Life Insurance Corner

Welcome to the Life Insurance component of our web Page. In this section we will offer you objective information on a widely used and often misunderstood financial tool called Life Insurance. It is one of the most beneficial financial planning tools available.  We  help guide you through the maze of Life Insurance.


May is INCOME PROTECTION Month.  What would happen to your family and your finances if an accident and or illness happened?  I review your savings, social security, New York State Statutory Laws and possible Group Plans with your emloyer. Now is a great time to review or start your INCOME PROTECTION PLAN.


Business Owner ?  Have any outstanding Loans?  How would you pay down your debt obligation if you were not able to work for any length of time?  Consider a Business Loan Relief Policy.  You can attach it to an Overhead Expense Policy or make it a stand alone policy.  Contact us for more details.  


There is a Life Insurance policy that offers a fixed, guaranteed cash value, usually at a minimum rate of 2%.  It has Flexible premium payments, subject to a minimum, allowing you to increase, decrease or even skip premiums.  You can also increase and or decrease the amount of Insurance on your policy. Lastly, you can participate in whatever growth, not guaranteed, in the stock market.  Even if the stock market declines, you do not lose your accumulated cash value.

Interested?  This new policy is called INDEXED UNIVERSAL LIFE.

Please keep in mind some key points.  Although there is not a prospectus (the participation is tied to an Index such as the S & P 500), one should carefully check the credit rating of the Life Insurance company.  I refer people to Moody's, A.M. Best, or Fitch.

Additionally,the minimum interest rate is controlled by the claims paying ability of the Life Insurance company.  So it's important to study the financials of said company.

Insofar as participation in the stock market growth, there are two points to consider.  Companies have a PARTICIPATION RATE AND A CAP.  If the Index experiences a gain, a percentage of the gain is credited to your policy.  Some companies offer a 100%  participation rate.  However, some companies permit a 90% participation rate.  So. for example, if the S & P 500 gains 20% over the policy year, and has a 90% participation rate, you are credited 18% to your account ( 20% x .90 =  18%).  Some companies set a maximum cap on the gains in your cash value.  For instance, if there is a CAP of 12%, then  even in the previous example if the gain is 18%, your account would only be credited 12%.

Not all policies are the same.  We can offer a comparison.  You need to study the credit rating, financials and NET SURRENDER INDEX  of several different companies. You can contact me at for a more detailed summary.

Source:  Broadridge/Forefront, 2013,  FINRA approved.