Life Insurance

Why It's Important?

LIFE INSURANCE

Why It's Important

Life Insurance may be one of the most important purchases you'll ever make. In the event of tragedy, life insurance proceeds can:

■ Help Pay Final Expenses

■ Serve As Income Replacement

■ Continue Family Business

■ Child’s Needs (Education, 1st Home, Etc.)

■ Protect Your Spouse’s Retirement Plans

■ …And Much More!

What Plan Is Best For Me?

WHOLE LIFE INSURANCE

These policies are designed for individuals who want guarantees and who are focused on providing death benefit protection over cash value accumulation.

OFFERS

  • Guaranteed death benefit3

  • Guaranteed cash value

  • Potential additional cash value by the receipt of any dividends declared by the company. Although not guaranteed, dividend payments are generally declared annually by the company.

  • Level premiums that are guaranteed to never change.

UNIVERSAL LIFE INSURANCE

May be ideal for the consumer who has a need for life insurance, is somewhat conservative, and wants the guarantees of a fixed, minimum interest rate with the potential for additional interest credits.

Increasing the death benefit may be subject to additional underwriting approval.

OFFERS

  • Flexible death benefit

  • Flexible premium

  • Policy cash values are credited a current interest rate that is set by the insurance company and which is subject to change but it will never be lower than a guaranteed minimum interest rate.3

INDEX UNIVERSAL LIFE INSURANCE

May be ideal for those who need death benefit protection but are focused on cash value accumulation for lifetime needs such as supplementing retirement income.

Increasing the death benefit may be subject to additional underwriting approval.

OFFERS

  • Flexible death benefit

  • Flexible premium

  • Cash value grows based on an interest crediting strategy that is tied to changes in a market index such as the S&P 500.4

  • Downside protection through minimum guarantees3 to ensure that your cash value will not decline due to decreases in the Index.

VARIABLE UNIVERSAL LIFE INSURANCE

This policy design is for the customer who needs life insurance but would like to have the ability to choose how their cash value is invested.

Guarantees are dependent upon the claims-paying ability of the insurer and do not protect the value of the variable product portfolios, which may fluctuate. Variable policy holders are subject to investment risks, including the possible loss of principal invested.

OFFERS

  • Flexible death benefit

  • Flexible premium

  • Cash value grows based on the performance of the professionally managed stock, bond and money market sub-accounts that you choose. You can design a portfolio to match your comfort level and risk tolerance. Policy cash values fluctuate based the sub accounts in which you are invested and may lose value, including principal.

TERM INSURANCE

May make sense for those with budget limitations, have large protection needs or have a temporary need.

OFFERS:

  • Guaranteed death benefit for a fixed period3

  • Fixed premium.

  • No cash value.

  • Coverage is for a certain period of time (term), usually for a specified number of years or to a specific age of the insured.

  • Initial premiums tend to be lower but will eventually increase.

  1. Guarantees are dependent upon the claims-paying ability of the issuing company.

  2. “Standard and Poor’s®,” “S&P®,” “Standard and Poor’s 500,” and “500” are trademarks of Standard & Poor’s and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in this Product. The S&P Composite Index of 500 stocks (S&P 500®) is a group of unmanaged securities widely regarded by investors to be representative of large-company stocks in general. An investment cannot be made directly into an index.

Most Americans need life insurance.

  • If you died tomorrow, how would your loved ones fare financially?

  • Would they have the money to pay for your final expenses?  (ex. funeral costs, medical bills, taxes, debts, lawyers’ fees, etc.)

  • Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc?

  • What about long-term financial goals?

  • Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?

  • If someone will suffer financially when you die, chances are you need life insurance.  Life insurance provides cash to your family after your death.  This cash (known as the Death Benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding.