Term Insurance Failure. Millions of people were sold a theory, not a solution. They were told they could outperform insurance companies by investing the annual difference between term insurance premiums and the higher premiums for permanent coverage. That has proven to be a costly mistake for policyholders. They didn’t invest the difference and now they’re facing expiring term coverage and much higher premiums without a “side fund” to offset them.
Tax Deductible Life Insurance? Business owners get a tax deduction for a special plan funded with permanent life insurance. Contributions are tax deductible. In addition to tax deductible contributions, the cash value grows tax deferred and the proceeds and retirement distributions are tax free. Contact Ted for information. This is like peanut butter and chocolate!
ROI = Reliability of Income. ROI in retirement comes from safe and guaranteed lifetime income. Annuities and social security have proven to be the most reliable sources of income for life.
Guaranteed Income Advice
You should always, always, always know the date of the conversion deadline in your term policy. It may be the most important thing to know about your term insurance policy.
When is the best time to start planning for your retirement? https://www.quora.com/When-is-the-best-time-to-start-planning-for-your-retirement/answer/Ted-Bernstein-2
There are annuities that focus exclusively on growth until you elect to convert the contract into payments of guaranteed income for life. Read more…
Premium Financing Done Right? Should you finance life insurance?
- Only if you need or want permanent coverage?
- It’s not free life insurance, pass if that’s the appeal.
- If there is a big arbitrage between the interest rate for the loan and the return on your capital, it can be advantageous.
- How will you pay back the loan if the cash value doesn’t perform as illustrated on the insurance company projections?
- Do you have really good reasons for not paying the premium from other assets on your balance sheet? If so, it can make sense.
- Read all about Premium Financing Done Right, here:
Why shop your inforce life insurance policies? It sounds counterintuitive, I know. We tend to think that because we’re older and the premiums will be higher. Not true! Definitely shop your policies because rates are dropping and we’re living longer. Policies are much better today with advantages that older policies simply do not have. For example, policies today have accelerated benefits which allows you to take an advance against the FACE AMOUNT of the policy in a health emergency. There is no cost for this advance as it is taken from the face amount of both term and permanent policies.