Wealth Management Solutions for the Global Community
Protection & Life Insurance



Protecting the financial security of your loved ones in the event of an untimely death is a vital concern for everyone.



IFA-ASIA  thinks it is paramount that every family provider understands this, and how life insurance plans can be utilized to ensure that your family is never without sufficient income to ensure a comfortable lifestyle. Our efforts are therefore focused on helping you understand how life insurance works and providing consultation in choosing the best possible product to fit your family's needs.

Temporary
This type of insurance is characterized by a defined time period, which is stated at the time the contract is initially executed. If the contract is an Annual Renewable Term (ART), the contract does not fall in the Temporary category. This is because the ART contract only provides coverage for one year.

Term
Term life insurance provides life insurance coverage for a specified number of years for a specified premium (amount). The policy does not accumulate cash value. Term insurance is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.

The three key factors to be considered when purchasing term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).

Permanent

Permanent life insurance is a life insurance policy that remains in force until the policy matures (pays out), unless the owner fails to pay the premium when due (e.g., at which time the policy expires). The policy cannot be cancelled by the insurer for any reason except fraud in the application, and cancellation for such fraud must be completed within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million-dollar face value can be relatively inexpensive to a 70-year-old because the actual amount of insurance purchased is much less than one-million dollars. The owner can access the cash value of the policy by withdrawing money, borrowing against the cash value, or surrendering the policy and receiving the surrender value.

Whole of Life
Whole life insurance provides a level premium and a cash value (minimum return 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 do 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. Riders are available that can allow one to increase the death benefit by paying an additional premium. The death benefit can also be increased through the use of policy dividends. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equivalent if policies are kept in force until average life expectancy. The 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. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.

Please feel free to contact IFA-ASIA for more information, or request a free consultation to determine the right insurance plan to fit your needs.