Life Insurance

Candor Insurance Group offers affordable life insurance options that are easy to understand and flexible enough to fit your unique needs. We quote Life Insurance policies only from companies with a minimum rating of A- ("Excellent") for financial stability from A.M. Best. Obtain a FREE Quote or call 800-869-5493 for more information.

Term Life Insurance: Term insurance provides protection for a specified period of time, such as 10 or 20 years. The most typical type is "level term", where as long as the premiums are paid, the rates will not increase during the guaranteed period. Term Life Insurance is appropriate for:

• People with a temporary need for life insurance protection
• Families with limited budgets (convertible term policies are often recommended since future proof of insurability won't be required for a permanent policy which has numerous advantages (see below))
• Short-term key person business needs

Equity Indexed Universal Life Insurance: Equity indexed universal life (EIUL) is low cost permanent life insurance. In addition to the death benefit protection, EIUL offers numerous advantages for retirement and estate planning including:

• Tax-deferred growth of cash value paid into the policy - with higher potential interest crediting, but lower guarantees(1)
• Borrow against policy's cash value on a tax-free basis - examples: downpayment on house, fund college tuition, etc(2)
• Access "living benefits" tax-free (accelerated payments of death benefit), if the insured is diagnosed with a chronic, critical, or terminal illness(3)
• Distribute death benefits tax free to the insured's legal heirs(4)

Such policies allow flexible premium payments and the ability to adjust a policy to meet specific personal or business needs.

EIUL provides the option to participate indirectly in the upward movement of a stock index without accepting the normal risk associated with investing in the stock market. The actual interest credited to a policy’s cash value is determined by the annual changes of an equities index (excluding dividends). Most insurance companies use the S & P 500 Index®(5) as the underlying index for their equity indexed life product.

With equity indexed life, in years where the underlying equity index increases, the policy cash value is increased up to a certain limit usually referred to as the growth cap. The cap varies among insurance companies. In years where the underlying equity index is flat or loses value, the cash value is subject to the growth floor. The floor is generally guaranteed to be 0% or greater. Additionally, some companies offer a cumulative guarantee that assures a minimum effective interest rate over a given time period. This combination of the potential to realize higher upside returns without the downside risk makes the equity indexed life insurance policy a unique and attractive cash accumulation vehicle.

(1) Guarantees are dependent upon the claims-paying ability of the issuing insurer

(2) Policy loans from life insurance policies generally are not subject to income tax. Policy withdrawals or loans will reduce the insurance policy’s ultimate death benefit and cash value. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Also, depending on the insurance company, a surrender charge may apply if the policy cash values are fully surrendered before the surrender period expires.

(3) Living benefits typically allow the insured to access up to 2% per month of the policy's death benefit in the event of a critical or chronic illness. Also, depending on the company, the insured may access the full death benefit on a discounted basis in the event of a terminal illness.

(4) Proceeds from a life insurance policy paid upon the death of the insured are in most cases excluded from the beneficiary’s gross income. Death benefits, cash value, and loan values (if such are outstanding) will be reduced if accelerated benefits had been previously paid.

(5) The S & P 500 (Standard and Poor’s Composite Price Index) is composed of 500 common stocks representing major U.S. industry sectors. “ Standard and Poor’s®,” “S & P®,” “S & P 500®,” “Standard & Poor’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. Equity indexed universal life insurance is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing such a policy.

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