Investment & Insurance Products

EXPANDED MEMBER SERVICES - LIFE INSURANCE

Long Term Care Insurance | Survivorship | Term Life Insurance |
Universal Life Insurance | Whole Life Insurance

Long Term Care Insurance

Payment of long term care expenses in case of extended illness.

Survivorship - Second to Die Life Insurance

What is Second to Die Life Insurance?

Second-to-die is a life insurance policy that covers the lives of two people. The most common use is coverage on a husband and wife. But it can be used any time that there will be a financial loss suffered when the second of two people die.

How does the product work?

Second-to-die pays a death benefit only after the death of the second insured.

When the insureds are spouses, the proceeds are usually used to pay off the estate taxes due and any settlement costs which may be due at the death of the surviving spouse, so that heirs do not need to liquidate the estate to pay these costs. Federal estate tax rates are as high as 55%.

What are the choices consumers have within the product?

As with single life policies, consumers need to choose:

• The face amount of the policy.
• Who should own the policy.
• Who will be the beneficiary.
• The type of policy (i.e., traditional whole life, universal life, or variable life).

What are the advantages of a second to die policy?

Premium payments are lower than they would be for the same total amount of coverage under two single life policies.

When should it be used?

Family Market: When there is concern over the payment of settlement costs, at the death of a surviving spouse particularly when the estate is comprised of non-liquid assets (i.e. property, land, farms, rental property, etc.) which could not be sold at a fair price quickly enough to pay estate expenses.

Business Market: For certain Buy-Sell arrangements to provide cash so that the business can redeem its stock.

For Key Employee insurance to protect against the death of two key employees.

For Executive Bonus plans, as an attractive fringe benefit. Premiums are income tax deductible to the employer, provided they constitute reasonable compensation.

What should a consumer look for in selecting a second-to-die life product?

Policies with flexibility to allow the policy owner to vary the death benefit as estate values change.

A company with strong ratings.

Term Life Insurance

What is Term Life Insurance?

Term insurance is a life insurance policy that pays off only if the "insured" dies during the term of the policy. At the end of the term, the policy terminates and no death benefit is paid.

How does the product work?

You pay either a level premium or an increasing premium (depending upon the policy you choose). The company will pay to the beneficiary face amount of the policy if you die within the policy's term.

What are the choices consumers have within the product?

Consumers need to choose:

• The face amount of the policy.
• Who should own the policy.
• Who will be the beneficiary.

Consumers can choose from a series of different terms usually offered, for example: 1,3,5,7,10,15 or 20 years.

Consumers can choose between a level or increasing premium.

With a level premium, the premium stays the same for the life of the policy.

With an increasing premium, the consumer is actually purchasing a series of one year policies. The premiums start out low, then grow each year.

How do I know which Insurance Company to buy from?

We currently offer term insurance through many companies. We only offer insurance products from well rated companies. We will comparison shop for the best rates among our extensive Company and Product Portfolio to ensure you are getting the best value.

What are the features of term life insurance?

Premiums pay only for pure insurance protection.

Policies are often convertible to permanent cash value life insurance without another physical. Let us know if this is a feature you want.

When should it be used?

A young family that needs protection, but does not have much money to spare.

For someone with a specific goal in a set time period that he or she wants met in the event of their untimely death, such as putting a child through college, paying off a mortgage, or providing for final expenses.

For someone who has no other insurance need after the term expires or has other permanent insurance to cover those needs.

Business applications include:

• Coverage on the owner, to allow the heirs to buy back stock.
• Coverage on key employees.
• As an employee benefit.
• To cover outstanding business loans.

What should a consumer look for in selecting a term life product?

A policy with:

• A convertibility feature. Convertibility allows the consumer to get a permanent life insurance policy without having to take another physical.
• A living benefit feature. In the event of a terminal illness, you can receive a portion of the policy's proceeds before death, to help pay medical bills or ongoing care.
• A disability waiver of premium.
• A company with strong claims paying ratings.

What alternatives does a consumer have other than this type of product?

Other life insurance types:

• Traditional whole life.
• Variable life.
• Universal life.

Other types of life insurance will cost more to provide the same amount of protection, however, they all have a cash value.

Universal Life Insurance

What is Universal Life Insurance?

Universal life is a cash value life insurance policy that combines some of the features of traditional whole life (tax deferred cash buildup, death benefit) with premium and face amount flexibility.

How does the product work?

When the premium is received, a sales charge is deducted and the balance is credited to the owner's "account value." The account value is also credited daily with interest. The interest rate is variable.

Each month, deductions are made from the account value for insurance (mortality) costs and contract fees and charges.

The owner can make periodic premium payments or, if sufficient account value exists, skip premiums and let the monthly mortality and other charges be deducted from the account value. However, when the account value is no longer sufficient to pay these charges, the policy will lapse, and additional premiums will be required to keep it in force.

What are the choices consumers have within the product?

Universal Life is a highly flexible type of insurance policy.

A customer can within certain limitations:

• Increase or decrease premium payments, and make additional lump sum payments to the policy.
• Increase or decrease the policy face amount as their protection needs change.
• Change the death benefit option depending on whether he or she needs accumulated cash values for income, or an increased death benefit for their family.

This flexibility should be considered in light of any potential tax consequences, which could occur as a result of contact changes.

What are the features of the product?

Universal Life Insurance generally can provide life insurance coverage at a lower premium than whole life insurance.

Universal Life allows the owner to earn a market rate of interest on account values.

Flexible premiums mean that payments can be adjusted to suit an owner's current financial circumstances while maintaining needed coverage.

The adjustable face amount feature allows the owner to accommodate changing protection needs without having to purchase additional policies.

When should it be used?

For young families:

• Seeking to maintain their family's standard of living in the event of the death of the primary income earner.
• Who want a policy that can grow as their family and income does.
• Any individual concerned with death benefit guarantees.

What should a consumer look for in selecting a universal life product?

• A high quality bond portfolio backing your account value.
• Competitive interest rates with guaranteed minimums.
• A company with strong claims paying ratings.
• Reasonable cost, fee, and charge levels.

What alternatives does a consumer have other than this type of product?

Other life types of life insurance:

• Term.
• Variable.
• Traditional Whole Life.

Whole Life Insurance

What is Whole Life Insurance?

Traditional Whole Life or permanent insurance provides lifetime insurance protection with guaranteed cash values, fixed premiums and death benefits as long as premiums are paid.

What are the choices consumers have within the product?

Premium payments: Premiums can either be level for the entire term of the policy, or start out lower in the first few years (usually five), then increase to a permanent level premium.

Additional premiums can be paid for additional coverage through the use of riders.

What are the features of whole life insurance?

Cash value accumulates income tax-deferred.

Death benefits are usually income tax free.

Accelerated Death Benefits allows access, under certain conditions, to receive death benefit proceeds before you die.

Cash value can be borrowed. Loans will incur interest and any unpaid loan and accumulated interest at the time of death is deducted from the death benefit proceeds and will reduce the amount of death benefit paid to beneficiaries.

When should whole life be used?

If you want insurance protection for a long period of time and can pay a fixed premium.

If you desire a permanent life insurance policy with guarantees and fixed premiums.

What should a consumer look for in selecting a whole life product?

A company with high ratings from the major ratings agencies.

Generally, riders will increase the flexibility to provide additional benefits to the whole life insurance policy. Riders that should be considered include:

• Paid Up Insurance provides the option to pay in additional lump sum premiums to increase the life insurance protection should the need arise.
• Disability waiver of premium waives premium payments if the insured becomes disabled.
• Accidental Death Benefit provides for an additional benefit in the case of death as a result of an accident.
• Accelerated Death Benefits allow access under certain conditions to receive death benefit proceeds before you die.

All Securities through Money Concepts Capital Corp. Member NASD/SIPC
OSJ Branch: 7121 Fairway Drive, Palm Beach Gardens, FL 33418. Ph. (561) 472-2000.
Investments are not FDIC or NCUSIF insured. May Lose Value. No Bank or Credit Union Guarantee.