Term Life
Simply put, Term Life Insurance is the most affordable way to provide a large death benefit at the lowest premium. We shop through multiple carriers to find the best rates available. I correlate these policies to renting a home.
Term life insurance guarantees a death benefit and premium for the length of the term, typically 10, 15, 20, 25, 30 & 40 years. Level Term is the best value of the policies.
There are a few types of term policies:
- Level Term
- Renewable Term
- Convertible Term
- Living Benefit Term
- Accidental Death (see Return of Premium section below)
- Decreasing Term
- Return of Premium (see section below)
Term life insurance is like renting a home or an apartment. When the term is up, you walk away. Before your term expires, please inquire about life settlements menitoned below.
Permanent Life
Under the permanent life insurance umbrella lies a variety of different products, most notably Whole and Universal life. These products typically carry a cash value if funded correctly that can be borrowed against or used for certain life events. I correlate these policies to owning a home.
An index universal life policy will provide a slow, steady, simple & secure financial situation that 85% of the top CEOs in America utilize. Only now, they are made affordable for everyone. If illustrated correctly, they can be utilized by all walks of life, not just the rich. It could make an impact on your family for generations.
Permanent insurance is like owning a home. It builds equity and guarantees a death benefit when you pass away. For many, it provides a rewarding tax free income in retirement.
Final Expense/Burial
Final Expense/Burial
These are expensive Whole Life insurance products and should be reviewed carefully. If you get a quote and would like an agent that is not a fan of these polices to review it, you're in the right spot. These policies could make sense, but do the math and make an educated decision. I refer to these policies as the "Pay Day Loans" of Life Insurance. Again, certain situations may warrant the need.
For example, It's possible that you may only qualify for a Guaranteed Issue Final Expense policy. In that case, it could be a viable option for you. Make sure you understand the wording in these policies before signing the application. I have a lot more detailed information on the various policies available and how they pay in this blog.
Living Benefits
Final Expense/Burial
Life insurance you don't have to die in order to use. These benefits are included or can be added to many life policies that provide Critical, Chronic and Terminal illness riders built into the policy.
Terminal Illness is provided with most policies, so this portion of living benefits is not unique. It allows you to withdrawal a percentage of your death benefit if you receive the unfortunate news that you have 6 months or less to live.
Chronic Illness is typically defined by not being able to perform 2 of the 6 activities of daily living. (Bathing, Dressing, Continence, Transferring, Toileting & Eating). In this event, a portion of your death benefit can be used to pay for this long-term care.
Critical Illness is a life altering event such as heart attack, stroke or cancer. Again, these plans will help pay for the out-of-pocket costs associated with one of these devastating events.
Living benefits helped Dave provide for his family and get healthy without the financial stresses. If you want a quote on Living Benefits, please fill out this form.
Return of Premium
I have two types of these plans. Term life mentioned above and accidental death life insurance policies. If you want your premium paid back upon the term expiration, this is the way to go.
Term Life:
You can apply for the same term life products, but get a full refund at the end of the term. If you buy a 20 year term policy and it comes to an end. You will get all the premiums you paid back, minus potentiol annual policy fees. You do get the majority ot the premium back.
Accidental Death:
These polices cover accidental death only. They have no underwiting. While you don't have to get a return of premium policy, it makes sense to get your money back on these policies. These policies are excellent if you own a motorcycle like I do. If you would like more details on this policy, watch the video below and reach out via the Contact form.
Why Return of Premium? Well, most people don't like buying life insurance because we think we're invinsible. In addition, only about 2% of term life pays a benefit, so most are correct. This is a way to get the majority of your premium back. At this time, you could plan your estate and buy a plot with the money saved.
Life Settlements
Have you ever heard of a Life Settlement? If you have a term life insurance policy expiring and you no longer want or can't afford the permanent conversion, this could be a great option for you. You could potentially get all the premium you paid back and then some.
Case Study:
A male, 63, with minimal health issues, had a $1,000,000 term policy that was coming to the end of the conversion period. He no longer wanted the coverage as he could not afford the conversion premiums. We got him an offer of $62,500, net to him – on a term policy with no cash value!