Life Insurance
Shopping for life insurance can be confusing and sometimes described in terms that we just don’t understand. To help you with your journey, here are answers to questions people often ask and an explanation about what certain terms mean.
What is a death benefit?
The money the beneficiaries of the policy receive when the insured dies
What is cash value?
Part of the premium payments that grow tax-deferred over time. If your policy earns dividends these funds can also be added to the cash value and earn interest. If you need to access your cash value funds you can either take a loan or withdraw a portion.
How do riders work?
Riders are used to customize your policy and add additional value, and provide ways to get more death benefit or future access to the death benefit if you become terminally ill.
What is a dividend?
This is how an insurance company shares part of the profit with you. Dividends are not guaranteed and most often they are paid annually.
Annuities
What is an annuity?
An Annuity is an investment designed for protection from market risk while offering you a guaranteed rate of return. An Annuity is a contract between you and an insurance company. Annuities give you the option to simply let your money grow with interest, ability to access free withdrawals, or take systematic payments over a set number of years; there are even life time payment options. Annuities have many advantages:
- Tax Deferral
- Protection from Market Risk
- Diversification
- Guaranteed Interest Rate
- Access to Free Withdrawals
With the right Annuity, Sons of Norway can help you reach your long-term financial goals.
Any distributions are subject to ordinary income and tax, if taken prior to age 59 1/2, a 10% federal additional tax.
All guarantees are backed by the claims-paying ability of the issuing company.
Sons of Norway and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant.
Let’s talk about what type of life insurance will meet your personal needs: A Sons of Norway Financial Benefits Counselor can help!