Life Insurance Basics - Raymond James
Raymond James &Associates, Inc.Larry Zebko31500 Northwestern Hwy.Suite 150Farmington Hills, MI 48334248-932-5450Larry.Zebko@RaymondJames.comLife InsuranceBasicsOctober 22, 2013
Life Insurance BasicsLife insurance is an agreement between you(the insured) and an insurer. Under the termsof a life insurance policy, the insurer promisesto pay a certain sum to a person you choose(your beneficiary) upon your death, inexchange for your premium payments. Properlife insurance coverage should provide youwith peace of mind, since you know that thoseyou care about will be financially protectedafter you die.Proper life insurancecoverage should provideyou with peace of mind,since you know that thoseyou care about will befinancially protected afteryou die.The many uses of life insuranceOne of the most common reasons for buyinglife insurance is to replace the loss of incomethat would occur in the event of your death.When you die and your paychecks stop, yourfamily may be left with limited resources.Proceeds from a life insurance policy makecash available to support your family almostimmediately upon your death. Life insurance isalso commonly used to pay any debts that youmay leave behind. Life insurance can be usedto pay off mortgages, car loans, and creditcard debts, leaving other remaining assetsintact for your family. Life insurance proceedscan also be used to pay for final expenses andestate taxes. Finally, life insurance can createan estate for your heirs.How much life insurance do youneed?Your life insurance needs will depend on anumber of factors, including whether you'remarried, the size of your family, the nature ofyour financial obligations, your career stage,and your goals. For example, when you'reyoung, you may not have a great need for lifeinsurance. However, as you take on moreresponsibilities and your family grows, yourneed for life insurance increases.There are plenty of tools to help youdetermine how much coverage you shouldhave. Your best resource may be a financialprofessional. At the most basic level, theamount of life insurance coverage that youneed corresponds directly to your answers tothese questions: What immediate financial expenses (e.g.,debt repayment, funeral expenses) wouldyour family face upon your death? How much of your salary is devoted tocurrent expenses and future needs? How long would your dependents needsupport if you were to die tomorrow? How much money would you want to leavefor special situations upon your death, suchas funding your children's education, giftsto charities, or an inheritance for yourchildren?Since your needs will change over time, you'llneed to continually re-evaluate your need forcoverage.How much life insurance canyou afford?How do you balance the cost of insurancecoverage with the amount of coverage thatyour family needs? Just as several variablesdetermine the amount of coverage that youneed, many factors determine the cost ofcoverage. The type of policy that you choose,the amount of coverage, your age, and yourhealth all play a part. The amount of coverageyou can afford is tied to your current andexpected future financial situation, as well. Afinancial professional or insurance agent canbe invaluable in helping you select the rightinsurance plan.What's in a life insurancecontract?A life insurance contract is made up of legalprovisions, your application (which identifieswho you are and your medical declarations),and a policy specifications page that describesthe policy you have selected, including anyoptions and riders that you have purchased inreturn for an additional premium.Provisions describe the conditions, rights, andobligations of the parties to the contract (e.g.,the grace period for payment of premiums,suicide and incontestability clauses).The policy specifications page describes theamount to be paid upon your death and theamount of premiums required to keep thepolicy in effect. Also stated are any riders andoptions added to the standard policy. Someriders include the waiver of premium rider,which allows you to skip premium paymentsduring periods of disability; the guaranteedinsurability rider, which permits you to raisethe amount of your insurance without a furthermedical exam; and accidental death benefits.The insurer may add an endorsement to thepolicy at the time of issue to amend aprovision of the standard contract.Types of life insurance policiesThe two basic types of life insurance are termPage 2 of 9, see disclaimer on final page
Note: Variable life andvariable universal lifeinsurance policies areoffered by prospectus,which you can obtain fromyour financial professionalor the insurance company.The prospectus containsdetailed information aboutinvestment objectives, risks,charges, and expenses. Youshould read the prospectusand consider thisinformation carefully beforepurchasing a variable life orvariable universal lifeinsurance policy.life and permanent (cash value) life. Termpolicies provide life insurance protection for aspecific period of time (subject to theclaims-paying ability of the insurer). If you dieduring the coverage period, your beneficiaryreceives the policy death benefit. If you live tothe end of the term, the policy simplyterminates, unless it automatically renews fora new period. Term policies are available forperiods of 1 to 30 years or more and