Life Insurance and Life Insurance Plans

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Life insurance

Life insurance solutions can help you plan your estate and secure the future of those who matter to you most by shielding them from the financial consequences of your death. Insurance proceeds are income tax-free and are paid directly to your beneficiaries. Because the process bypasses probate, it saves time and money.

Why is life insurance important?

Life insurance is an effective and efficient way to help those you care about to maintain their quality of life, repay debt and fund education in the event of an untimely death. Some RiverSource^® insurance policies can also help you build cash value for future goals, such as retirement. Use our life insurance product selector to find out more about our policies.

Life insurance planning with Ameriprise Financial

When you begin your life insurance search with Ameriprise Financial, an advisor will guide you through every step of the process. Working together, you will:

1. Define the role of life insurance in your financial plan.

2. Explore what matters most to you.

3. Assess your coverage needs. You and an advisor will figure out how much life insurance you need by gathering information on your:

Current monthly expenses
Other family commitments (lump sum payments)
Current life insurance and savings
Survivor's expected net annual income vs. income required to cover expenses for life
Total basic survivor needs

4. Select the right type of coverage for you.

Term insurance	Permanent insurance
Purchased to cover a temporary need	Purchased for long-term protection
You pay an annual premium for a specific number of years for which you receive a predetermined amount of life insurance protection. If the insured passes away during the specified years, beneficiaries collect the proceeds of the policy. If the insured passes away after the specified years, the beneficiaries receive no proceeds. Policy does not build cash value	As long as premiums are paid on time and the policy remains in force, the death benefit will be paid. It is important to appropriately fund your policy and avoid excessive withdrawals to prevent your policy from lapsing. Types of permanent policies include whole life, universal life, variable universal life. Policy may build a cash value, which can be borrowed against tax-free to service other financial purposes.

Term insurance

Permanent insurance

Purchased to cover a temporary need

Purchased for long-term protection

You pay an annual premium for a specific number of years for which you receive a predetermined amount of life insurance protection.
If the insured passes away during the specified years, beneficiaries collect the proceeds of the policy. If the insured passes away after the specified years, the beneficiaries receive no proceeds.
Policy does not build cash value

As long as premiums are paid on time and the policy remains in force, the death benefit will be paid. It is important to appropriately fund your policy and avoid excessive withdrawals to prevent your policy from lapsing.
Types of permanent policies include whole life, universal life, variable universal life.
Policy may build a cash value, which can be borrowed against tax-free to service other financial purposes.

¹2005 LIMRA study

RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA and SIPC.

Loans and withdrawals may cause a permanent reduction of policy cash values and death benefit and negate any guarantees against lapse. Although loans are generally not taxable, there may be tax consequences if the policy lapses or is surrendered with a loan (even as part of a 1035 exchange). It is possible that the amount of taxable income generated at the lapse or surrender of a policy with a loan may exceed the actual amount of cash received. Withdrawals are generally taxable to the extent they exceed basis in the policy. If the policy is a modified endowment contract (MEC), pre-death distributions, including loans, from the policy are taxed on an income-first basis, and there may also be a 10% federal income tax penalty for distributions prior to age 59 1/2.

Next steps

Are your dreams covered?

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Insurance

44% of surveyed U.S. households say they need more life insurance than they already have.¹

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*Ameriprise helped pioneer the financial planning process. Our unique approach is about more than just numbers, it's both science and art. We have more financial planning clients and more CERTIFIED FINANCIAL PLANNER^TM professionals than any other company in the U.S. based on data filed at adviserinfo.sec.gov and documented by the Certified Financial Planner Board of Standards, Inc. as of December 31, 2007.