Life Insurance 101

01

Indexed universal life (IUL) insurance is a type insurance policy that offers a permanent death benefit and a cash value component

IUL

Whole life insurance is a type of permanent life insurance that covers the policyholder for their entire life as long as premiums are paid.

02

Whole LIfe

Term life insurance is a contract between an individual and an insurance company that provides coverage for a set period of time, usually between 10 and 30 years

03

Term

CBO term life is a type of term policy that offers a Cash Back Option (CBO) at the end of the policy term

04

CBO Term

Life insurance 101

Accidental death and dismemberment is a type of life insurance that pays out a death benefit if they die in an accident

05

ADB

Benefits:

Accidental death and dismemberment

• Cheapest Coverage
• NO MEDICAL CHECK
• NO WAIT PERIOD

Carriers:

• Americo
• mutual of omaha

(can Add Return of Premium)

Who:

• age 29-59
• knockout for a ton of medical reasons
• beef up the death benefit of WL
• Wants something in place but can't afford term

Term life is like renting an apartment, if you have ever rented an apartment before, you know that you lock in a lease for 10/12/15 months whatever it may be, and your monthly payment is going to be locked in for that entire time. At the end of the lease you have the option of renewing at the new cost or simply moving to another location. So term is the exact same thing except instead of 10/12/15 months it's 10-30 years

• High death Benefit
• Cheaper than IUL/Whole life
• living benefits
• coverage for set period of time

• Mutual Of Omaha (up to 300k) Simplified Issue
• Americo (up to 450k) Simplified Issue
• Ethos (up to 2 Million)
• SureBridge (up to 250k) Simplified Issue

• People on a budget
• Needing to cover assets (Home/boats/student loans)
• Small business owners for business loans or affordable option for all employees

CBO Term Policy (Cash Back Option)

Carriers:

Benefits:

• Americo

CBO 50 CBO 100

• Premiums paid back!
• Living benefits
• Cheaper than Whole Life
• Higher death benefit

Who?

• Anyone with trouble saving
• Wants to overfund a IUL in 10 to 30 years
• mortgage protection with a lump sum

at the end

• Planning for a big purchase

in the future

Like a savings account on steroids

Benefits:

• Builds cash value
• ndexed with Moody S&P500 with floor
• Tax free access to cash value
• No impact to Social Security
• chronic, critical, and terminal illness

• Flexibility with premium

• Higher death benefit for lower premium

Carriers:

• Mutual of Omaha - 300k Simple Issue
• Americo - 450k Simple Issue
• Ethos - 1 Million Simple Issue
• F&G - Children IULs

90%

IUL is really a mesh between the two, like term life and whole life had a baby. You're going to get the best benefits from both sides in-order to create one policy.

Who:

• Focus on cash accumulation
• Wants a high death benefit that is permanent
• Wants to fund business in 5 to 10 years
• Healthy Individuals with no Criminal History

Whole life is exactly what it sounds like, it's going to cover you for your whole life, you never have to renew your policy and your rate is going to be locked in for life.

Benefits:

• Lifetime coverage
• death benefit
• guaranteed cash value growth
• higher acceptance than IUL
• Fixed premium

Carriers:

Who:

• Mutual of Omaha 50k Simple Issue (option of adding accidental death benefit)
• Americo - 100k Simple Issue (ADB included, option of childrens term rider and waiver of premium)
• Ethos - 100k Simple issue (will and trust included) Option to switch to TruStage

• Not as worried about building cash value
• Has some health concerns/criminal history
• Client is looking for just burial coverage
• Business owners looking for "key person" insurance