the cost of the life insurance also increases each year. The type of life insurance you buy is simply a choice of how you wish to pay for this annually increasing cost.
Term insurance is a temporary form of life insurance. The premium you pay is determined by how long you want the policy to last. If you choose a 10 year term the premium will stay level for 10 years. Actually you are averaging out the increased cost of the insurance for that l0-year period. If you choose a 20 year term your premium will be a little higher than the 10 year term because you are averaging out the increased cost of insurance over 20 years. At the end of each term period and before the age of 65 you can renew your policy for another term period. Now the premium would be higher because you will be averaging out the next 10 or 20 years of increasing cost of insurance. You can purchase 5, 10, 15, 20, and 30-year level term policies. Term insurance is not very flexible, but it will fit specific needs very well at a low premium. Click here and request a quote!
This is a policy that is normally purchased for long period of time. The policy is extremely flexible and can fit a universe of possibilities. That is why they call it universal life. When you put premium into a universal life policy you are paying for the increasing cost of life insurance. Anything over this cost goes to an accumulation account that will earn a current rate of interest. These accumulations earn the interest on a tax-deferred basis and you are able to access the cash values via a partial withdrawal or a loan. When you take these distributions there is not a taxable event until you have taken out more than what you have paid into the policy totally. In other words, you are able to take out principal first and interest second. This is very unique with regard to the taxation of savings and investments. Any other tax-deferred account will be taxed interest first and principal comes out second. Furthermore the money is not available until age 59 1/2 in other tax deferred accounts.
With the universal life plan you do not have these restrictions. You can also change the amount of life insurance you are purchasing within the policy at any time. This allows you to make changes with the amount of life insurance you need as your circumstances change. You cannot increase your life insurance without insurability, but you are free to reduce the coverage as your mortgages and child growth needs change. Because of the flexibility of the universal life plan you can make it do what you want it to do by simply changing the premiums and the insurance amounts. In the long run you will have some amount of life insurance on you forever.
This type of policy is set up the same way as a universal life policy. However, the accumulation fund allows you to choose mutual fund type separate accounts much like you choose for 401K investments. In essence you are able to invest in securities on a tax-deferred basis and be able to take money out of the policy principal first and gains second. Because the separate accounts are securities you must be aware there are no guarantees. In addition you should put more than just the lowest premium into these policies to protect against having to take money out to pay for the cost of insurance within the policy when the stock market is down. Typically this type of policy is for people who need some life insurance but are more interested in saving into a tax-favored investment.
We have virtually any type of policy you could want. We continually shop to find competitive plans through a wide variety of companies. We like to say that we are in a position that if we start you on a plan that becomes non-competitive, we will be the first ones out telling you about it rather than hoping you don't find out about it. We attempt to represent our client's within the scope of what is being offered by the industry. We will analyze your needs and make recommendations that are suited to your circumstances. During the process you will be thoroughly educated so you can make an informed decision.
It all begins when you fill out the application. You must be through and complete in your answers. The company you have selected will be having a Para-Med contact you. This person will be giving you a physical exam, and will also be reviewing some of the health statements you made on your application. There is no cost to you for the exam. The company you have selected pays for it as part of your underwriting. Underwriting is a process the company does to select the class that you will qualify for (i.e. preferred non-smoker). They look at the application, your height and weight, your medical history, your family history, the Para-Med report. They may also request your personal Physicians records. The process normally takes about three to six weeks. Once the underwriting has been completed, the company will issue the policy as applied for, or make an offer to place you in another class rating.
*The Banner Life term life insurance premiums quoted here are based on the information provided for this quote. The quote is based on the assumption of excellent health and does not take into consideration occupational risks or other avocations. Approval and actual rates will be based upon the entire underwriting process, including but not limited to, information provided on the application, exam results and specific underwriting requirements and criteria. You can return a policy without obligation with 20 days of receipt. OPTerm policy form #RT-97. Issued by Banner Life Insurance Company, Rockville, MD. Not available in all states. Policy descriptions are not a statement of contract. Please refer to the policy form for full disclosure of benefits and limitations. Forms and policy provisions may vary by state.
OPTerm 10 issue ages 20-80. OPTerm 15 issue ages 20-70. OPTerm 20 issue ages 20-65. Premium rates vary by coverage amount: $100,000-$249,999 or $250,000 and above. Premiums quoted include $35 annual policy fee. Premiums are guaranteed to stay level for 10\15 or 20 years, respectively, and increase annually after initial guarantee period. OPTerm policies can be issued in preferred plus non-tobacco (no tobacco use in past 36 months), preferred (no tobacco use in the last 24 months), standard plus non-tobacco or standard non-tobacco (no tobacco use in past 12 months) and standard tobacco classes. Coverage can be renewed to age 95.
CDA Insurance is licensed and authorized to represent many Life Insurance Companies in Oregon & Washington.