may, insome cases, be renewed until you reach age95. Premium payments may be increasing, aswith annually renewable 1-year (period) term,or level (equal) for up to 30-year term periods.Permanent insurance policies provideprotection for your entire life, provided you paythe premium to keep the policy in force(subject to the claims-paying ability of theinsurer). Premium payments are greater thannecessary to provide the life insurance benefitin the early years of the policy, so that areserve can be accumulated to make up theshortfall in premiums necessary to provide theinsurance in the later years. Should thepolicyowner discontinue the policy, thisreserve, known as the cash value, is returnedto the policyowner, subject to applicablesurrender or early withdrawal charges.Permanent life insurance can be furtherbroken down into the following basiccategories: Whole life: You generally make level(equal) premium payments for life. Thedeath benefit and minimum cash value arepredetermined and guaranteed. Anyguarantees associated with payment ofdeath benefits, income options, or rates ofreturn are based on the claims-payingability of the insurer. Universal life: You may pay premiums atany time, in any amount (subject to certainlimits), as long as policy expenses and thecost of insurance coverage are met. Theamount of insurance coverage can bechanged, and the cash value will grow at adeclared interest rate, which may vary overtime. Variable life: As with whole life, you pay alevel premium for life. However, the deathbenefit and cash value fluctuate dependingon the performance of investments in whatare known as subaccounts. A subaccountis a pool of investor funds professionallymanaged to pursue a stated investmentobjective. The policyowner selects thesubaccounts in which the cash valueshould be invested. Variable universal life: A combination ofuniversal and variable life. You may paypremiums at any time, in any amount(subject to limits), as long as policyexpenses and the cost of insurancecoverage are met. The amount ofinsurance coverage can be changed, andthe cash value goes up or down based onthe performance of investments in thesubaccounts.Your beneficiariesYou must name a primary beneficiary toreceive the proceeds of your insurance policy.You may name a contingent beneficiary toreceive the proceeds if your primarybeneficiary dies before the insured. Yourbeneficiary may be a person, corporation, orother legal entity. You may name multiplebeneficiaries and specify what percentage ofthe net death benefit each is to receive. Youshould carefully consider the ramifications ofyour beneficiary designations to ensure thatyour wishes are carried out as you intend.Generally, you can change your beneficiary atany time. Changing your beneficiary usuallyrequires nothing more than signing a newdesignation form and sending it to yourinsurance company. If you have namedsomeone as an irrevocable (permanent)beneficiary, however, you will need thatperson's permission to adjust any of thepolicy's provisions.Where can you buy lifeinsurance?You can often get insurance coverage fromyour employer (i.e., through a group lifeinsurance plan offered by your employer) orthrough an association to which you belong(which may also offer group life insurance).You can also buy insurance through alicensed life insurance agent or broker, ordirectly from an insurance company.Any policy that you buy is only as good as thecompany that issues it, so investigate thecompany offering you the insurance. Ratingsservices, such as A. M. Best, Moody's, andStandard & Poor's, evaluate an insurer'sfinancial strength. The company offering youcoverage should provide you with thisinformation.Page 3 of 9, see disclaimer on final page
Note: Any guaranteesassociated with payment ofdeath benefits, incomeoptions, or rates of returnare subject to theclaims-paying ability of theinsurer. Policy loans andwithdrawals will reduce thepolicy's cash value anddeath benefit and maycause the policy to lapse.Withdrawals may be subjectto surrender charges andincome tax, and a 10%penalty may apply towithdrawals from a modifiedendowment contract if madeunder age 59½.Note: Variable life andvariable universal lifeinsurance policies areoffered by prospectus,which you can obtain fromyour financial professionalor the insurance company.The prospectus containsdetailed information aboutinvestment objectives, risks,charges, and expenses. Youshould read the prospectusand consider thisinformation carefully beforepurchasing a variable life orvariable universal lifeinsurance policy.