Life Insurance

CRJ Business solutions offers two types of life insurance - Term Life Insurance and Permanent Life Insurance. Here's a breakdown of both types of insurance and how they work:

Term Life Insurance Overview

A term life insurance policy provides coverage for a specific amount of time, usually anywhere from 10-35 years, depending on the carrier. It is the most affordable type of life insurance that offers a fixed death benefit and premium, assuming payments are made on time. Once the insured passes away, the face value is paid out to beneficiaries and typically won't count as taxable income.

"Classic" Term Life Insurance

"Classic" or "Old" Term life insurance refers to a much earlier version of a term life insurance policy. Depending on the carrier, there are typically no riders available and the death benefit only pays out once the insured passes away.

"Modern" Term Life Insurance

"Modern" or "New" Term life insurance refers to a recent version of a term life insurance policy that offers enhancements, like living benefit riders. This means that the policy will pay out once the insured passes away or if the insured experiences a qualified critical, chronic or terminal illness. This means that the insured does not need to pass away to utilize the policy's death benefit and can accelerate the available funds to cover the costs of care, recoup lost income or any other purpose the insured may need to use the funds for.

The CRJ Business Solutions Difference for Term Life Insurance

At CRJ Business Solutions, we only sell "Modern" term life insurance policies because they have living benefit riders built into their products for no additional cost. These term products are also fully convertible, meaning they can be converted to a permanent life insurance policy, if your coverage needs change down the road.

We know how important flexibility is to our clients so we want to make sure the products we sell are flexible as well, while offering the maximum protection and value possible.

Permanent Life Insurance Overview

A permanent life insurance policy provides lifetime coverage (even up to and over age 100) and will pay the death benefit as long as premiums are paid. Once the insured passes away, the face value is paid out to beneficiaries and typically won't count as taxable income.

Unlike term life insurance policies, permanent life insurance products can also build cash value using the premium dollars contributed over the life of the policy - one of the main reasons why they are more expensive than term policies. This money grows tax-deferred and can be used while the insured is still alive. Over time, the cash value can grow a considerable amount and can be used in many ways, like borrowing against the policy with certain tax advantages, pay premiums for the policy and even surrendered for cash that can be used for retirement, emergencies or qualified events.

Permanent life insurance policies also have the option of riders (add-ons), that can be selected based on specific goals or needs of the insured. Riders can be built in for no cost or can incur a cost, depending on the type of rider and carrier.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that provides lifelong coverage with a guaranteed rate of return and level (same/never changing) premiums, assuming premiums are paid in full and on time. This type of policy also builds cash value over time and the insured has the option to withdraw funds or borrow against it. Rules on how and when the insured can do this will vary between carriers so make sure to follow your carrier's guidelines so you don't inadvertently reduce your policy's death benefit or create a tax burden.

Universal Life Insurance

Universal life (UL) insurance is a type of permanent life insurance that offers the flexibility to change the death benefit and adjust the monthly premiums. Similar to whole life insurance, UL coverage can provide coverage for the lifetime of the insured and builds cash value over time, where the insured has the option to withdraw funds or borrow against it. The key difference between a whole life and UL is for UL policies, the insured can increase or decrease premiums, or death benefit payout amount - this is not available for whole life policies.

Additionally, the insured can skip a premium payment, as long as there is enough cash value to cover the cost of the insurance premium that month. Rules on how and when the insured can do this will vary between carriers so make sure to follow your carrier's guidelines so you don't inadvertently reduce your policy's death benefit or create a tax burden.

Indexed Universal Life Insurance

Indexed Universal life (IUL) insurance is a type of permanent life insurance that works just like Universal Life (UL), offering the flexibility to change the death benefit and adjust the monthly premiums. Similar to whole life and UL insurance, IUL policies can provide coverage for the lifetime of the insured and builds cash value over time, where the insured has the option to withdraw funds or borrow against it.

IUL and UL policies are virtually the same except for how the interest is earned. For IUL's, interest is based on stock market index options, where the insured selects the index or indices they'd like to use, such as the S&P 500. Funds don't earn a fixed rate of interest but they usually come with an rate of return based on the performance of the indices, which historically perform well.

Additionally, the insured can skip a premium payment, as long as there is enough cash value to cover the cost of the insurance premium that month. Rules on how and when the insured can do this will vary between carriers so make sure to follow your carrier's guidelines so you don't inadvertently reduce your policy's death benefit or create a tax burden.

The CRJ Business Solutions Difference for Permanent Life Insurance

At CRJ Business Solutions, we sell whole life, UL and IUL products. Each of these products can be customized to meet your specific budget, needs and goals. Need an alternate college funding solution? We have that. Looking to build generational wealth with liquidity in 10-20 years? We have that too - all while giving you life insurance protection!

Additionally, the carriers we partner with have living benefit riders (chronic, critical and terminal illness) built into their products for no additional cost. There are also other riders that can be added onto the policies for an additional cost and will vary from carrier to carrier.

We know how important flexibility is to our clients so we want to make sure the products we sell are flexible as well, while offering the maximum protection and value possible.