Life Insurance

Life Insurance Solves a Variety of Life’s Challenges
Life Insurance is an essential component of a complete financial plan, helping to provide protection for your future. Your financial professional can help you determine the type and amount of insurance you need for your specific situation. Whether you need the temporary protection of term, or a more permanent solution such as universal life, Columbus Life has the solution. Explore the different types of life insurance that are available.

Universal Life

Universal Life insurance offers the best of two worlds--a set amount of coverage with a tax-deferred, cash accumulation account based on current interest rates. This permanent insurance plan generally provides lower premiums for those people who have life insurance needs that will stay relatively constant over their lifetimes, or who desire the cash value build-up universal life policies can provide.

Some Universal Life products offer you the flexibility to design the product to meet your needs, with the ability to increase or decrease the amount of coverage or premium payments as your circumstances or long-term needs change. It can be a flexible way to meet your long-term insurance needs.

While Universal Life insurance policies maintain certain guarantees, they provide benefits that are based on current assumptions for the underlying interest, mortality, and expense formulas. These current assumptions are based on current market conditions and actuarial assumptions, which may change over periods of time. Changes in these assumptions may require additional premium payments in order to meet your needs. These products should be purchased with a thorough understanding of the impact changing circumstances will have on policy benefits and values. A flexible universal life policy can address a wide variety of financial planning needs such as:

  • Tax-deferred accumulation
  • Charitable bequests
  • Efficient transfer of assets to beneficiaries
  • Business indemnity against loss of a key employee
  • Funding for buy-sell agreements at death or upon disability or retirement1
  • Supplemental benefit programs for key people (e.g., DBO salary continuation, split dollar)
  • Income replacement at death for dependents
  • Final expense cash needs

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Indexed Universal Life

Indexed universal life offers growth potential through Indexed Interest Credits with protection from downside risk through a minimum interest rate guarantee. Indexed universal life also offers all the benefits associated with traditional insurance products.

With its significant cash value accumulation potential and flexibility, indexed universal life is easily customized for both personal and business applications such as:

  • Tax-deferred accumulation and tax-free income potential
  • Charitable bequests
  • Efficient transfer of assets to beneficiaries
  • Business indemnity against loss of a key employee
  • Funding for buy-sell agreements at death or upon disability or retirement1
  • Supplemental benefit programs for key people (e.g., DBO salary continuation, split dollar)
  • Income replacement at death for dependents

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Survivorship Universal Life

Survivorship Universal Life and Survivorship Variable Universal Life are flexible premium life products issued on two insureds' lives jointly, with the death benefit payable at the second death. Both products feature premium payment and withdrawal flexibility, as well as riders and benefits that meet the special planning needs of high net worth individuals. Survivorship life policies provide funds to your beneficiaries when they are needed most -- upon the death of the second insured. Survivorship Universal Life and Survivorship Variable Universal Life offer features and benefits such as:

  • Last expense needs at second death
  • Potential retirement income or income replacement at first death1
  • Efficient transfer of assets to beneficiaries
  • Business indemnity against loss of key joint business owner
  • Charitable planning

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Term Life

There may be times when you need financial protection for a limited period. Term life insurance can provide maximum protection with minimal cost, with coverage for a specific period of time. It is pure life insurance that does not increase in value. If you die within the designated time frame, your beneficiaries will receive the death benefit amount. Generally, the younger you are, the lower the premium — or price — you pay for term insurance. Some term products offer flexible features such as convertibility to a permanent product and return of premium – these are a good choice when you cannot predict your future needs.

Convertibility means when you decide that you need a more permanent form of insurance, your policy can be converted into a permanent life product without new evidence of insurability. Return of premium allows you to recover part of your insurance premiums at the end of the agreed upon term if you are still living. Term is an ideal solution for a variety of business and personal challenges that could arise from an unexpected death:

  • Protection for a mortgage, car loan or other personal debt
  • Maintain your family’s standard of living
  • Provide for your children’s education expenses
  • Cover a business loan
  • Fund a buy/sell agreement for your business
  • Financial protection for your business from loss of a key employee
  • Pay for final expenses
  • Cover final medical bills

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Variable Universal Life

Variable Universal Life insurance offers the security and tax advantages of life insurance coupled with the growth potential of equity investing. Variable life insurance products offer a unique way to preserve your assets from current taxation, transfer them to your beneficiaries, and accumulate additional assets at the same time. Variable Universal Life addresses a wide range of insurance needs:

  • Coverage of death benefit needs
  • Potential retirement income or funding for a child's education1
  • Transferring assets to heirs
  • Hedging death benefits against the effects of inflation
  • Protecting business against the loss of a key employee
  • Providing funds for a buy-sell agreement
  • Providing employee benefits such as split dollar or deferred compensation

With a variable universal life product, you may allocate your premium to an account paying a fixed rate of interest (Fixed Account), or to one or more separate investment options (Sub-Accounts). You have the risk of loss, but you also have the opportunity for gains greater than those normally available in a life insurance product.

Investment return and principal value of a variable sub-account will fluctuate and units, when redeemed, may be worth more or less than their original cost.

An investor should carefully consider the investment objectives, risks, charges and expenses found in the prospectus. For a Columbus Life product prospectus containing this and additional information, click here or call 800-677-9595 or view our contact us page. Please read the prospectus carefully before investing or sending money.

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1 Lifetime benefits are subject to policy having sufficient cash value; use of cash value may reduce death benefit.

These product descriptions are general and do not pertain to a specific Columbus Life policy. There are exclusions and/or limitations in the policies, and policies and features may vary by state.
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Updated 08/20/2015