*Dividends are notguaranteed.Comparison of Types of Life InsuranceTermWhole LifeUniversal Life Variable LifeVariableUniversal LifePremiumPremiumsincrease ateach r liferenewableuntil at leastage 70; forsome policies,up to age 95For lifeFor lifeFor lifeMay beguaranteed,depending onpolicyGuaranteedMay beguaranteed,depending onpolicyMay increase Can bewith dividends* increased ordecreasedVaries relativeto cash valueinvestmentreturnsCan beincreased ordecreased;varies relativeto cash aranteedDeath benefit GuaranteedCash valueNoneGuaranteedGuaranteedminimuminterest rateMay increase Varies basedwith dividends* on interestratesPolicy loansallowed?Not applicable YesCashwithdrawalsallowed?Cash valueaccountgrowthFluctuates with rmanceYesYesYesSame aswhole life, butusuallyavailable atlower netinterest rate(i.e., pay theinterest rateand get acredit back tothe policy)Same aswhole life, butusuallyavailable atlower netinterest rate(i.e., pay theinterest rateand get acredit back tothe policy)Same aswhole life, butusuallyavailable atlower netinterest rate(i.e., pay theinterest rateand get acredit back tothe policy)Not applicable NoYesNoYesNo cash value Insureraccountdeterminesguaranteedcash valueand declaresdividendsbased onperformanceof its generalinvestmentportfolio*Insurerdeterminescash valueinterestcrediting ratesbased oncurrent interestrate returns tothe companyCash valueaccountgrowthdepends uponthe investmentperformanceof thesubaccountsyou chooseCash valueaccountgrowthdepends uponthe investmentperformanceof thesubaccountsyou chooseMay be able toborrow up to100% of totalcash surrendervalue lessannual loaninterest ratePage 4 of 9, see disclaimer on final page
How Traditional Whole Life Insurance Works1.2.3.4.5.6.7.The premium you "pour in" is fixed for the life of the policy. As you age, the cost of insuringyour life increases. However, your premium stays the same, because the company projectsthis expense in advance and factors it into the premium at the onset.As you pay your premium, the insurance company deducts all of its expenses, premiumtaxes, and the cost of pure insurance (net amount of risk coverage), or mortality cost.The remainder of your premium represents a portion of the insurance company's investmentportfolio. Your cash value account is credited with a fixed amount (predetermined by yourcontract) at the end of each premium period.Like water in a tank, the level of your cash value rises over time.As the cash value increases, the amount of risk coverage (or pure insurance) in the policydecreases.When you die, your beneficiary receives the "full tank" of the policy amount, which is the sumof the cash value and the pure insurance.You may take a policy loan in an amount not to exceed the policy's cash surrender valueless the annual loan interest. Repayment replenishes your cash value; any loan balanceoutstanding (plus interest due) at the time of your death would be deducted from the policyamount.Page 5 of 9, see disclaimer on final page
Note: Variable life insurancepolicies are offered byprospectus, which you canobtain from your financialprofessional or theinsurance company. Theprospectus containsdetailed information aboutinvestment objectives, risks,charges, and expenses. Youshould read the prospectusand consider thisinformation carefully beforepurchasing a variable lifeinsurance policy.How Variable Life Insurance Works1.2.3.4.5.6.7.8.The premium you "pour in" is fixed for the life of the policy. As you age, the cost of insuringyour life increases. However, your premium stays the same, because the company projectsthis expense in advance and factors it into the premium at the onset.As you pay your premium, the insurance company deducts all of its expenses, premiumtaxes, and the cost of pure insurance (net amount of risk coverage), or mortality cost.The remainder of your premium is credited to your cash value account.You choose the subaccounts in which your cash value is invested. These accounts aresecurities-based, though many policies offer a fixed account option.Significant growth in your subaccount investments can "pump up" your cash value.With the potential for rapid growth comes the possibility of loss. If your investment choicesperform poorly, much of your cash value could go "down the drain."However, as long as you pay your premium, your policy amount will be guaranteed for theminimum amount (stated in your policy), regardless of the investment performance of yourcash value account.You may take policy loans in an amount not to exceed the policy's cash surrender value lessthe annual loan interest. Repayment replenishes your cash value; any loan balanceoutstanding (plus interest due) at your death is deducted from the policy amount paid to yourbeneficiary.Page 6 of 9, see disclaimer on final page
How Universal Life Insurance Works1.2.3.4.5.6.7.You decide (up to limits regulated by federal tax law) when and how much premium paymentto "pour in." The minimum premium is based on insurance company expenses, premiumtaxes, and the cost of pure insurance for your policy.As you pay your premium, the insurance company deducts its sales expenses and premiumtaxes.The remainder of your premium is credited to your cash value account. Each month, thecompany charges this account for its other expenses and the cost of pure insurance (netamount of risk coverage), or mortality cost.Your cash value earns interest at a rate that fluctuates based on the rates earned by asegregated portfolio within the insurance company's general account. A minimum(guaranteed) interest rate will be stated in your policy.If the company's portfolio earns more than the guaranteed interest rate, the company creditsthe excess interest to your policy.If your remaining cash value is not sufficient to cover expenses and the cost of pureinsurance, and you do not pour in more premium, the policy amount may then have to bereduced, or your policy will lapse. This would be similar to crushing the container at the top.You may take a policy loan in an amount not to exceed the policy's cash surrender valueless the annual loan interest. Repayment replenishes your cash value; any loan balanceoutstanding (plus interest due) at your death is deducted from the policy amount paid to yourbeneficiary.Page 7 of 9, see disclaimer on final page
