Life Insurance/Disability Insurance

Life Insurance is a unique asset. Because of its high yield and its tax-favored benefits, it can be used to solve some of life's perplexing financial problems.

• Death Benefit Uses for Life Insurance
• Create an estate
• Pay death taxes and other estate settlement costs
• Fund a business transfer
• Pay off mortgage
• Protect a business from the loss of a key employee
• Replace a charitable gift
• Pay off loans
• Equalize inheritances
• Accelerated death benefits
• College funds for children or grand children
• Supplement retirement funds
• Disability Insurance:

Insurance claims studies indicate that the odds of becoming disabled for 90 days or longer are much greater than dying during one’s working years.* Studies also suggest that, as the number of a business owners or key employees increases, so do the odds that one of them will suffer a long term disability.

One approach to the problem of providing a income during an extended period of disability is to purchase individual income insurance.

What to look for in a disability Insurance policy:

• Definition of disability
• Partial or residual benefits
• Cost of living adjustments
• Cancelability and renewability of policy
• Waiting and elimination period
• Benefit period

* 1985 Comminssioner's Individual disability Tables, 1980