Insurance
The goal of life insurance is to provide a measure of financial security for your family. Life Insurance protects against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
Regal is currently licensed for insurance products in the following states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Kansas, Kentucky, Missouri, Nebraska, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Wisconsin
Note: Not all Regal financial representatives are licensed to offer insurance products. Please contact your representative for more information
- Temporary (Term) Life Insurance
- Term life insurance provides for life insurance coverage for a specific term of years for a specified premium. The policy does not accumulate cash value and the premium buys protection in the event of death and nothing else. Various (U.S.) insurance companies sell term insurance with many different combinations of these three key parameters - face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).
- Permanent Life Insurance
- Permanent life insurance is life insurance that remains in force until the policy matures (pays out), unless the owner fails to pay the premium when due. The policy cannot be canceled by the insurer for any reason except fraud in the application, and the cancellation must be within a period of time defined by law. Permanent insurance builds cash value and the owner can access the money in the cash value by withdrawing, borrowing or surrendering the policy and receiving the surrender value. The three basic types of permanent insurance are Whole Life, Universal Life, and Endowment.
- Whole Life Coverage
- Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional.
- Universal Life Coverage
- Universal life insurance intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return.
A universal life policy includes a cash account which is increased by premiums and interest is paid within the policy at a rate specified by the insurance company. The internal rate of return is usually higher because it moves with the financial markets. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. Universal life policies guarantees, to some extent, the death proceeds, but not the cash function - thus the flexible premiums and interest returns. - Endowments
- Endowments are policies in which the cash value built up inside the policy, equals the death benefit at a certain age, known as the endowment age. Endowments are substantially more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. Endowment Insurance is paid out whether the insured lives or dies, after a specific period of years or specific age and follow tax rules as annuities and IRAs do.
- Variable Annuities
- Variable Life Insurance is a form of whole life insurance and provides permanent protection to the beneficiary upon the death of the policy holder. Generally the most expensive type of cash-value insurance, variable life allows you to allocate a portion of your premium dollars to a separate account comprised of various investment instruments within the insurance company's portfolio such stocks, bonds, equity funds, money market funds and bond funds. In addition, because of investment risks, variable policies are considered securities contracts and are regulated under the federal securities laws; therefore, they must be sold with a prospectus.
Major Advantages: -
- Allow you to participation in various types of investment options
- No tax on your earnings (until you surrender the policy)
- Apply interest earned on investments toward the premiums, potentially lowering the amount you pay.
There are investment risks when invested funds perform poorly. Less money may be available to pay premiums, you may have to pay more than you can afford to keep the policy in force and the cash and/or death benefit may decline, though never below a defined level.