Death insurance versus Life Insurance with Living Benefits

My father did not believe in life insurance. He called it death insurance. As much as I hate to admit it, he had a point. Someone had to die in order to utilize its benefits; but not any longer. We now have Life Insurance for Life. It is the newest thing protecting your family from financial ruin. We hear of the term “multitasking” all the time. Life insurance for Life, also known as “Living Benefits,” is a wonderful insurance product that provides multiple benefits depending on what life throws at you. There are three major things that can play havoc with your family’s financial well being. One is dying too soon – income stops. Two is living too long- you can run out of money. Three- becoming ill – medical care can suck up all your money.
People say that to protect themselves, they might become “insurance poor”, buying life insurance, disability income insurance, critical care insurance, cancer insurance, and long term care insurance. Add to that, saving for retirement by putting good money away that is subject to taxes when you need it.
I am happy to tell you that there is now a solution. You can buy one insurance product that will give you blanket protection, multitask, if you will. And the great news is that it is affordable. It is Indexed Universal Life Insurance with Living Benefits. Most insurance agents can not offer it. I can help you protect your family’s financial security today.

Caution – Old Universal Life Policies

Being an insurance agent, I try to help people, not scare them. However, sometimes we have to face some unpleasant realities. Most evident is that each and every one of us will die at some point. That is why we buy life insurance to financially protect those we love. Another reality is that maybe even if we bought life insurance at one point, that policy may be failing to do what we wanted it to do. This is especially true of Universal Life policies that were purchased in the 1980’s. Many reputable insurance companies sold policies to consumers who may have been mislead (or did not fully understand how UL policies worked.) These policies were sold as permanent policies, (not term). They may have been misrepresented as policies with “vanishing premiums” or “wealth generating”. These are interest dependent policies and provide a death benefit only as long as there is cash value in the policy. Interest rates have dropped significantly from those of the 1980’s, yet the internal cost of insurance goes up as the insured ages. The policy can run out of money (fail). Unfortunately, this has happened to many people and is continuing to cause much consternation to unsuspecting life insurance owners.

Your insurance company is required to send you an annual report on your policy. They are keeping you informed. But what I see in the “real world”, is that the majority of people do not read the statements, and even if they do, they do not fully comprehend them. This can lead to a lot of heartache. Please, do yourself and your loved ones a favor. Call me for a no obligation consultation about your policies. I will be happy to review them and try to help.

 

Life Insurance

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This product is only for those individuals who love someone.   Whether death occurs prematurely or later in life, those left behind will have financial challenges.  You can protect your loved ones from that chaos.  In addition, a life policy is a great deal.  You pay pennies on the dollar for financial protection for your loved ones.  If your policy accrues interest, it is not taxed and you can borrow from it. The death benefit creates an instant estate, again tax free.  Essentially there are two types of life insurance; term and permanent.  They are called by a variety of other names and each fulfills a different need.  Paula can help you evaluate your individual needs and tailor a plan to insure your family’s future.

There are many factors that determine the premiums (cost) of a policy.  The process of determining your specific risk is called underwriting.  The insurance company takes your age, gender, health, build, smoking status and more, plus how much coverage you want, into consideration to determine your exact rate.  However, Paula can give you good estimate by just asking her.  The insurance companies pay her a commission, so there is no cost, obligation or pressure to consult with her.

Paula represents many reputable insurance companies including:

  • Genworth Life/First Colony
  • Prudential
  • AIG
  • American General
  • West Coast Life
  • Met Life
  • Mutual of Omaha
  • Monumental Life
  • Royal Neighbors of America

Final Expense Insurance

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Final Expense Insurance is another name for life insurance.  It is designed to pay the expenses of a funeral and burial or cremation and to pay off some final bills of the deceased.  Usually, these policies are purchased with a payout of $1,000 to up to $30,000.  They are ideal for those people who are older or not in such great health.  In general, most anyone who applies can get the policy because there are fewer or no health questions taken into consideration by the insurance company. Though not all policies are equal!  The policy premiums can vary extensively as can the waiting period before it pays out.  I can help you find the best plan for you from the following companies who specialize in this type of insurance.

  • Monumental Life
  • Royal Neighbors of America
  • Motorist’s Life
  • United American