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Life Insurance

With life insurance, you can ensure the people you care the most about are provided for financially, even if you're not there. Johnson Insurance agents will create a life insurance plan to best meet your individual needs and financial objectives to give you and your family financial protection.

Life insurance death benefits are usually free from income taxes and can be used to supplement a retirement plan, generate lifetime income, pay off a mortgage, provide funds for childcare, college education and more. There are also life insurance policies that will accumulate a cash value over time, providing you with a vehicle to defer tax on interest earned and allow you to take tax free distributions.

To be effective, your life insurance strategy must be built around your unique situation. Your agent will work with you to determine the amount of coverage and the type of life insurance that will fit your needs. Below are types of life insurance you and your agent may consider including in your plan:

Term Insurance
  • Provides protection for a specific term.
  • Produces a death benefit that is generally free from income taxes.
  • Is often renewable after the policy term without evidence of insurability.
  • Usually costs less than permanent insurance in the short‐term.
  • Can sometimes be converted to permanent insurance with the same company during the life of the policy.
Whole Life Insurance
  • Builds a cash value that can be borrowed against.
  • Locked‐in rates that won't increase over time.
  • Tax‐deferred growth of cash value.
  • Produces a death benefit that is generally free from income taxes.
Universal Life Insurance
  • Provides flexible death benefits and flexible premiums as long as the cash values are enough to cover insurance costs.
  • Typically includes a cash value account that accumulates at a floating rate of interest, with a minimum rate guarantee.
  • Accumulates cash value which you may use to help pay for the cost of insurance, riders and other policy expenses.
  • May provide a secondary guarantee such as no‐lapse protection which allows you to select a coverage period from 10 years to age 100.
Variable Universal Life Insurance
  • Combines the flexibility of universal life with performance of investment accounts with the focus on accumulating cash values.
  • Is performance based and may outperform or underperform a traditional whole life or universal life policy.
  • Provides flexible death benefits and flexible premiums (as long as the cash value of the policy is adequate).
  • Directs net premium to investment accounts, with potential growth in cash value and death benefits tied to the account's performance. If the policy is a fixed account there is no guaranteed rate of return and you could lose money.
Survivorship Life Insurance
  • Covers two lives, where the death benefit is payable on the death of the second life.
  • Commonly used in estate planning—the first spouse to die leaves his or her estate to the surviving spouse, utilizing the unlimited marital estate tax deduction. The estate then becomes taxable upon the death of the second spouse.

To estimate your life insurance needs and understand how income, assets and more may impact your solution contact a Johnson Insurance agent.

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