Insurance
The foundation upon which dreams are built,
starts with protecting what matters most.
Insurance Overview
FundaDream and its partners offer a variety of insurance products to meet your specific planning needs ranging from individual life insurance, disability, retirement planning, and more. Life insurance is designed with a foundational goal of safeguarding your family but can also play a crucial role in college planning, wealth building, cash accumulation, supplemental retirement income, and more.
What is Life Insurance?
Life insurance is a financial product that provides a tax-free payout, known as a death benefit, to designated beneficiaries when the insured person passes away. It helps protect loved ones from financial hardship by covering expenses such as funeral costs, debts, and lost income. Life insurance comes in various types, including term life (coverage for a set period) and permanent life (lifelong coverage with a cash value component). Connect with a financial professional to learn more.
Types of Life Insurance
Term Life Insurance
Life insurance that provides protection for a specified length of time.
Permanent (Whole Life) Insurance
Life insurance that provides protection for one’s lifetime with a savings component.
Term Life Insurance
If you need life insurance for only a specific number of years or aren’t sure you can afford a more permanent option, a term life insurance policy may be the right choice for you. FundaDream sources insurance from high quality carriers and can design your policy based on important factors such as term coverage period, affordability, insurer financial rating, etc. Depending on the insurer selected, term life premium payments typically remain unchanged throughout the policy term period. Connect with a financial professional today.
Permanent (Whole Life) Insurance
Whole life insurance is a permanent policy, which gives you guaranteed protection for your loved ones that lasts a lifetime. With whole life insurance, unlike term, you build guaranteed cash value, which you can use however you want. A common analogy is owning your policy through whole life insurance versus renting a policy through term insurance. Some carriers offer whole life insurance that earns dividends (Participating whole life insurance), which can be used to increase the death benefit and the cash value of the policy. Other options allow policy owners to use dividends to help pay premiums.
Whole Life Insurance Features and Benefits
Death Benefit
Many whole life insurance carriers provide a guaranteed death benefit, which means that your loved ones will receive a death benefit regardless of how long you live.
Building Cash Value
Whole life may be a powerful savings tool due to its cash value growth over time, which may be used to supplement retirement income, pay for college expenses, purchase a home or plan for emergencies.
Earning Opportunity
Many insurance carriers offer policy owners the opportunity to earn dividends on their policy. Although dividends are never guaranteed, many carriers have a strong track record of paying annual dividends consistently.
Universal Life Insurance
Universal life insurance is a type of permanent coverage that offers flexible premiums and adjustable death benefits, making it a good choice if your financial situation is less predictable. You can change how much you pay—even month to month—if your policy has sufficient cash value. The policy also builds interest-earning cash value and may offer a guaranteed death benefit to ensure your loved ones receive a payout when you pass. Connect with a financial professional today.
Variable Life Insurance
Variable life insurance is a type of permanent life insurance that combines a death benefit with an investment component. You can allocate part of your premiums to a variety of investment options, such as stocks and bonds, allowing the policy’s cash value to grow based on market performance. Unlike whole or universal life insurance, the cash value and death benefit in variable life insurance can fluctuate with investment returns, offering greater growth potential but also higher risk. Connect with a financial professional today.
IMPORTANT DISCLOSURES
* Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty if the policyowner is under age 59½.
Access to cash values through borrowing or partial surrenders will reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.
Product availability varies by carrier, state, and individual eligibility. Not all products listed are available in all states or to all applicants. Product descriptions on this page are for general informational purposes only and do not constitute a solicitation or offer to sell any specific insurance or annuity product. All products are subject to underwriting approval and applicable state insurance regulations. Riders and benefits are subject to additional charges, terms, conditions, and limitations. Variable products involve investment risk, including possible loss of principal, and are sold by prospectus. FundaDream Insurance Solutions, Inc. is a licensed California insurance corporation. Consult the applicable carrier contract for full terms, conditions, and limitations. FundaDream’s charitable giving is made from general corporate revenues at the sole discretion of FundaDream leadership and does not constitute compensation to any licensed insurance professional.
The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value for loans in the policy’s early years.
The information provided is not written or intended as specific tax or legal advice. FundaDream, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Insurance products and services are offered through FundaDream Insurance Solutions, Inc., California License No. 0M95835