About Us

Life insurance policies come in several types, each designed for different financial goals, time horizons, and protection needs. Here’s a clear breakdown of the major types, their key features, and best-fit use cases:

1. Term Life Insurance

Overview:

• Provides coverage for a set period (typically 10, 20, or 30 years).

• Pays a death benefit if the insured dies during the term.

• No cash value component (pure insurance).

Pros:

• Lowest cost per dollar of coverage.

• Simple and easy to understand.

• Great for temporary needs.

Cons:

• Coverage ends when the term expires (unless renewed at a higher rate).

• No savings or investment component.

Best for:

• Income replacement during working years.

• Covering temporary debts (like a mortgage or college costs).

• Young families seeking affordable protection.

2. Whole Life Insurance

Overview:

• Permanent coverage (lasts your entire life).

• Includes a guaranteed cash value that grows at a fixed rate.

• Premiums are level and guaranteed.

Pros:

• Guaranteed death benefit and cash value accumulation.

• Can borrow against the cash value tax-free.

• Predictable and stable.

Cons:

• Higher premiums than term life.

• Less flexibility — fixed premiums and benefits.

Best for:

• Long-term estate planning.

• Building guaranteed, conservative cash value.

• People wanting lifetime coverage without managing investments.

3. Universal Life Insurance (UL)

Overview:

• Permanent coverage with flexible premiums and adjustable death benefit.

• Cash value grows based on interest rates (credited by the insurer).

Pros:

• Flexibility to change premiums and death benefit.

• Potential for higher cash value growth than whole life.

Cons:

• Returns depend on market interest rates.

• If cash value underperforms, policy could lapse without additional premiums.

Best for:

• Individuals seeking lifetime coverage with flexibility.

• Those who want potential cash value growth but prefer lower risk than variable policies.

4. Variable Life Insurance (VLI)

Overview:

• Permanent policy with investment options (sub-accounts similar to mutual funds).

• Cash value and death benefit fluctuate with market performance.

Pros:

• Potential for significant cash value growth.

• Policyholders control investment allocations.

Cons:

• Higher risk—poor market performance can reduce cash value.

• More expensive and complex due to investment components.

**Jemstone Financial Services will not offer Variable Life Insurance policies as we strongly deem them to involve unnecessary and unacceptable risks.**

5. Indexed Universal Life Insurance (IUL)

Overview:

• Permanent coverage where cash value growth is tied to a stock market index (e.g., S&P 500).

• Gains are sometimes capped but protected from losses (floor rate).

Pros:

• Superior market-linked growth potential with downside protection.

• Flexible premiums and death benefit.

• Provides potential for substantial tax-free income in retirement years.

• IUL's perform nicely in premium financing contracts.

Cons:

• Caps limit upside potential.

• Can be complex—fees and crediting methods vary by insurer.

Best for:

• People wanting to balance growth and protection.

• Tax-advantaged accumulation with significantly less risk than variable life.

6. Final Expense / Burial Insurance

Overview:

• A small whole life policy (typically $5,000–$25,000).

• Designed to cover funeral and final expenses.

Pros:

• Easy to qualify (sometimes no medical exam).

• Permanent coverage.

Cons:

• High cost per dollar of coverage.

• Limited death benefit.

Best for:

• Seniors or those with health issues wanting simple coverage for end-of-life costs.

Quick Recommendations:

• Young families → Term Life

• High earners planning wealth transfer → Whole or Indexed UL

• Business owners/legacy planning → Universal or Indexed UL

• Retirees/seniors → Final Expense or Small Whole Life

• Investment-focused individuals → Indexed UL

SOME WEALTH STRATEGIES THAT WE RECOMMEND ARE:

PREMIUM FINANCING for TAX-FREE INCOME GENERATION 

Assisting high-income and/or high-net-worth individuals in planning for substantial future tax-free income has become a key area of business for Jemstone Financial Services. Using our network of veteran financial services professionals we develop a client-specific strategy that enhances growth and stability using life insurance-collateralized loans as the basis for the program. We only work with A-rated carriers and the very best lenders in the industry.

Premium Financing offers the upfront leverage to generate significant potential cash value inside a properly designed life insurance contract that can provide the income sufficient to maintain the client’s lifestyle throughout retirement. With the uncertainties of future tax rates and the volatility in the market, we employ the indexed universal life policies with tax-free loans (distributions) and zero-floor interest crediting options. 

PREMIUM FINANCING for ESTATE PLANNING

Estate Planning involves the careful and thorough consideration of the various requirements of estate transfer and the sometimes complicated tax contingencies. Working with expert teams of advisors in these respective areas and bringing the industry’s top insurance and lending professionals together we can identify the best solution that balances the client’s needs and financial capabilities.

Our goal is to present the most effective approach to accomplishing the client’s estate transfer. By providing custom-designed Premium Financing strategies each client experiences the peace of mind of knowing that they have optimized their estate planning. 

