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Product Information

Life insurance is one of the most important purchases a person will make. However, choosing from one of the many plans available can be a difficult process for your client. Age, health, type, and amount of insurance are all factors that determine the cost and availability of insurance. As an agent, your ability to effectively find coverage that meets your clients’ needs, at a cost they can afford can be challenging. Master Financial is committed to assisting you with your clients by offering the following products:

 

Term Life

This type is the most basic form of life insurance. Coverage is specified for a period of time, up to 30 years, and provides a death benefit only. The death benefit is paid if the Insured dies during the specified period. Premiums generally remain constant throughout the duration of the contract, however, it doesn’t allow for cash value accumulation.This type of insurance is useful if the client is looking for a low-cost option or if they only need coverage for a certain amount of time.

 

Universal Life

In addition to providing protection in case of death, a Universal Life policy also provides a savings, or cash value, component. This cash value accumulates from portions of the premium that the insurance company invests at an interest rate they determine. Although the insured has no control over how the funds are invested, they do have the flexibility, within limits, of adjusting their premium payments and death benefits even while the policy is in effect. Universal Life Insurance costs less initially but does not guarantee cash value or death benefit.
It is possible to structure many universal life policies so that the invested cash value will eventually cover the premiums. You would then have full life insurance coverage without having to pay any additional premiums, as long as the cash-value account balance remains sufficient to pay for the pure cost of insurance and any other expenses and charges.
Access to cash values through borrowing or partial surrenders can reduce the policy’s cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. This type of insurance is for those clients that find having the flexibility to change the amount of their insurance as their needs for insurance change while accumulating tax-deferred savings ideal.

Whole Life

For those clients who enjoy the peace of mind of safety and guarantees, Whole Life is a very appealing option. These policies generally offer fixed premiums, guaranteed death benefits and are designed to build tax deferred cash value. For those reasons, a whole life insurance policy can be described as providing life insurance protection with a savings feature. Although the premiums are generally higher, it provides coverage on the insured for the insured’s entire life as long as premiums are paid and the policy has not been surrendered. This type of insurance is useful if the client wants to ensure they have a life insurance policy in place for their entire lifetime and can comfortably afford the premiums.

 

Buy-Sell Agreements

A buy–sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business.

It may be thought of as a sort of premarital agreement between business partners/shareholders or is sometimes called a “business will”. An insured buy–sell agreement (triggered buyout is funded with life insurance on the participating owners’ lives) is often recommended by business-succession specialists and financial planners to ensure that the buy–sell arrangement is well-funded and to guarantee that there will be money when the buy–sell event is triggered.

 

Disability Insurance

Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example the inability to maintain composure as with psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits, and long-term disability benefits. Statistics show that in the US a disabling accident occurs on average once every second. In fact, Nearly 18.5% of Americans are currently living with a Disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement.

 

Estate Planning

Estate planning is the process of anticipating and arranging for the disposal of an estate during your life. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses. Guardians are often designated for minor children and beneficiaries in incapacity.

 

Key Person Insurance

Key person insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company. You definitely need to consider key person insurance on those people.Here’s how key person insurance works: A company purchases a life insurance policy on its key employee(s), pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work.
The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner. In a tragic situation, key person insurance gives the company some options other than immediate bankruptcy.

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