Erie Insurance

Life Insurance and Retirement - Erie Insurance

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Category: Erie Insurance
Published on Thursday, 15 July 2010 10:01

erie-insurance-lifeWe know you love your children, your home, and all the things that have made your life, well … your life. That’s why we want to encourage you, without pushing you, to consider life insurance from ERIE. And because your ERIE Agent is going to take as much time as you want to help you with your options, we’re feeling you’re going to feel good about the process.

 

Life Insurance and Retirement

Why ERIE for life insurance? Here’s a quick glimpse.

  • Choose from a variety of life insurance policies* available to fit your personal needs
  • Permanent (whole life) life insurance or universal life insurance provides coverage for your entire life and builds cash value. (It just keeps building, even when you are not looking.)
  • Term insurance provides affordable coverage for a specific number of years
  • Combine both term and permanent policies and you’ve got a customized protection package for your family

Why ERIE for retirement planning? Our business is also to help people save money for retirement. With so many different retirement savings plan options — 401(k), annuities, Traditional Individual Retirement Accounts (IRAs) and Roth IRAs — it can be a little overwhelming trying to decide which plan is right for you. No matter how far along you are in your financial planning, ERIE can help.

Some of the things we offer:

  • Traditional and Roth IRAs with a variety of payout options
  • Rollover or transfer options in case you want to move all or part of your retirement savings into an annuity
  • CD-type of annuity with a guaranteed, tax-deferred interest rate for 3, 5 or 7 years, depending on the term you choose

An annuity is still the only financial instrument that allows you to set up a guaranteed income stream that you cannot outlive.

Talk to an ERIE Agent who can provide you with more information about life insurance and retirement planning.
* Erie Family Life products are not available in New York.

 

Whole Life Insurance

For most people, the need for life insurance may decrease, but it never goes away. As time passes, circumstances and plans change, but the need for protection never disappears. That’s why you should consider Erie Family Life’s Permanent Life Insurance Series,* which can give you peace of mind with these features:

Policy Features

  • Guaranteed life insurance protection that will not decrease.
  • Guaranteed cash value that can be borrowed to take advantage of future opportunities.
  • Guaranteed premium that does not change, regardless of changes in your health.
  • Minimum policy size is $5,000.
  • Issue Ages:
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    • Whole Life: Ages 0-85
    • 20-Pay Life: Ages 0-70
  • Erie Family Life offers two permanent life products that provide lifetime protection: a simplified issue plan that requires only six medical questions and a fully underwritten plan. Each offers two options:
  •  
    • A 20-Pay option where the policy is paid up in 20 years
    • A whole life option where the premium is paid to age 100
  • Each new plan can help you meet a variety of needs, including:
  •  
    • Funding for your children's’ education.
    • Payment of medical bills, final expenses and estate settlement costs.
    • Financial support for your dependents.
    • Supplemental retirement income.

Riders
The Accelerated Benefit Rider is automatically included without cost on all Permanent Life Insurance policies. This rider pays up to 50 percent of the death benefit (up to a maximum aggregate amount of $250,000) to any insured who is diagnosed as being terminally ill and expected to die within 12 months of diagnosis.

Optional Riders

  • Waiver of Premium Rider (ages 15-55)
  • Children’s Term Rider
  • Guaranteed Insurability Option Rider (ages 0-37)


* Erie Family Life products are not available in New York.

 

Universal Life Insurance

Universal life insurance* provides financial security for your family or business by combining the best features of term and permanent life insurance. It includes life insurance protection with an account value that earns tax-deferred interest. It can also be adjusted to meet your changing needs. Choose the amount of protection you want and design a premium schedule to match your budget.

Why Buy Universal Life?

  • To fund your childrens’ education.
  • To provide financial support for your dependents.
  • To supplement your retirement income.
  • To satisfy business obligations.
  • To provide for final expenses and estate settlement costs.


Erie Family Life offers two universal life products. ERIEflex3 – Asset Builder is a flexible premium product designed to build cash value. ERIEflex4 – Protection guarantees death benefit protection at an affordable premium.

