Insurance 101 and beyond

INSURANCE 101

When’s the best time to think about life insurance?

If you're here, you're already thinking about it. With most life insurance policies, it's less expensive when you're younger. And, if you purchase a permanent policy at a younger age, you'll have more time to grow cash value. But it's never too late to protect your family. To borrow from an ancient proverb: "The  best time to purchase life insurance is 10 years ago. The second best time is today."

INSURANCE 101

What should I consider?
Who’s it for? 

Everyone's life choices are different - and so are everyone's protection needs. First and foremost, life insurance is designed to help protect your loved ones when you die. 


Yet permanent life insurance products also give you the option to save money via cash value - so you can also use your life insurance policy as a financial safety net. 

Death benefit versus living benefits 

The death benefit is for your loved ones - it goes to your beneficiaries after you die. Your beneficiary can be a person, a charity, a trust - or you can name multiple beneficiaries.


Living benefits are just that: benefits you can access while you're still alive. IUL TermVest+ includes living benefits in the form of an accelerated benefit rider.* If you're diagnosed with a qualifying condition, you can access part of your death benefit while you're still alive. The remainder of your death benefit goes to your beneficiaries after you pass away. 

Cash value: a different kind of "living benefit"

 IUL TermVest+ allows you to save money and build cash value within your policy. You can access your accumulated cash value via loans or withdrawals, or you can use it to help cover policy charges (subject to policy provisions). You can also surrender your policy at any time for no surrender fee - and collect any remaining cash value in your policy. 

How much life insurance do you need?

It’s different for everyone. It all depends on your goals, your preferences, and whether you’re making life insurance part of a personal financial plan. Please speak with a financial advisor about the benefits of insurance in financial planning.  

Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. Everly Life, its agents and representatives may not give legal, tax or accounting advice and this presentation should not be construed as such. Customers or potential customers should confer with their qualified legal, tax and accounting advisors as appropriate.

*Important Information Regarding Accelerated Benefit Riders (ABRs):
Exercising an accelerated benefit will impact the Policy. If an accelerated benefit is paid, the coverage amount, cash value, Case Surrender Value, and Loan Payoff will be reduced by a Pro Rata amount. Accelerated benefits may result in a taxable event and could impact Medicare, Medicaid, SSI and other public assistance program eligibility. You should contact your personal tax advisor for tax-specific advice before exercising these benefits. This Rider is not intended to be a health contract, qualified long term care insurance contract under section 7702B(b) of the Internal Revenue Code (the “Code”), or a non-qualified long term care insurance contract. The accelerated benefit under this Rider may be subject to requirements and limitations not specifically described in this description. See the Rider for details regarding additional terms, conditions, and limitations.
Accelerated benefit riders are subject to state availability, and may not be available on all policies. The benefit you receive may not be equal to the amount of death benefit you accelerate. 
In California, “accelerated benefit riders” are referred to as “accelerated death benefit riders.”

INSURANCE 101

Term life, permanent life, and Everly TermVest:What’s the difference?

Term life insurance

  • Generally least expensive option
  • Set premiums
  • Coverage is designed to last only for the term period
  • Doesn’t build cash value

Permanent insurance  

  • Generally more expensive than term
  • Set premium, but can change in some cases
  • Coverage is designed to last a lifetime
  • Can build cash value that can be accessed via loans or withdrawals

Everly TermVest+

  • An indexed universal life insurance policy that offers term-like pricing for a certain time (called the fixed cost period)
  • Flexible payments are available for the life of the policy
  • Coverage is designed to last a lifetime
  • Can build cash value that can be accessed via loans or withdrawals

INSURANCE 101

Give your money some room to grow

Permanent life insurance and IUL TermVest+ offer tax-advantaged ways to help accumulate financial strength while providing flexibility. 


  • Death benefits that generally pass tax-free to your heirs
  • Cash value that builds through the life of the policy. Interest earned compounds tax-deferred.  

Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. Everly Life, its agents and representatives may not give legal, tax or accounting advice and this presentation should not be construed as such. Customers or potential customers should confer with their qualified legal, tax and accounting advisors as appropriate.

INSURANCE 101

The four tax buckets

Taxes play a critical role in financial planning. Accounting for taxes in your financial plan allows you to make informed choices that maximize after-tax income and help you achieve long-term financial goals.

Taxable

Many people keep their money in the 'taxable' bucket. It's highly liquid and interest is taxed when earned. 


Examples: Income, CDs, money market accounts, and interest earned from savings. 

Tax-deferred

Contributions into this bucket are made with post-tax dollars, and interest earnings are not taxed until withdrawn. 


Examples: Non-qualified annuities, non-qualified retirement plans. 

Tax-favored

Initial contributions into this bucket are made with pre-tax dollars, and interest is tax-deferred. Therefore, contributions and interest are taxed when withdrawn. There are often limitations associated with these options.


Examples: 401(k)s, 403 (b)s, traditional IRAs, qualified retirement plans

Tax-free

Contributions made into this bucket may be pre-tax or post-tax, but are not taxed when used. Life insurance death benefits are generally not taxed. 


Examples: Municipal bonds, Roth IRAs (yet Roth IRAs have income limits), cash value life insurance, 529 plans, HSA plans, FSA plans.

INSURANCE 101

Life insurance as part of a financial plan


Life insurance can be a versatile tool in personal financial planning. Beyond helping provide security for your family, permanent life insurance can offer other benefits.


Talk to your financial advisor to see if insurance can play a foundational role in your financial plan. 

Diversify your investment portfolio

If you’ve maxed out qualified retirement plan contributions, you could add to the cash value of your policy and generate tax-deferred growth. You can access this cash value via loans or withdrawals.

Tax-free death benefit

When you pass away your beneficiary receives a death benefit that is typically tax-free, minus any loans or withdrawals you may have taken. 

Help with expenses and taxes at death

Your heirs may face expenses or taxes upon your death. A life insurance policy could help address some of these risks.  

Accessing living benefits

Some policies allow you to accelerate a portion of your death benefit while you're still living if you experience a qualifying event. This can help pay for the cost of care or help with other expenses.

Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. Everly Life, its agents and representatives may not give legal, tax or accounting advice and this presentation should not be construed as such. Customers or potential customers should confer with their qualified legal, tax and accounting advisors as appropriate.

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