Life Insurance and Annuities

Life insurance offers many important advantages, including income replacement for your survivors, forced savings for you, possible collateral for your bankers, and a ready source of cash when needed most.

Life insurance is among the most useful, and most maligned, of all the things that you may ever buy. If properly fitted to your needs and offered at a competitive price, life insurance yields important advantages, including:

• income replacement for your survivors
• investment/forced savings for you and possible collateral for your bankers
• reduced income and transfer tax liability
• a ready source of cash at a time when it's likely to be needed most
• funding of buy/sell agreements and other business applications

So, if life insurance can offer all of the above advantages, why aren't there long lines of people outside their insurance agent's office, demanding to buy more? No mystery here. . .it's human nature to resist reminders of one's mortality, much less pay for them!

To help you avoid the possible pitfalls associated with life insurance, we suggest that you look at the following discussions:

• Term vs. cash value
• Comparative tables of common types of insurance policies
• Common provisions and terminology of life insurance policies
• Split dollar insurance
• Annuities

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