Policy Features
Minimum Policy Size

  • $50,000 for each product

Issue Ages

  • 15 days through age 85 for each product

Death Benefit Options

  • ERIEflex3
    • Option A (Level): death benefit equals the face amount
    • Option B (Increasing): death benefit equals the face amount plus account value
  • ERIEflex4
    • Option A (Level) only

Interest Rates

  • Both products credit a guaranteed minimum 3% interest rate for your lifetime and earn a current interest rate if higher than the guaranteed minimum.


Additional Options
ERIEflex3

  • Waiver of Deductions Disability Benefit Rider
  • Guaranteed Insurability Option Rider
  • Children’s Term Rider

ERIEflex4

  • Waiver of Specified Premium Disability Benefit Rider
  • Guaranteed Insurability Option Rider
  • Children’s Term Rider

The Accelerated Benefit Rider is automatically included without cost on all ERIEflex3 and ERIEflex4 policies. This rider pays up to 50 percent of the death benefit (up to a maximum aggregate amount of $250,000) to any insured who is diagnosed with a terminal illness and expected to die within 12 months of diagnosis.

* Erie Family Life products are not available in New York.

 

Term Life Insurance

Term life insurance is a popular form of coverage that allows you to purchase large amounts of protection at attractive premium rates. Term insurance is ideal for protecting a mortgage, providing replacement income or funding college for a child in the event of a premature death. Erie Family Life’s term coverage* provides coverage to age 95. The face amount of the policy remains level and the policyowner can select from a 10, 15, 20 or 30-year guaranteed level premium period.

Policy Features

  • Minimum policy size: $50,000
  • Rate Classifications: Ultra Select Non-Tobacco, Super Select Non-Tobacco, Select Non-Tobacco, Standard Non-Tobacco, Select Tobacco and Standard Tobacco. Availability of rate classifications varies by issue age and amount of coverage.
  • While the policy is in force, you may convert it to cash value insurance during the guaranteed level premium period or until age 70, whichever is earlier (guaranteed minimum of 5 years convertibility), without evidence of insurability. We guarantee this conversion privilege regardless of health, occupation or hobbies.

Issue Ages

  • Minimum issue age: 15 days
  • Maximum issue ages:
    • 10 year plan: age 70
    • 15 year plan: age 65
    • 20 year plan: age 60
    • 30 year plan: age 50
    • 30 year plan: age 47 (all states) for male Select Tobacco and Standard Tobacco Classes

Riders Available

  • Premium Waiver Benefit – This rider allows insurance protection to continue, with no further premium payment necessary, if you become totally disabled for more than six months.
  • Children’s Term Insurance Rider – This rider is designed for individuals to include limited amounts of term insurance coverage on their children.


* Erie Family Life products are not available in New York.

 

Group Life Insurance

Business owners in today’s competitive job market recognize the importance of attracting and keeping good employees. Providing group life insurance is an economical way for you to provide a quality benefit that your employees value and appreciate. Regardless of the number of employees you have, Erie Family Life* has a plan designed to protect your full-time workers. All of this can be accomplished through the convenience of a simplified billing statement.

Two types of plans are available. Group Term Life is affordable life insurance protection paid as a benefit by the employer. LifeworksSM is a voluntary payroll deduction program for the employee. You have the choice of a variety of benefit schedules.

Some of the highlights include:
Group Term Life

Group Term Life is designed to cover all employees in a plan with premiums typically paid 100 percent by the employer. This is an annually renewable term policy providing a guaranteed death benefit.

  • Basic Coverage – $10,000 to $500,000 per employee. The maximum coverage amount is dependent on the number of employees within a group. Three different insurance schedules are available: flat amount of coverage, coverage amount varying by work classification and coverage as a multiple of your employees' salaries.
  • Supplemental Coverage – An additional amount of insurance in excess of basic coverage that is paid by the employee. Basic and supplemental coverage are subject to maximum limits.
  • Waiver of Premium – This benefit is automatically included for ages 18 to 59. The Waiver of Premium benefit continues the insurance protection through age 65 with no further premium payments should a covered employee become totally disabled for more than nine months prior to age 60.
  • Conversion – Upon termination of employment, a covered employee may convert all or part of his or her insurance coverage without evidence of insurability to any policy offered by Erie Family Life for group conversion.
  • Accidental Death and Dismemberment (optional) – If the benefit is included on your group contract and an insured employee dies as the result of an accident, Erie Family Life will pay an additional amount equal to the life insurance benefit. In the event the employee loses a hand, foot or sight in one eye, Erie Family Life will pay an amount equal to one-half the life insurance benefit for a single loss or the full benefit for any combination of multiple losses.
  • Dependant Coverage (optional) – If dependent coverage is included in the group life contract, covered employees can elect coverage for their spouses and eligible dependent children.

