Category: Useful Tips & Information

Why You Should Have An Income Annuity In Your IRA.
The purpose of an IRA is to create future, guaranteed income in retirement. Investing your IRA assets into an income annuity creates the most guaranteed lifetime income, WITHOUT PRINCIPAL RISK.

IRA assets are being transferred from risky equities to guaranteed income annuities, in record numbers. These annuities are contracts that guarantee the principal will never be lost in down markets and they guarantee income that is payable for life.

Most of the people we speak with are more interested in being invested in the right strategy that guarantees maximum future income without risking principal. Billions of dollars every year are being moved out of brokerage firms and into annuity contracts because a diversified portfolio of equities leaves your retirement assets exposed to risk. As a result, these brokerage and wealth management firms respond with aggressive campaigns designed to discredit annuities. One brokerage firm, Ken Fisher, rails against annuities as their main marketing campaign.

Income Annuities Are Right For IRA Assets.

You are required to take annual distributions from your IRA at age 72. These income payments are pre-determined by IRS guidelines, known as Required Minimum Distributions, and the IRS does not require that your distributions must be payable for life. That responsibility falls on the IRA owner. Even though most people WANT guaranteed lifetime income from their IRA, most are not invested for that outcome. Most people have their IRA assets invested in a high percentage of equities.

A simple comparison tells the story.

Assume that two 65 year olds have identical IRAs, currently worth $500,000. The primary goal at retirement is to provide guaranteed income for life. At 72, they must begin taking income payments (RMDs). The two IRAs are identical except for how the $500,000 is invested in each.
- Traditional IRA #1 is invested in diversified securities.
- IRA #2 is invested in a guaranteed, income annuity that will pay income FOR LIFE. It can NEVER LOSE PRINCIPAL and the INCOME is contractually guaranteed. It will share in market gains when the markets are up.
ANNUITY + IRA = PEANUT BUTTER & CHOCOLATE

The IRA with the income annuity is better because it provides the HIGHEST GUARANTEED PAYMENTS FOR LIFE, without assuming any risk. The IRA with diversified securities can lose principal at any time. Losses are devastating in retirement considering that there is no future income to offset them.

If you agree that important goals in retirement are to preserve principal and make sure you don’t outlive your money, then Few things create guaranteed lifetime income like an annuity. Some critics say the tax deferred status of an annuity is wasted inside an IRA but this is not so. It is a classic red-herring argument designed to confuse people. The IRA’s primary objective is to create maximum retirement income for retirement and the indexed annuity does exactly that.

If you are unfamiliar with how these special annuities strengthen your IRA distributions, I offer a complimentary discussion to help give you a better understanding of these vehicles.

Economists and professors from Harvard, Wharton, Duke and Stanford all agree about the undisputed advantages and benefits of indexed annuities.

Says Michael Kitces, investment planning expert: “Given these changes, it is perhaps time to abolish the ‘annuities should never go into an IRA’ rule and recognize that it has become more a myth and remnant of old than proper advice in today’s environment.”

Please contact me at 561-771-4647. Complete the contact form on this page or anywhere on the site to schedule a complementary discussion. For a list of Tribune articles I have written, click this link.

income annuities in your ira.
March 2, 2021

Are Low Interest Rates Stopping You From Getting Competitive Interest?

Millions of Americans are frustrated by record low interest rates and how they are affecting your savings and your retirement plan. Whether you have money in CDs, money market accounts or government bonds, there are better options. Instead of accepting 0%, we can help you can get at much higher guaranteed interest, without giving up safety or liquidity.

Get Better Returns During This Prolonged Period of Low Interest Rates.

Why not consider a 200 year old option where everything is guaranteed and currently offers fixed rate near 2.5%? It is short term, liquid and the income is not taxable until it is withdrawn, unlike other investments which tax the minimal growth each year. This option gives you a real chance of getting tax deferred, compounding interest.

With the Federal Reserve signaling that benchmark, short term interest rates would likely be held near zero until 2023, many may be reminded of the period following the last recession, which lasted for seven years. The Wall Street Journal, September, 2020

Zero percent rates are punishing savers. CNBC predicted that rates will not rise until 2025! At this point, we have to believe the Fed about rates. Some banks have announced they will soon be at NEGATIVE RATES.

We help consumers locate better solutions. For example, indexed annuities are liquid and currently paying GUARANTEED ANNUAL RATE near 2.5%. The advantages are:

100% guaranteed.
More than 2.5% is possible by allocating to the indexed funds, without taking any principal risk. The index rates are NEVER less than 0%.
All gains are kept and can never be lost.
No principal risk; no market risk.
Minimal surrender charges; small market value adjustment on early year surrender can be positive, or negative.
Tax deferred.
Protected by a contract from highly rated insurance companies.

Financial Engineering: Instead of using indexed annuities with built-in commissions, we utilize fee based alternatives to boost the returns and the early year liquidity. This is state-of-the-art value creation, leading to better returns. Alternatives like these minimize the individual risks and maximize safe, upside potential.

Annuity Alternative	Money Market	Savings Account	CDs	Bonds Bond Fund
~2.5%	Less than .02%	Less than .02%	Less than .02%	Variable
Liquid	Liquid	Liquid	Less Liquid	Less Liquid
Tax Deferred	Taxable	Taxable	Taxable	Depends
Guaranteed	Guaranteed	Guaranteed	Guaranteed	Not Guaranteed
Up to 5% with no risk.	Current rate Less than .02	Current rate Less than .02	Depends on Duration	Depends on Duration

What makes this annuity alternative so much better?

Individual investors can not match the investment skill or the investing scale of insurance companies. With the brightest investment people working 24/7 to grow and protect your money, insurance companies are investing billion dollar portfolios. As individual investors with far less to invest, we cannot commit the necessary attention to safeguard our own investments in the same way. It’s win/win money management because you share in the upside when markets are up, without taking any principal risk.

How Much Interest Can I earn? Many people choose the fixed account rate that is currently paying 2.45%. Others choose one of the indexes linked to the S&P which puts you in position to earn as much as 5%. And others choose a blended approach that creates some guaranteed income plus potential for double the guaranteed rate. Higher interest rates are achieved without any principal risk. Net of fees, the returns are far superior to savings accounts, money markets and fixed income products. Furthermore, taxes are deferred and principal is creditor protected.

We are facing the real probability of negative savings rates. Imagine paying a bank to hold your money? It doesn’t seem possible but neither did zero percent interest rates seem possible a few years ago.

If you find better rates in the future, you can liquidate without surrender penalties. However, higher rates elsewhere will likely mean that insurance companies are also increasing their fixed rates in order to remain competitive.

Let us help you plan for this low yield crisis. Learn about these successful strategies by taking a complimentary phone call or requesting a customized quote. For more information about short term solutions, click here:

Start the ball rolling by simply filling out the contact form on this page or any page of our website. You can reach us at 561-771-4647 or 561-869-4500.

How long will interest rates remain low, click here:

September 29, 2020

Plan to Succeed.

As an advisor to families, individuals and businesses for many years, I’ve been inspired by the following tips, all of which have stood the test of time.

1. Shakespeare said “the world’s a stage”. As such, it pays to have a plan, work from a script. But, things happen and when they do, it is okay to go off script and improvise.

It is always good to set goals and work a plan for achieving them. In your plan, try to remember that so much is not in our control. Things like prosperity, wealth and poverty are not always correlated to the choices we make. They may be influenced by our choices, but sometimes they’re not. Try not to underestimate the role of chance in life as it applies to you, and others. Realizing it may help you go off script at important times. The ability to handle the unexpected without melting down is a good skill to possess.

While the rewards of hard work often do lead to success, what about the fact that not all success is a result of hard work? What about the fact that not all poverty and failure is due to laziness or other negative labels we ascribe to ourselves, and others? Be kind.

I can tell you with great certainty that a career or a job with flexible hours and a short commute never gets old.

2. A great benefit of having money is gaining the ability to control time and make the most of it.

The ability to do what you want, when you want and with whom you want, creates a lasting sense of happiness that no amount of “stuff” will ever outweigh.

Being able to retire on your schedule is one of life’s great luxuries, for some. We tend to work towards a previous ideal that retirement is a virtue in and of itself. For some, it may be. Is a typical retirement a healthy decision for everyone? Perhaps it is not. Many people love what they do and wouldn’t consider retiring at an arbitrary, predetermined point in life.

3. It’s easy to spoil our children, easier with grandchildren. Teach them well.

Working with many families throughout my career, I’ve been blessed to see a few that seem to effortlessly produce children with fantastic values. It’s not all luck and genes, that’s for sure. They’ve taught their children well and they tend to make the tough choices when it’s necessary to make them. For example, it is difficult to fully grasp the value of a dollar without earning your own and experiencing its scarcity.

Teaching children they can’t have everything seems to be the best way for them to learn and understand the difference between “I need” and “I want“. This, in turn, teaches them about budgeting, saving, and knowing the value of what they have and what they want. Delayed gratification is painful to experience and equally as painful to teach.

Another wonderful lesson for young children is learning to appreciate frugality — within reason. It is an essential life skill that pays off during life’s inevitable ups and downs.

4. Financial success doesn’t always come from big moves.

Managing money successfully is a long game and it requires long term discipline and strategy. You don’t have to hit home runs all the time to end up ahead – not screwing up too often is just as important in reaching your long term investment goals. Like I tell my clients, “you must avoid losses in retirement because you can’t replenish”. Avoiding catastrophic investment mistakes will keep you on track.

5. Live within your means.

The ability to live within your means is powerful financial discipline. You will have less stress when other things go south, like income or investment returns. How much you make doesn’t determine how much you have, and how much you have doesn’t determine how much you need.

6. A changing and open mind is healthy; be flexible.

During your lifetime, it’s okay to acknowledge that your beliefs and goals will evolve. Thinking about your first college major is a good example of how our goals change during our lifetime. Allowing yourself to change your mind is a superpower, when you’re young and when you’re older. Ronald Reagan was a democrat when he was young.

7. Everything has a price.

The price of a career is time. The time spent to develop a career usually comes from your time with friends, family and other relationships. The price of inactivity is poor health later in life. The price of spoiling kids is setting them up to live a disappointing and sheltered life.

Everything worthwhile has a price and the payment often comes due much later. Most things we want are worth it, but we should know their price and never ignore their true costs. Once we accept the true cost of things, we begin to view relationships, autonomy and creativity with greater value.

8. Money is not the greatest measure of success.

Money doesn’t provide the things you want most. No amount of money can bring your perfect spouse, a good character, contentment and empathy towards others. In fact, in retirement, the amount of guaranteed lifetime income is the true measure of success and security, not the amount of one’s assets. ROI in retirement means Reliability of Income.

9. Don’t blindly follow advice without considering the source (unless it’s mine).

Many of life’s lessons are things we look back and say we wish we’d learned earlier in life. Never take anyone’s advice without reflecting upon your own values, goals and life experiences. Try to consider as many sides of an issue as you can.

10. The Concept of tzedakah, or being charitable.

The Hebrew word tzedakah means charitable and “righteousness”. Being charitable creates a sense of righteousness from within. When we are acting charitably, we should gain self-esteem. I can not imagine a scenario in which the world does not benefit from acts of tzedakah. Charity is manifested in endless ways. For some, using their wealth is how they wish to be charitable. For others, money has nothing to do with money. Instead, some give their time.

Please call me at 561-869-4500 or email me, Ted Bernstein, about a complimentary consultation.

June 30, 2020
Best Life Insurance Policy – All Done Online, No Medical Exam, No Blood. One Hour Approval.

Are the premiums higher if you buy life insurance without going through medical underwriting such as bloodwork or a medical examination? The answer is no. You can obtain the best life insurance policy online without a visit from a medical professional. That means the best rates and the best policies are available online. Accelerated underwriting does not mean expensive, guaranteed issue. The insurance company still underwrites each individual policy but in a completely new way. Some life insurance companies are leading the way by using information and data they believe is better.

Although this may be counter-intuitive, you do not pay more. Buying life insurance online is not “buying direct” from the insurance company either. Life insurance companies do not sell policies direct to consumers. They sell only through licensed insurance agents, without exception. Some insurance companies tried going direct, without success. Life insurance is sold, not bought.

