CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
1021223-00006-00
Nate Obringer, RICP®
Financial Advisor
Prudential Advisors
9800B McKnight Road, Suite 223
Pittsburgh, PA 15237
Phone: 412-318-4129
Fax: 877-840-2322
Email: nate.obringer@prudential.com
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.
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.
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.
1001342-00001-00
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Offering investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Prudential and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Prudential, the Prudential logo, and the Rock Symbol are service marks of Prudential Financial Inc., and its related entities, registered in many jurisdictions worldwide. Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Prudential Advisors 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.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.