Lifeworks
LifeworksSM, Erie Family Life’s voluntary payroll deduction program, may be offered in conjunction with our group life insurance plans at no cost to you. As the employer, you simply agree to let your Erie Insurance Agent meet with each employee and process the scheduled deductions from their paychecks.

  • Types of Coverage – Both Whole Life and 15 Convertible Term insurance plans are available.
  • Amount of Coverage – $5,000 to $150,000 depending on the plan and age of the insured.
  • Dependent Coverage Available – Full-time employees may purchase additional life insurance for their spouses and eligible dependent children and have the premiums conveniently deducted from their paychecks.
  • Waiver of Premium – This benefit is automatically included at issue ages 15 to 55.
  • Portable Coverage – These plans are individually owned by the employees. If they leave employment, they can continue with their life insurance coverage.


* Erie Family Life products are not available in New York.

 

Individual Retirement Accounts (IRAs)

Is your IRA* guaranteed to grow? IRAs from Erie Family Life are. Whether you choose a Traditional, Roth, SEP or SIMPLE IRA, your money will increase with Erie Family Life. IRAs are funded with a fixed rate annuity. Check our current interest rates.

Traditional IRA – If you qualify, your contributions to a Traditional IRA are tax-deductible. For 2009, up to $5,000 can be deducted. Taxpayers over age 50, may contribute an extra $1,000 from 2009 – 2010.

Roth IRA – Contributions to a Roth IRA are not tax-deductible. The principal benefit of a Roth IRA is that qualified withdrawals are tax-free. Additionally, there are no mandatory withdrawals at age 70 1/2. To learn more, click the link, or talk to an Erie Insurance Agent.

SEP-IRA or SIMPLE IRA – Are you self-employed? A SEP-IRA or a SIMPLE IRA could make sense. These “employer-sponsored” IRAs have special rules and additional benefits like higher contribution limits.

Are you changing jobs? You can transfer money from a 401k or other qualified plan to an Erie Family Life IRA without paying tax. Your local Erie Agent has the details.

* Erie Family Life products are not available in all states

 

Annuities

Have you seen the price of eggs lately? How many people can easily afford to have a nest egg? We really get this. Hey, we’ve got families and cars and wouldn’t mind taking a vacation now and then either. So we say start simple. Maybe with something as sensible as an Annuity from ERIE.*

Here’s what you can look forward to

  • A safe investment alternative that includes guaranteed interest rates, tax deferral, and an option to have guaranteed income for life.
  • Fund qualified retirement plans such as Roth, Traditional or Simple IRAs or a Simplified Employee Pension (SEP)
  • A tax-deferred savings plan that is not subject to annual deposit limits
  • Use it to rollover qualified funds from an employer’s retirement plan, such as a 401(k) when changing jobs

Portfolio plans
Erie Family Life's annuity portfolio consists of the following plans:

  • Flexible Premium Deferred Annuity (FPDA) – The FPDA allows you to make scheduled or intermittent payments into a retirement savings plan that will be available when you need it. This plan can also be used as a non-qualified savings vehicle for retirement.
  • Single Premium Deferred Annuity (SPDA) – If you have $10,000 or more to invest, a Single Premium Deferred Annuity is an excellent choice. You may choose a guaranteed period of 3, 5 or 7 years. Depending on the amount of your deposit, bonus rates are available.
  • Single Premium Immediate Annuity (SPIA) – The SPIA is an excellent choice for someone who desires an immediate source of income. Income options include period certain, life annuity, life annuity with periods certain and joint and survivor annuity.


* Erie Family Life products are not available in New York.

 

Source: Erie Insurance