Behind every online site selling life insurance, there is a licensed life insurance agent. For every sale, the insurance company pays a commission to the licensed agent named in your application. You may not realize a life insurance agent is writing the policy, but in fact, it is required by law. Some of these online agencies are hoping consumers believe there is an advantage in going “direct” and cutting out agents. It helps to know that online sites are no different than any other insurance agents or agencies.

Why It Matters.

Now that you know there is an agent getting paid a reasonable, non-negotiable commission, you want to always use the help and guidance built into the pricing of the policy. The insurance companies want educated consumers. Some life insurance buyers may incorrectly assume that buying online is “going direct”.

State of the Art.

In conclusion, you can now purchase the best life insurance policy online and get it done WITHOUT A MEDICAL EXAM, without lab tests (non blood or urine) or face-to-face visits, if that is what you prefer. The maximum is $5,000,000 per person and we have companies that write up to age 65 without medical evidence. The whole process can be done within an hour.

Contact us for a quote to apply and buy. Reach Ted Bernstein at 561-771-4647 or by email. We are close. People often search for “life insurance near me” or “life insurance agent near me” and we are one of the results. Online, we’re all close for business purposes. It truly is one of the great benefits of the Internet. Check out our 5 Star rating on Google or on our testimonial page.

January 27, 2020
Best Options Before a Term Policy Expires.
The two most important considerations to focus on before a term policy expires are your current health and the policy’s conversion option. Every option you will face involves these considerations. Whether you keep, convert or sell the policy, current health and convertibility will be factors. The best time to deal with the end of a term policy is well before its end, allowing for enough time to consider a plan based on the options available in the contract. This way, you retain control over keeping the coverage or shopping for a new policy.

Long duration, guaranteed term insurance is a relatively new product in the life insurance industry. It started getting popular about 25 years ago. Low premiums have enticed many insurance buyers to overlook some disadvantages. For example, let’s assume a 35 year old person bought a 20 year term policy, 20 years ago. Twenty years later, around age 55, the policy is expiring. What we find is that a very large percentage of people in this boat want to extend the coverage, but they cannot. There are many reasons for this which I cover extensively on this site.

Before a policy expires, you want to be aware of the following:
1. If the policy served its purpose, you can walk away, assuming there is no secondary market value. If you are over age 70 with some significant health issues, you might want to explore the secondary market to determine its value to a settlement investor.
2. Another option is to convert your policy to a permanent one from the company that issued the original term coverage, after making sure the conversion privilege is still in effect and available to you. DO NOT ASSUME IT WILL BE. The conversion option is the single most misunderstood provision in term insurance. Most policies limit the time you can convert. Once it passes, you are out of luck and you will then need to prove evidence of insurability to the insurance company. They will want new and updated health information, new blood and other labs, at the very least. They will re-underwrite you again as if you’re a new policyholder. If, however, you are ABLE to convert WITHOUT evidence, you still may NOT want to exercise this option. It will depend on your health.
3. Another possibility is to buy another term policy if you are insurable. If you are, shop the market with an insurance professional who can find you the most competitive policy at that time. No matter what you do, you are paying for the professional to assist you. If you buy a policy and use no help from anyone, the insurance company will pay the full commission to the designated agent assigned to your purchase. There is no way around this. Like the car business, you cannot call Ford and bypass the dealerships. My point is to take advantage of what you are paying for and find an agent you are comfortable working with.
4. Or, you can buy a permanent policy. Beforehand, shop the market with an insurance professional who can maximize the value of your purchase, especially with a permanent policy. See point #3. Be selective and try to find a professional with experience, an impeccable reputation and solid referrals.
5. Another option is to extend the coverage by paying the “renewal” premium offered by most policies. The rate will be much higher than the rate you’ve been paying. This option usually means the insured is in bad health and has no other options.
The most important thing I can offer as a takeaway is to review the policy every couple of years and talk through these options to be mindful of when the conversion date expires. Planning around that date will prove to be beneficial in the long and short run.

