Stillwell & Associates Life Insurance
Life goes on - prepare for it

However, we all know we won't live forever.

Life insurance was designed to make sure your survivors can afford the quality of life you want them to have after you’re gone.

Today's life insurance has many more features and benefits, including some that give you more financial flexibility during your lifetime. In fact, life insurance may now serve as the foundation for many of the financial decisions you make.

As you consider the information in this brochure, please keep in mind that the protections and guarantees we mention are subject to the claims-paying ability of the issuing insurance company.

The facts of life (insurance, that is)
When an insured person dies, life insurance pays a death benefit to that person's beneficiary. Although these proceeds can be used for anything, they're often meant for a particular purpose:

To cover final expenses, such as funeral costs, taxes or remaining debts
To replace financial or other support that the insured person contributed
To provide an inheritance or fund a foundation, endowment or charitable gift

"Term" and "Perm" Term life and permanent life, the two basic types of life insurance, both pay an income tax-free death benefit. Term life covers you for a limited period, while permanent life provides lifelong coverage.

Permanent life insurance policies also have a cash value that has the potential to increase over time.

Term life: maximum protection for a low premium
Term life insurance provides coverage for a specific time period, normally 10, 20 or 30 years. It pays a death benefit if you die within that term.

This means you can choose a term life policy to cover you only when you need extra financial protection - until the mortgage is paid off, for example, or until your youngest child is age 21.

Term life is one of the least expensive ways to buy life insurance, with premiums that stay level for the policy's term. If you opt to renew your coverage at the end of the term, the premium may increase at that time. (Your insurer may require evidence of your good health before approving renewal.)

Although term life insurance doesn't build cash value, some companies offer policies that can be converted to permanent life without a medical exam. Ask your investment professional about conversion privileges.

Permanent life: advantages during your lifetime
You don't have to die to benefit from your life insurance policy. Unlike term life, permanent life insurance offers you financial flexibility during your lifetime.

That's because you have the option to borrow from your policy, using its cash value as collateral. Some permanent life policies even allow zero-interest loans after a certain number of years.

This accessibility can make your permanent life policy a source of funds if you want extra income, incur a sizable bill, need to pay college tuition or make a home down payment. You're not required to repay what you borrow. However, the death benefit will be reduced by any unpaid loan balance, accrued interest and partial withdrawals. Also, if the policy lapses with a loan outstanding, loan amounts are treated as distributions and may be subject to income tax.

Speaking of taxes, permanent life typically receives favorable tax treatment:

Income tax is deferred on any growth in cash value
Tax deferral of accumulated cash values
As with term life, the death benefit is income tax free to your beneficiary
When policy ownership is properly structured, you may be able to exclude the death benefit from your taxable estate.

Some types of permanent life insurance offer survivorship benefits. With this type of insurance, two people are insured and the death benefit is paid at the time of the second insured's death.

We recommend consulting your attorney or tax advisor for answers to specific questions you may have, since Nationwide Life Insurance Company and its representatives do not give legal or tax advice.

Variations of permanent life
Permanent life insurance comes in several forms to suit different goals, financial circumstances and levels of risk tolerance. Your investment representative will help you choose the kind that best suits your situation: whole life, universal life or variable universal life.

Whole life: simplicity and long-term protection
The premiums for whole life insurance stay the same over the life of the policy. Other features add to its appeal for conservative clients:

A guaranteed death benefit
Tax advantages
Guaranteed cash value with conservative accumulation
Long-term protection
Loan provisions
The potential for dividends with some policies

Universal life: flexibility to cope with changes
Universal life (UL) insurance provides a guaranteed death benefit (if certain premium levels are met), tax advantages and provision for loans and partial withdrawals. It also has more flexibility than whole life, with features that let it adapt to changes in the financial marketplace and your personal circumstances:

Interest-sensitive growth
Growth potential based on the insurance company's portfolio of investments
Flexible premium payments and death benefits

*These coverage's are not available in all states.

Stillwell & Associates Life Insurance Life goes on - prepare for it

Stillwell & Associates Life Insurance
Life goes on - prepare for it