Combination Life Insurance
Why do you need combination life insurance?
- You want a life insurance policy custom designed for your situation.
- You want a comprehensive insurance policy with a competitive premium.
- You need a flexible and affordable way to purchase permanent life insurance.
- You want to plan for a dependent with special needs.
- You want to provide much-needed cash to keep a business going after the death of a key person.
- You want life insurance coverage designed especially for the executive benefit market.
- You need a large death benefit to pay estate administration costs and estate taxes.
Combination Life Insurance Overview
A combination life insurance policy is a flexible life insurance policy that builds on traditional designs and guarantees. In its most flexible form, a combination life insurance policy provides for a variety of coverage and premium options.
A combination life insurance policy may include permanent life insurance, a term insurance component and paid-up additions. The policy can be mixed in almost any proportion.
The death benefit of combination life insurance is there to meet survivor needs for income and debt reduction, or to cover funeral expenses, estate administration costs, mortgage payments, children's education costs, household and child care services, and the expenses of last illness.
Combination life insurance can also provide security and value in business situations that call for a buy-sell agreement, key person coverage, a split dollar arrangement, and all the other potential circumstances where there is a business need for cash following the death of the insured.
In addition to the death benefit, tax-deferred cash value accumulation is available and can be used to take advantage of an opportunity or in cases of unexpected expenses or emergencies that may come up during the policyowner's lifetime.
When to Use Combination Life Insurance
- When you have a need for both permanent life insurance and term insurance.
- To place more emphasis on either the protection or accumulation aspects of life insurance.
- Life insurance to provide for a dependent with special needs.
- Estate planning for estate administration costs and estate taxes.
- Estate preservation for business succession to compensate heirs fairly.
- For small businesses requiring extra flexibility in meeting their life insurance needs.
- Keyperson protection for employees in different age groups.
- Executive benefit marketplace.
- Split-dollar funding arrangements.
Key Features of Combination Life Insurance
- A life insurance policy custom designed for your situation.
- A flexible and affordable way to purchase permanent coverage.
- A large death benefit at a competitive premium.
- Protection may be continued for your entire lifetime.
- A guaranteed minimum cash value.