Give us a call at 561-869-4500 or email me at TB@LifeCyclePlanners to get started. I offer a complementary conversation about anything on your mind concerning your insurance coverage or succession plan.
January 21, 2020
New Alternative Creates Customized Payouts of Life Insurance Proceeds to Protect Beneficiaries.

For the past 200 years, life insurance companies have only offered a lump-sum payout of policy proceeds to beneficiaries. For many, this is not ideal considering these income tax proceeds are squandered in less than 5 years. Ask any life insurance buyer if they intend for the proceeds to be spent in less than 5 years.
Life insurance buyers want choices. In fact, a high percentage of life insurance owners do not want a lump-sum payout. Instead, they want a policy that gives them the option to create a customized and guaranteed income stream for their beneficiaries that cannot be mismanaged. The Installment Option instructs the insurance company to make guaranteed, pre-determined income payments over time. These payments are selected when the policy is issued by the policy owner. The best life insurance policies today give policy owners flexibility and options; the more, the better.

The Installment Payout Option allows policy owners to create a customized schedule to fit their family needs and guarantee a protected income stream for their beneficiaries, up to 10, 20 or even 30 years.
 Premiums payments – up to 50% less for guaranteed results or the
total benefit is increased as much as 50% for the same premium.
 The annual payments are pre-determined and guaranteed,
regardless of economic conditions or other variables.
 Ability to customize the death benefit payments to meet individual
planning objectives.

Proceeds are paid according to a pre-determined schedule, selected by the policy owner at the time of purchase. In the past, a lump-sum payment was the only option available. The Installment Option eases concerns about lump-sum payments being mismanaged.

Protect Proceeds For Beneficiaries

What is the Installment Life Payout Option?
Rather than your beneficiary receiving a lump-sum payment at the time of
death, the Installment Payout Option gives you the power and control to choose guaranteed, pre-determined installment payments when the policy is purchased.
Is the Installment Option Less Expensive ? Can I Buy More Life Insurance With the Same Premium Payments?
Yes, this option is less expensive. The longer the deferral period, the lower the premium payments will be. Premiums can be as much as 40% less on an annual basis.

Is the Installment Option Better Than a Lump-Sum Option?
Neither option is “better” than the other. An increasing number of life
insurance buyers are concerned about the risks of leaving a lump-sum death benefit to their beneficiaries. For them, the Installment Option may be best. Life insurance owned for estate tax planning is a good example of when a lump-sum option may be a more appropriate alternative.
How is the Deferral Schedule Determined?
We encourage every life insurance buyer to meet with a life insurance professional to consider these options, and others. Your income, debt levels,
other assets, fixed and variable expenses, education, retirement assets and inflation are some of the elements in the calculation.
Can I Change the Payout Option from Installment to Lump-Sum?
Some insurance companies allow for this. Unlike the lump-sum option that is very limited from a planning perspective, the Installment Payout Option allows for customization by each policyholder.
Can I choose a Blend of Lump-Sum and the Installment Option?
Yes. Most people appreciate the ability to customize their life insurance
policy by combining a lump-sum payment with installment payments over time.
Can I Upgrade My Existing Insurance to the Installment Option?
Yes. By doing so, you may be able to lower the premium payments or
increase the death benefit for the same premium you pay now.
Can a Beneficiary Make Changes to the Installment Schedule?
No. However, the installment payments are an asset that can be sold at a
discount. We recommend a trust be considered as the policy owner, with an
informed trustee to ensure the insured’s intent is honored.
What if My Health Has Changed Since Last Purchasing Life Insurance?
If you have had a material change in health, be cautious about giving up
any existing coverage without a careful analysis. Consult with us to help evaluate your options. By choosing the Installment Payout Option, you may be able to neutralize the impact of a higher premiums.
What Insurance Companies Underwrite the Installment Payout Option?
The Installment Option is available from several of the most highly rated life insurance companies in the United States.

Please call me at 561-869-4500 or email me, Ted Bernstein, about a complimentary review of your existing policies.

December 17, 2019
The Best Life Insurance is No Medical Exam, No Blood, No Wait. In One Phone Call Get Covered Up To $5Million.
What do Barbara Eden and Elizabeth Montgomery have in common with buying life insurance today?

