Term: This is insurance where the annual premium is paid only in relation to the term of protection, or in other words, there is no accumulated value. Your premiums tend to be lower, especially if you are in good health, don’t smoke and are still in your mid to upper 40’s. This type of insurance can be used to guarantee a mortgage, business debts, educational savings, and even provide additional funds for retirement.
Variable Universal Life: This is life insurance with an accumulated value and which can be invested in mutual funds, indexed to the market When the stock market is ticking upwards, you will have the ability to accumulate funds which can then be used for education, accelerated mortgage payment, or additional monies for your retirement.
Purchase Commitment/Sale of Ownership: This is the ideal solution for the sole survivors of a business after one of the partners has died. With this arrangement, the surviving partners can purchase the ownership from the spouse of the deceased partner. With the type of coverage:
– The company pays the premiums – The beneficiary is the company – The overall objective is to have money available to purchase the ownership/shares from the spouse of the deceased partner.