Life Insurance Needs

 

Insurance is a tool to help manage risks associated with unfavorable events.  It cannot prevent the event from happening, but it can help ease the financial losses associated with those events. VBC has been selling insurance from our start. 

 

VBC will assist you in constructing an insurance plan that best suits your individual needs.  We begin by performing an insurance audit that takes into account your overall financial picture.  By evaluating your current coverage, the VBC insurance representatives can help determine existing risk exposure and suggest the right mix of insurance needed.

 

Traditional forms include:

 

Whole Life is standard permanent insurance that has a fixed premium, a guaranteed cash value, a guaranteed death benefit and includes a minimum guaranteed interest rate to hold the entire product together.

 

Limited Pay Life is essentially a whole life policy with a shortened premium-paying period.  The most common is a life paid-up at 65 policy where premiums are paid to age 65.

 

Endowment policy is one where at death benefit and cash

surrender value are the same at a specific date (e.g., 20 years from the date of issue).

 

Annually Renewable Term is also known as temporary insurance.  It renews each year with the payment of the premium due and provides a specific death benefit for the year.

 

Decreasing Term is a form of term insurance where the premium remains but the death benefit decreases.  These policies are generally sold to cover home mortgages.

Non-traditional forms include:

 

Universal Life is composed of the same elements as permanent insurance but the elements are unbundled so the risk charge, expense charge, administrative charge and credited interest is shown in the contract and/or the annual policy statement.

 

Variable Life has whole life features, guaranteed premium and guaranteed death benefit, but combines the protection and savings functions with the growth potential of mutual-fund type investments.  The cash value is not guaranteed and the face amount varies in relation to the earning.  The death benefit in any year will never be less than the initial face amount.

 

Variable Universal Life combines the flexibility of universal life with the investment aspect of variable life.  Only the mortality rate and the right to keep the policy in force are guaranteed.

 

Adjustable Life is a product that includes aspects of whole life, term and universal life.  Adjustable life provides the policy owner the option of making various adjustments to the policy as their circumstances and needs change.