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Life & Long-term Care Insurance with American Insurance and Investments

Protection for your future – and your finances.

Planning for your financial future? It's important not to overlook insurance coverage that can protect you and your family. Count on American Insurance and Investments – through a relationship with LPL Financial – to help you find the life insurance and long-term care insurance products that can protect everything you've worked for.^†

Life Insurance

Life insurance is a contract between an insurance company (the "insurer") and you (the "insured"). The contract promises to pay a person you choose (your "beneficiary") a sum of money, income tax-free, when you die. In return, you pay premiums to the insurer. Life insurance can also help aid in the transfer of your wealth or for estate planning purposes.

• Insurance benefits are not taxed
• Provide income to your beneficiaries when you die
• Insurance proceeds can be used to pay estate taxes
• A wide variety of insurance products to meet your needs

Long-Term Care Insurance

Depending on your age, health condition, family situation, and financial assets, you may want to consider Long-Term Care insurance. This insurance covers many of the expenses associated with long-term care and ease the burden on your family, protects your assets, or preserves your assets for your heirs.

• Provides coverage should you become sick and need in home or nursing home care
• Protects your assets from the high cost of long term care
• Payable in monthly installments

The details:

Life Insurance

Cost

• From $50 per month to a single lump-sum payment
• Depends on amount of insurance purchased and age and health of insurer

Plan Types

• Term Insurance
• Permanent Insurance
• Variable and fixed rates

Tax Benefits

• Tax-deferred interest
• Tax-free pay-out to beneficiaries

Long-Term Care Insurance

Cost

• From $100 per month to a single lump-sum payment
• Depends on amount of insurance purchased and age and health of insurer

Plan Types

• Monthly — usually not interest-earning
• Single payment — may pay competitive rates with a minimum rate guarantee

There are two general types of life insurance:

Term Insurance

You purchase protection (the "death benefit") for a fixed dollar amount for which you pay a fixed cost every month. You are protected for the "term" of your policy, which could be up to 20 years. If you die during that time period, the death benefit is paid to your beneficiaries tax-free. Term insurance doesn't allow you to build up cash-value, so it's usually the least expensive type of insurance you can buy.

Permanent Insurance

Just like term insurance, when you buy permanent insurance, you choose the amount of protection to buy. Unlike term, however, permanent insurance allows you to build up cash value that earns interest tax-deferred. There are many types of permanent insurance, but, unlike term insurance, all of them guarantee that you stay protected as long as you pay your insurance premiums. Some types of permanent insurance have a fixed cost for your lifetime, while others have premiums that may change. The following are some of the more popular types of permanent insurance:

• Whole Life
• Universal Life
• Variable Life
• Variable Universal Life

Guarantees on Life Insurance policies are based upon the claims paying ability of the Issuing Company.

Getting Started

The following information will help our Financial Consultants develop an insurance plan designed to meet your specific needs:

• Provide information on your current life insurance and long-term insurance plans
• Identify the gap between desired income for your family and current income that would be provided from social security, retirement plans, and other assets should you die
• Identify the value of your estate and the means of transferring your estate to your beneficiaries; i.e., wills or trust
• Identify income coverage should you become incapacitated

As with all tax-related decisions, consult your tax advisor, and for legal related decisions, consult your attorney.