Magic!

As fast as they blink and twitch is all the time it takes to buy the best life insurance available in the market today. Apply and Buy is done without a medical exam, without lab tests or without the traditional underwriting hassle. Everything is done online with the guidance of experienced professionals. Whole life insurance, term life insurance, permanent life insurance are all available, up to $5,000,000. For qualified prospects, no traditional underwriting means:
1. No bloodwork, no needles. No other body fluids necessary.
2. No visit from the doctor.
3. For approved candidates, issued and paid in an hour.
The Need For Speed.

Consumers today expect everything done quickly. Many people do not review or upgrade their existing life insurance coverage because they dislike the process and it takes too long. But speed alone is not all it takes to make a great life insurance experience. Considering it is among our most important assets, quality is equally important. Without exception, the insurance companies underwriting these programs are market leaders.

Welcome to the future where you can buy the most competitive life insurance coverage in a single phone call. By collecting information such as prescription history, DMV reports and typical credit and consumer information, you will get a policy in a fraction of the time and none of the aggravation.*

Everything is done online. In one sixty minute phone call, you can apply and buy up to $5,000,000 of coverage. Everyone under age 65 is a candidate. Therefore, if you have been putting off the decision to review or upgrade your coverage, now is the perfect time to speak us.

What Type of Policies Are Eligible for Accelerated Underwriting?

Term and permanent policies are eligible, including whole life. There is no difference between these products and the ones available through traditional underwriting, which is the biggest concern people state for not upgrading their existing life insurance coverage. People realize that policies are better than ever before but at least 50% report taking no action. Enhancements like living benefits, vitality pricing, lifestyle credits and lower premiums are not enough to overcome the hassle of underwriting.
The typical concerns stated by most people include:
- the exam process.
- aversions to needles for blood.
- disclosing height and weight.
- fasting.
What About Living Benefits?

Living Benefits are available with accelerated underwriting. The value of Living Benefits is that they allow you to draw against the face amount of the policy if you have a qualifying health emergency. Every life insurance policy should include Living Benefits, without exception, since there is no additional cost.

Please contact me at 561-869-4500 or complete the contact form on this page to schedule a complementary discussion.

* Applicants may not qualify. Insurance companies retain the right to ask for additional medical information based on the initial application.
November 26, 2019
What Happens When A Term Life Insurance Policy Is Ending?
I am often contacted by owners of term life insurance policies when the policy is nearing the end of its guaranteed term period. Whether that is 15 or 20 years from when it was issued, people want information about their options at this very important time. Like many things involving insurance, reaching out for a life insurance professional is your best bet. Understanding the options will provide comfort and clarity. Because nothing about life insurance is one size fits all, there are no simple answers here. The end of a term insurance policy brings the need for life insurance into focus again. Typically, healthy people have good options to buy new insurance. An expiring term insurance policy should be treated like the purchase of new insurance. How much coverage is needed, for how long and what type are important questions to consider.

Deciding how long a life insurance policy should last is one of the toughest decisions we face when buying life insurance. The duration is a huge factor in determining the policy’s premium. The longer you want a policy to last, the higher the premiums will be. In contrast, the sooner you can lock in a permanent insurance rate, the less it will be over time. For those who prefer to minimize future costs, permanent insurance is more economical. Permanent life insurance has a much lower net cost than term.

Knowing that permanent life insurance has a much lower net cost than term insurance, why do people stay with term longer than they should?

In a perfect world, everyone wants lifetime coverage for the cost of term insurance. But, when we are young, term is easy on our budgets and life expectancy seems like a hundred years away. Younger insurance buyers are often led to believe they won’t need insurance in the future because:
1. their kids will be grown
2. other assets will have increased, and
3. their spouse won’t need liquidity when the kids are gone.
In reality, we get older quickly and our feelings about how long we want life insurance change – ask anyone over 50. In our 30’s and 40’s, we might think we only need coverage until retirement or when the kids are self-sufficient. In situations of divorce, everything changes. Many people choose term insurance hoping to replace it with a better policy when cash flow improves, before the term policy ends. Unfortunately, that is not what happens. Data strongly suggests that life insurance reviews are easy to kick down the road. Fifteen or twenty years passes quickly, making the flaws of term insurance painfully clear.

