• personal banking
  • business banking
  • online banking
  • investments
  • planning and tools

Term/Permanent Life Insurance

LPL Financial Products & Services

Font Size 

Term Life
Term life insurance is the most cost-effective form of life insurance and is generally used to provide basic protection for a specified period of time. While cost-effective, owners of term insurance accumulate no cash value in their policies.

Permanent Life
If premiums are paid on time, these policies generally provide coverage for the insured’s entire life. The policy never expires or needs to be renewed. The death benefit goes to the beneficiaries upon death of the insured. Policies have cash value or a savings feature. Whole life, universal, and variable insurance are types of permanent life insurance.

Whole Life
In this type of permanent life insurance, the premium, death benefit, and cash value amounts quoted at the time of purchase remain the same throughout the policy’s life. The benefit: the cash value always stays intact and earns interest, and the death benefit will never decrease. The disadvantage: the carrier invests the premiums conservatively, typically generating less-than-competitive returns.

Universal Life
This product is a flexible version of whole life insurance in which premiums can be adjusted within predetermined boundaries. As a consequence, the death benefit can vary. The flexibility of premiums also means that the policy’s cash value, which is interest-sensitive, cannot be guaranteed. However, many new Universal Life products on the market offer a minimum guaranteed rate of return and death benefit guarantees.

Irrevocable Life Insurance Trust (ILIT)
An ILIT is a trust that owns a life insurance policy or policies and whose terms cannot be changed once created. The trust pays the policy premiums, collects the death benefits, and distributes the proceeds according to the trust’s terms. It is used to lower assets in an estate so as to minimize taxation.

1035 Exchange
Section 1035 of the Internal Revenue Code provides that certain exchanges of life insurance contracts, annuity contracts, and modified endowment contracts generally will not trigger a taxable gain as long as the owner is the same person under both contracts.

Please consult a tax advisor to discuss your specific tax issues. Guarantees are based on the claims paying ability of the issuing company.

LPL Financial Consultant
Thomas Hart • 440.632.3444 • 888.801.1666 • 
Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
Not FDIC Insured Not Bank Guaranteed May Lose Value Not Insured By Any
Federal Government Agency
Not A Bank Deposit

We provide the above links to the LPL Financial web sites as a convenience to our visitors. The Middlefield Banking Company does not guarantee the quality or services provided by LPL Financial or any other web sites visited. By selecting these links, you will be leaving The Middlefield Banking Company website. The Middlefield Banking Company does not necessarily endorse the views expressed or concur with the facts presented on these sites. Furthermore, The Middlefield Banking Company does not endorse any commercial products or services that may be mentioned on these sites.