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Products: Life Insurance Planning:
What are the Advantages/Disadvantages of Term and Permanent Insurance?

Term Insurance
Advantages

  • Initial premiums generally are lower than those for permanent insurance, allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest
  • It’s good for covering needs that will disappear in time, such as mortgages or car loans

Disadvantages

  • Premiums increase as you grow older
  • Coverage may terminate at the end of the term or become too expensive to continue
  • The policy generally doesn’t offer cash value or paid-up insurance


Permanent Insurance
Advantages

  • As long as the premiums are paid, protection is guaranteed for life.
  • Premium costs can be fixed or flexible to meet personal financial needs.
  • The policy accumulates a cash value against which you can borrow. (Loans must be paid back with interest or your beneficiaries will receive a reduced death benefit.) You can borrow against the policy’s cash value to pay premiums or use the cash value to provide paid-up insurance.
  • The policy’s cash value can be surrendered—in total or in part—for cash or converted into an annuity. (An annuity is an insurance product that provides an income for a person’s lifetime or a specified period.)
  • A Provision or “rider” can be added to a policy that gives you the option to purchase additional insurance without taking a medical exam or having to furnish evidence of insurability.

Disadvantages

  • Required premium levels may make it hard to buy enough protection.
  • It may be more costly than term insurance if you don’t keep it long enough.
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Bank Among Friends
First Minnetonka City Bank
First Minnetonka Investment Center is a registered branch of LaSalle St. Securities, LLC.
Securities are offered through LaSalle St. Securities, LLC., Advisory Services offered through LaSalle St. Investment Advisors, LLC.
 LaSalle St. Investment Advisors, LLC is affiliated with LaSalle St. Securities, LLC.- a registered broker/dealer.
Tam Hubert, CFP® and Kristi Remus are registered representatives of LaSalle St. Securities, LLC.
940 N Industrial Dr., Elmhurst, IL 60126-1131. Member FINRA / SIPC. Not a deposit. Not FDIC insured.
Not insured by any Federal Government agency. Not guaranteed by the bank. May lose value.
Disclaimer
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The Fair Housing Act prohibits discrimination in housing because of:

Mission

Enforce the Fair Housing Act and other civil rights laws to ensure the right of equal housing opportunity and free and fair housing choice without discrimination based on race, color, religion, sex, national origin, disability or family composition.

Major Goals

1. Reduce discrimination in housing by doubling the Title VIII case load by the end of 2000 through aggressive enforcement of civil rights and fair housing laws;

2. Promote geographic mobility for low-income and minority households;

3. Integrate fair housing plans into HUD's Consolidated Plans;

4. Further fair housing in other relevant programs of the Federal government; and

5. Promote substantial equivalency among state, local and community organizations involved in providing housing.