SENIOR LEGACY PLANS:
Protect your family and provide a lasting legacy.


Reasons for Senior Legacy Plan

What does it do?

A Senior Legacy plan helps protect you and other beneficiaries from unforeseen financial expenses due to an untimely death. No matter what age someone passes away at, they will incur final expenses for a funeral service. You may even have a large amount of medical bills, personal debt and loans that will need to be paid off. A Life insurance plan can provide a cheap, easy way to pay off those expenses.

What else can it do?

A Senior Legacy plan can also help you save money for the future depending on the type of plan you have. As you make payments, you build up a cash value over the years that can be borrowed against or withdrawn to help fund any type of expenses at a later date. Other plans provide a choice of savings options within the plan.

Who needs it?

Most people need life insurance. To really find out if you need Life Insurance ask yourself this: How would your loved ones be effected if you were to pass unexpectedly? Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, college loans, debts, fees, etc.)?

Types of Senior Legacy Plans

Permanent Plans (best option)

Permanent Insurance provides protection for the span of your life. As long as you pay the premiums, the death benefit will be paid.

This type of insurance also combines death benefits with the opportunity to build savings tax-deferred. Part of your premium payments are invested by the insurance company on your behalf. This builds up a cash value, which you can use in several different ways. You can take out a loan against the cash value of your policy, use the cash as extra retirement income, or subsidize other expenses. You may also be able to cancel, or surrender, the policy and receive the cash value as a lump sum. With all permanent life insurance policies, the cash value is different from the policy's face amount. Cash value is the amount available if you surrender a policy, while face amount is the money paid by the insurance company at your death.

Premiums for permanent life insurance are generally higher than term life insurance because of the cash value. However, the younger you are when you buy the policy, the lower your premiums will be.

Term Plans

Term insurance provides protection for a specific period of time and generally pays a benefit only if you die during the period of coverage, and does not accumulate cash value. Common terms are 1, 5, 10, 20, and 30 years. People often purchase term life insurance to cover shorter-term debts like a mortgage, student loan or other debt. While term life premiums are usually lower than permanent premiums, they increase as you get older.

What happens when the term runs out? Many policies will give you the option to renew your policy when you reach the end of the term. But you'll probably face much higher costs since age is one of key factors used to determine life insurance premiums.

Indexed univeral life insurance (Great for savings)

Indexed univeral life insurance is a lot like universal life insurance, however allow the policy holder to select various equity accounts in which they can invest. An indexed universal life insurance policy gives the policy holder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100.

Common Questions

Q: Why should consider a Senior Legacy plan?

No matter what age someone passes away at, they will incur final expenses for a funeral service. You may even have a large amount of medical bills or other personal debt.

Q: How much coverage do I need?

A: A rule of thumb is to buy life insurance equivalent to cover any personal debt plus the cost of funeral expenses (about $10,000).

Q: How much will my cost be??

A: whole life plans start at about $20 per month. However, premium amounts vary from policy to policy. Because premium rates are generally determined by age and gender, the younger you are when you buy your policy, the lower your rates will be. For more specific information about plan costs, request a quote.

Q: Will my beneficiaries have to pay income tax on the benefit?

A: No. The death benefits are tax-free to your beneficiaries. However, if your beneficiaries die before you do, the death benefit will be paid to your estate and may be subject to estate taxes. That's why it's important to keep your beneficiary information up-to-date. It's also a good idea to name a secondary, or contingent, beneficiary in case you outlive your primary beneficiary.

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