Note: Variable life insurancepolicies are offered byprospectus, which you canobtain from your financialprofessional or theinsurance company. Theprospectus containsdetailed information aboutinvestment objectives, risks,charges, and expenses. Youshould read the prospectusand consider thisinformation carefully beforepurchasing a variable lifeinsurance policy.How Variable Universal Life Insurance Works1.2.3.4.5.6.7.8.You decide (up to limits regulated by federal tax law) when and how much premium paymentto "pour in." The minimum premium is based on insurance company sales expenses,premium taxes, and the cost of pure insurance for your policy.As you pay your premium, the insurance company deducts its sales expenses and premiumtaxes.The remainder of your premium is credited to your cash value account. Each month, thecompany charges this account for its other expenses and the cost of pure insurance (netamount of risk coverage), or mortality cost.You choose the subaccounts in which your cash value is invested. These accounts aresecurities-based, though many policies offer a fixed account option.Significant growth in your subaccount investments can "pump up" your cash value.With the potential for rapid growth comes the possibility of loss. If your investment choicesperform poorly, your cash value could go "down the drain."If your remaining cash value is not sufficient to cover expenses and the cost of pureinsurance, and you do not pour in more premium, the policy amount may then have to bereduced, or your policy will lapse. This would be similar to crushing the container at the top.You may take a policy loan in an amount not to exceed the policy's cash surrender valueless the annual loan interest. Repayment replenishes your cash value; any loan balanceoutstanding (plus interest due) at your death is deducted from the policy amount paid to yourbeneficiary.Page 8 of 9, see disclaimer on final page
Disclosure Information -- Important -- Please ReviewThis information was developed by Broadridge, an independent third party. It is general in nature, is not acomplete statement of all information necessary for making an investment decision, and is not arecommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may notbe suitable for all investors. Past performance may not be indicative of future results. Raymond James &Associates, Inc. member New York Stock Exchange/SIPC does not provide advice on tax, legal or mortgageissues. These matters should bediscussed with an appropriate professional.Raymond James & Associates, Inc.Larry Zebko31500 Northwestern Hwy.Suite 150Farmington Hills, MI 48334Larry.Zebko@RaymondJames.com248-932-5450Page 9 of 9October 22, 2013Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013
Life Insurance Basics Life insurance is an agreement between you (the insured) and an insurer. Under the terms of a life insurance policy, the insurer promises . Whole life: You generally make level (equal) premium payments for life. The death benefit and minimum cash value are
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Department of Insurance Replacement of Life Insurance and Annuities. Page 3. 04. Existing Life Insurance or Annuity. "Existing Life Insurance or Annuity" means any life insurance or annuity in force, including life insurance under a binding or conditional receipt or a lif e insurance policy or annuity that is within an unconditional refund period.
Life Insurance uers uide Naional ssociaion of Insurance Commissioners Compare the Different Types of Insurance Policies There are many types of life insurance pol-icies. You should choose a policy with fea-tures that fit your individual needs. Some things to consider are: Term Insurance vs. Cash Value In-surance. Term insurance is intended to
Lesson 3 - James 1:13-18 15 Lesson 10 - James 5:1-12 61 Lesson 4 - James 1:19-27 21 Lesson 11 - James 5:13-20 67 Lesson 5 - James 2:1-13 27 Lesson 12 - James Synthesis 73 Lesson 6 - James 2:14-26 35 Appendix - Bible Study Skills 79 Lesson 7 - James 3:1-12 42 Introduction “The book of James is the voice of a great Christian leader whose grasp .
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involve misstatements or omissions in Raymond James's disclosure and do not call into question the reliability of Raymond James's disclosure or its ability to produce reliable disclosure in the future. Rather, the misconduct described in the Order occurred at the subsidiary level, without the 3 17 C.F.R. § 200.30-l(a)(lO).
and one expert witness in rebuttal. 2. Raymond James Financial Services, Inc. (Raymond James), presented eleven witnesses, including four experts. J. Stephen Putnam (Mr. Putnam) testified and presented one expert witness. The record contains approximately 510 exhibits. The final brief was submitted on April 28, 2005. ISSUES . 1.
Additif très dangereux E249 : Nitrite de potassium . Conservateur chimique. Risques : essoufflements, vertiges, maux de tête, chez les nourrissons les nitrites peuvent provoquer la mort par asphyxie car ils empêchent les globules rouges de transporter l'oxygène, cancérigène. Très répandu dans les charcuteries, les salaisons, le foie gras et le bacon traité, MÊME DANS LES .
