Life Insurance Services Overview
The right life insurance strategy can play a key role in helping you achieve your financial goals. In addition to helping replace lost income or secure your estate and legacy, life insurance can also be useful in providing education funding for future generations. Here at Magellan Financial, we offer a wide array of life insurance services for every stage of your life, and help you answer any questions you may have.
What is Life Insurance?
A life insurance policy is a contract between the owner of the policy and an insurance company. When you buy a policy, you name the person to be insured (who may be you or someone else) and you select the amount of insurance you desire. You also name a beneficiary. When the person who is insured dies — if your policy is in effect — the insurance company will pay the in force amount of insurance (less any outstanding loans and withdrawals) to the person or persons you named as the beneficiaries. This amount is called the “death benefit.”
Is Life Insurance Right for You?
Policies are designed for people who:
- Want to replace income that is lost due to death
- Seek liquidity to cover expenses, debts and taxes at death
- Want assets to fund retirement, education and other family goals in the case of a premature death
- Value tax-efficient income potential to supplement retirement, education, convalescent care or other financial needs
Types of Life Insurance Policies
Generally, life insurance is offered in two different forms: “term insurance” and “permanent insurance” that may generate what is commonly known as “cash value” (and so is called “cash value insurance”). Although both types of insurance provide a death benefit upon the death of the insured, each type is used to help meet different insurance and financial needs. Your Financial Advisor or Wealth Insurance Specialist can help you decide which policy fits your needs best.
Types of Payment Policies
Limited payment policy premiums are only required for a specified period of years, such as 10, 20, or 30 years, or until the insured reaches a specified age, such as 65, beyond which premiums will not be required. These policies usually have a guaranteed death benefit. One of the more common forms of a limited payment life policy is the single-premium policy. It is offered both as a “fixed” policy (that is, the cash value is held in the general account of the insurance company) and as a “variable” insurance policy (that is, the cash value is held in a separate account that is segregated from the general assets of the insurance company).
Second-to-die policies are a type of insurance policy which covers the lives of two individuals and is called a “second-to-die” or “survivorship” policy. All of the types of policies discussed above can be purchased as a form of a second-to-die policy. Note that the death benefit amount is paid only after the death of the second individual (that is, the individual who is the second to die) as designated by the policy, and premiums may be required after the first insured’s death.
Whether you’re planning for retirement or already retired, Contact our team of Financial Advisors about how life insurance can fit into your plans.
Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies. Not available in all states.
Variable Life Insurance (VLI) is an insurance product and should not be considered an investment, savings, or retirement plan. Nevertheless, VLI cash values and death benefits may fluctuate, so the purchaser should be able to assume investment risks.
Guarantees are based on the claims-paying ability of the issuing insurance company.
Wells Fargo Advisors Financial Network and its affiliates do not provide legal or tax advice. Transactions requiring tax consideration should be reviewed carefully with your accountant or tax advisor. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.
Telephone No.6104375650