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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2018

Life Choices

Girl before a white roadsign in fear of the unknown

Term or perm? This sounds like something you might hear from a hair stylist, but they’re actually the two main types of life insurance. Because September is Life Insurance Awareness Month, now is a good time to learn about the differences between term and permanent life insurance.


Term Life
Term life insurance is insurance that covers you for a term — a certain period of time. While there are level premium term policies that keep premiums the same for a specified number of years, the most recognizable type of term insurance is renewed annually. Declining health can increase your cost, and premiums typically increase as you age.


While term life insurance offers a death benefit, it does not offer cash value. A few policies may offer a return of premium option, usually at a higher price. Term life may be appropriate if you have a temporary insurance need or limited financial means. If you buy term, consider a policy that allows you to convert without medical underwriting to permanent life insurance at a later date.


Permanent Life
Like term insurance, permanent life insurance offers a death benefit. Premiums for permanent life insurance are typically more expensive in the beginning than for term insurance, but never increase as long as you own the policy and pay premiums on time.


The cash value component, which builds over time, is among permanent life’s most attractive features. There are a number of ways to use this cash value. Put it back into the policy to increase the death benefit or use it to reduce premiums. Or you may take a loan against the cash value or withdraw cash. *


Term or perm? It’s your choice. Talk to an insurance professional to learn more.


* Loans and withdrawals can reduce the policy’s cash value and death benefit, and they may result in a tax liability. They can also cause the policy to lapse. If the policy lapses, or is surrendered, any loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 1/2, any taxable distribution from the policy may also be subject to a 10% federal tax penalty. Talk to a tax professional for information about the tax treatment of withdrawals and loans.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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