The number one problem with term insurance is that it lapses before it is needed most. After the initial term period, the much higher renewal premiums may be unaffordable and they catch people surprised and unprepared. A 55 year old may now have health issues. If health has changed, the problems begin to compound. Older age and less healthy combines to make term coverage far less desirable, making this the first time people realize that term insurance may have cost less when they were younger, but it is not better value. It simply cost less in our low risk years.

What to do with current, inforce policies?

Life insurance buyers can benefit from innovation, technology and science. However, it is likely that your current policies are not receiving these enhancements. For example, new policies allow people to take an accelerated benefit against the face amount of the policy, at no cost, when they have a health emergency. In the proper policy, a $2,000,000 policyholder is eligible to take more than a million dollar advance from the face amount, under the illness rider. There may be zero cash value in the policy but it remains eligible for an advance because these advances come from the face value, not the cash value.

In order to take advantage of these innovations, life insurance owners only have to let an experienced agent do a market review.

Another innovation, apply and buy, allows people to get up to $5,000,000 of coverage approved and issued online, in one meeting, without submitting any doctor records, blood, urine, or taking a medical exam. The rates for expedited policies are exactly the same as they are for people who are underwritten traditionally. There is no additional cost for this remarkable convenience. Whether it is term, whole life, universal life or term to 100, the coverage can be applied for and issued in less than an hour.

Innovations in cash value policies are equally remarkable. In the right indexed universal life policy, the insurance company GUARANTEES there will never be market losses, only gains. Indexing strategies are transforming the uses of life insurance.

For people older than 70 with expiring term insurance policies, they should consider selling the policy in the secondary market rather than just letting it lapse. The policy may have no value, but it is possible. A few months before the policy lapses, getting a valuation makes sense.

Give us a call at 561-771-4647 or email TB@LifeCyclePlanners to get started. I offer a complementary phone call about your current life insurance concerns.
October 29, 2019
Whole Life Insurance.
Is Whole Life Insurance Right For You?

Whole life insurance is specifically targeted to consumers seeking high guarantees, tax deferred growth, competitive rates of return and and THE LOWEST NET COST LIFE INSURANCE COVERAGE. Whole life is often recommended for high net worth life insurance buyers who appreciate competitive internal rates of return.

Let’s consider some of the more common questions about Whole Life:
- Is whole life insurance right for you?
- Does Whole Life cost more than other types of coverage?
- Why does net cost matter so much?
- Which company offers the best Whole Life?
Is Whole Life right for you?
The best candidates for Whole Life are life insurance buyers who want and need guaranteed coverage for life and they can handle higher premium payments in the early years. The net cost of Whole Life is far superior to term insurance, challenging the misleading information that suggest term is cheaper. Whole Life insurance is one form of permanent coverage offering predictable outcomes and guaranteed results. It is not the right policy for short term needs or for people with limited budgets. Whole Life policies create cash value from your premium payments. The cash value growth is measured on two parallel tracks. One is on the guaranteed track and the other fluctuates through a variable dividend rate.

Does whole life cost more than other types of coverage? Yes and no. The premiums for whole life, in the early years, are higher than other types of insurance, such as term insurance or universal life. However, it is not inherently more “expensive” than other types of insurance. The higher cash outlays in the early years is what makes it appear to be more expensive. Over your lifetime, the net cost of whole life is much less than term insurance. The upside of these higher premiums in the early years is LOWER PREMIUMS or NO PREMIUMS later in life.

The net cost is the total premiums paid minus the cash value. Since whole life builds cash value within the policy, it stays inforce for life. Whole Life policyholders have coverage that never expires if premiums are paid as planned. Their premiums never increase and their policies are often flush with cash that can be used in a variety of ways.

