MCC Financial Services, Inc.

	*Why Life Insurance?* Statistics emphasize the need: Between 1995 and 1997, almost 40% of all deaths that occurred were people between the ages of 25 and 64.² More than half of Americans live from paycheck to paycheck.³ Millions of Americans are underinsured: in fact, during the past two decades, the number of households in America without life insurance has increased by 103% - even though the number of households has risen only 39%.¹ "Trends in U.S. Household Life Insurance Ownership, Life Insurance Marketing Research Association (LIMRA) Report, 2000. Death Rates by Age, Sex and Race: 1970 to 1997, U.S. Census Bureau, Statistical Abstract of the United States, 1999, age 95. Consumer Federation of America study conducted by Princeton Survey Research Associates, February 20, 2001 Reasons to Buy Life Insurance When you plan, one of the things you count on is continued income for yourself and your family. Your premature death could result in a drastic reduction of your family's standard of living. There are no U-turns on the road of life. We are all traveling on an inevitable trip from birth to eventual death. You may die sooner than expected or hopefully live a long and prosperous life. Life insurance addresses the tragedy of premature death by providing tax free funds to help survivors who depended on you to get on with their lives. Whole Life insurance or Universal Life insurance can provide additional income at retirement through policy cash values. Term Life Insurance Term Life Insurance is temporary life insurance protection for a specific period of time. It is the most basic form of life insurance. The premium on a Term policy is usually (depending on your age) low compared to other types of life insurance because it builds no cash value; you pay only for the cost of insurance (C.O.I.). The C.O.I. is the amount of money the insurance company charges to keep your life insurance policy in force. Term Insurance pays a specific lump sum to your designated beneficiary if you die within the period covered by the policy. The policy protects your family by providing money they can invest to replace your salary, and to cover immediate expenses incurred by your death. Term Insurance is best for young, growing families, whose financial needs are especially high but whose resources are often insufficient to cover those needs. Pros: Affordable coverage that pays only a death benefit, Term Insurance initially costs less than other insurance policies mainly because, unlike other policies, it builds no cash value. Cons: Term Insurance premiums increase with age because the risk of death increases, as people get older. Some Term Insurance premiums may rise each year (e.g., "Yearly Renewable Term), or after the initial guarantee period of 5, 10, 15, 20, 25 or 30 years. Over the age of 65, the cost of Term Insurance becomes very expensive, often unaffordable. Whole Life Insurance Whole Life Insurance is permanent life insurance protection for your entire life, usually to age 100. A Whole Life policy is contractually guaranteed not to lapse, if you pay sufficient premiums each year to keep the policy in force. Besides permanent lifetime insurance protection, Whole Life Insurance features a savings element that allows you to build cash value on a tax-deferred basis. A portion of the premiums you pay build up the savings element of the policy and are invested by the company. The interest rate return on your investment is added to the savings portion of the policy. This is how the policy builds cash value. In addition to crediting your policy with interest, "participating" policies issued by mutual insurance companies may also give you the opportunity to earn dividends. Dividends are a NON-guaranteed return of part of the premium intended to reflect a company's favorable operating experience. Pros: Whole Life Insurance has a savings element (cash value) which grows tax-deferred. If the contract is set up properly in advance, you might build up enough cash value to stop paying premiums by a certain age, or to borrow from the cash value (take a policy loan) during your lifetime on a tax-advantaged basis. Unlike Term Life Insurance, whose premiums eventually rise after the initial guarantee period, Whole Life Insurance premiums will not increase during your lifetime (as long as you pay the planned amount and repay any policy loans). Cons: Whole Life Insurance offers no premium flexibility or face amount flexibility; the plan you buy today remains fixed for life. It is therefore important to plan carefully, because Whole Life Insurance is not adaptable to insurance and/or retirement plans that change significantly. Universal Life Insurance Universal Life (UL), also called "Flexible Premium Adjustable Life Insurance," entered the life insurance market in the early 1980s as a more flexible version of Whole Life Insurance. Like Whole Life, UL features a savings element that grows on a tax-deferred basis. A portion of your premiums are invested by the insurance company in bonds, mortgages and money market funds. The return on the investments is credited to your policy tax-deferred. A guaranteed minimum interest rate applied to the policy means that, no matter how the investments perform, the insurance company guarantees a certain minimum return on your money. If the insurance company does well with its investments, the interest rate return on the accumulated cash value will increase Pros: Universal Life gives you the flexibility to adjust the death benefit as your needs change, as well as the flexibility to pay smaller or larger premiums - depending on your financial circumstances. This is often an important feature for families who may have fluctuations in their ability to pay. Cons: If your premium payments are too small for too long, the policy could lapse, leaving you without insurance protection. Also, if the insurance company does poorly with its investments, the interest return on the cash portion of the policy will decrease (but never below the minimum interest rate guaranteed in the contract). In this case, cash values will probably fall, forcing you to pay more premium in the later years.

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© 2012 MCC Financial Services, Inc. Securities offered through Registered Representatives of Cadaret, Grant & Co., Inc., Member FINRA/SIPC Licensed in the States of NY, CA, FL, IL, MA, NC, and PA. MCC Financial Services, Inc. and Cadaret, Grant & Co., Inc are separate entities.