DISTRIBUTION SOLUTIONS for QUALIFIED ACCOUNTS

Too often wealthy individuals are frustrated by the high taxes required at the time of withdrawal from their qualified accounts such as 401(k)’s and IRA’s. In many cases these individuals are actually overpaying taxes simply due to lack of knowledge. Jemstone Financial Services has teamed with seasoned financial experts who are well-versed in the current IRS Code and relevant company benefits options to offer sound alternatives to business owners and executives.

Depending on market conditions, your 401(k) can climb or take a drastic drop. If your 401(k) feels too volatile—likely due to market swings—there are several alternatives or complemental approaches you can consider, depending on your goals, time horizon, and risk tolerance. One often overlooked determent to the 401(k) is the exorbitant fees charged for their management. Brokers make a handsome fee, even while your fund is dropping severely! Because every individual's situation is truly unique, no one single simple approach should be suggested here. However, in general, Jemstone Financial Services suggests the employee consider accepting the matching funds often offered by the employer. After all, it amounts to free money. 

Many clients prefer lowering risk by employing indexed funds within the Index Universal Life (IUL) Life Insurance Policies or the Index Annuities, which does not place their funds in the market, but only ties them to an index. These funds tend to rise when the market climbs, but never retreat due to a market drop. Management fees for these types of contracts are minimal compared to typical brokerage fees. Often, our client's accounts out-perform the market with substantially lower risks involved.

Typically, indexed annuities provide guaranteed returns or principled protection. They can provide the potential for a lifetime income stream. These instruments are best used by long-term investors with lower risk tolerance, seeking guaranteed income and downside protection. 

Among the various alternatives available is the opportunity to purchase precious metals. Often clients with low risk tolerance appreciate this hedge against inflation and currency risk. Jemstone Financial Services often recommends approximately 10-20% of a client's total portfolio involve precious metals in some capacity.

If you tell us more about your situation, we could tailor our response for your scenario. For example, giving us your age, your retirement horizon, your risk tolerance [conservative, moderate, or aggressive], your income level, and your tolerance to locking up funds for a period of time, and several other personal preferences or requirements would help us point you to the best strategy for your financial goals.

Employers recognize the substantial cost of recruitment and retention of key executives Jemstone Financial Services offers the Tri-Zen Premium Financing Strategy that applies leverage to enhance the benefits the employer could make available. 

Often business owners cannot afford the large financial sums required to entice key contributors, but with the bank loan added to the business investment the Tri-Zen Plan creates an irresistible benefit for the executive. Typically, the death benefit, living benefits, and tax-free incomes are quite substantial—far beyond what the business could have otherwise offered. Many business owners establish a vesting schedule, which effectively creates the attractive "golden handcuffs" desired. There are a variety of different  types of Index Universal Life (IUL) policies applicable here: including "Key Man", Buy-Sell, and other business-specific Life Insurance options. 

Being your own bank using an Index Universal Life (IUL) insurance policy means leveraging the cash value of your life insurance policy as a source of financing—instead of relying on traditional banks or lenders—while your money continues to grow inside the policy.

Let’s break down how it works and what it really means:

1. What an IUL Policy Is

An Index Universal Life (IUL) policy is a type of permanent life insurance that:

• Provides a death benefit to your beneficiaries, and

• Builds cash value over time based on the performance of a stock market index (like the S&P 500),

• but your money is not directly invested in the market, so you’re protected from market losses (there’s a floor, often 0%),

• and you enjoy a portion of market gains (subject to a cap rate or participation rate).

2. Building Cash Value

Part of your premium goes into the cash value portion of the policy.

Over time, this cash value grows tax-deferred and can be accessed while you’re alive.

3. Becoming “Your Own Bank”

Here’s the key idea:

• You can borrow against your cash value—not withdraw it—to fund large purchases, business ventures, real estate, education, etc.

• The insurance company lends you the money using your cash value as collateral.

• Your cash value continues to earn interest and index growth as if it were never touched (depending on the loan type).

This means you can:

• Access liquidity without triggering taxes,

• Repay the loan on your own terms (no mandatory schedule),

• And still have your underlying money growing in the policy—hence, “being your own bank.”

4. Why People Use This Strategy

People use IULs for:

• Tax-free retirement income (via policy loans instead of taxable withdrawals),

• Opportunity cost recapture (your money grows even while you use it),

• Asset protection (in many states, cash value is protected from creditors),

• Legacy planning (death benefit for heirs).

5. Example

Let’s say you’ve built up $200,000 in your IUL’s cash value.

• You need $50,000 for a down payment on a rental property.

• You borrow $50,000 from the insurance company.

• Your $200,000 stays intact and keeps earning interest.

• You pay the loan back on your terms—or have it deducted from your death benefit later.

In essence, you’ve acted as your own lender—instead of withdrawing from savings or taking a bank loan.

6. Important Considerations

• IULs can be complex and fee-heavy early on.

• You must fund them properly (overfunded, not minimum premium) to make the banking concept work.

• Poorly structured or unmanaged policies can lapse and cause tax consequences.

• This strategy works best with guidance from a licensed life insurance professional familiar with IUL “infinite banking” setups.