The monthly payment for a 5-year car lease requires more cash flow than a monthly payment for a 3-year lease assuming you are leasing the exact same car. Does that make the car more expensive for a 5 year lease? Of course not. The same logic applies with permanent life insurance. While cars depreciate, insurance policies appreciate. To say whole life is more expensive insurance by definition may be misleading and simply not accurate. Pundits like Dave Ramsey and Suze Orman have rather sophomoric ideas about permanent insurance. They do not have professional designations or practical insurance experience, in my opinion.

Cost is one critical factor to consider when selecting a life insurance plan that best suits your individual needs. You can compare the approximate net cost of different policies by simply measuring the total premiums minus the total cash accumulation at different intervals.

Whole Life vs Term Insurance. Here are some advantages:
- Policy Duration. With whole life, you are insured for life. As long as your premiums are paid, you’ll be covered, whether you’re fifty or ninety. Term life ends at a certain age leaving you without vulnerable if you need or want coverage to last longer. We tend to underestimate our desire for lifetime coverage when we are younger.
- Whole Life accumulates tax deferred cash value. Cash value grows tax-deferred, like an IRA. You can borrow or use the cash on a tax free, low cost basis.
- Future premiums can be paid from the cash value.
- Flexibility. The cash value is protected from market fluctuations. The interest is tax-deferred and there are no limitations on contributions. You will likely earn dividends on the cash value as discussed earlier.
Which Company Offers the Best Whole Life Policy? There are only a few companies remaining that are dedicated to creating and managing Whole Life products. There is competition among them and each has developed niches where they excel. The process of buying a suit is a good analogy to the process of buying a Whole Life policy. A good suit is customized or tailored to fit you perfectly. The same is true when buying a Whole Life policy. There are many factors to consider, including which company and which product you choose. No one insurance policy is going to be perfect for everyone.

By doing your research and working with experienced professionals that represent the entire market, you will come close to finding the best policy to suit your needs at this point in time.

Please contact me at 561-869-4500 or complete the contact form on this site to schedule a complementary discussion or look me up on https://www.advisorycloud.com/profile/Ted-Bernstein
September 6, 2019
How Long Should Your Life Insurance Policy Last? What You Need To Know.

Ninety seven (97) percent of term policies lapse without paying a claim.

Determining the duration of coverage may be the most difficult decision you face concerning your life insurance coverage. Until you are certain about how long you WANT or NEED your policy to last, it is difficult to determine whether you should own a term policy or a permanent policy. The longer you want your policy to last, the higher its premium will be. But the sooner you lock in a permanent policy, the less it will be. For those who prefer to minimize and control their costs in the future, figuring out the duration issue as early as you can is wise. Permanent life insurance has a much lower net cost than term.

Since the net cost of permanent coverage is much lower, why do people stay with term longer than they should?

In a perfect world, we’d like guaranteed coverage to last for life at the cost of term insurance. If it weren’t for its higher premiums, everyone would prefer permanent insurance. As it is impossible to predict the future, maximum duration flexibility is an important feature to have in a policy. As we get older, our feelings about life insurance change. In our 30’s and 40’s, we may feel we only need coverage until retirement or when our kids are self-sufficient. Since term policies require less premium, we choose it hoping to replace it with a better policy before it expires. Unfortunately, that is not what happens. The low term premiums are enticing and the insurance industry is failing to communicate the risks of carrying term too long. This has led to a crisis defined by huge numbers of relatively young people being unable to secure a policy after their initial 20 or 30 year term policy expires.

The biggest problem with term insurance is that it doesn’t last long enough. Consider that 97% of term policies will lapse before paying a claim. The renewal premiums become unaffordable and catch people off guard and unprepared for higher premiums. If their health has changed, the problems begin to multiply. Term insurance is not better value. It’s simply less costly in the low risk years.

As we get older, we want life insurance to last longer. Waiting to tackle the duration issue can have sobering consequences.

Innovation is completely changing the insurance industry but existing coverage must be upgraded as often as possible. Did you know that you can take a $2,000,000 advance against the right policy at no cost. If you have a health emergency, it could be a lifesaver.

And, you can now get a $5,000,000 policy issued in one phone call, without a medical exam and pay the same rates as people who are underwritten traditionally.

Give us a call at 561-869-4500 or email TB@LifeCyclePlanners to get started.

July 17, 2019