Life Cycle Financial Planners, LLC

Tag: best life insurance

  • Why You Should Trade In Your Life Insurance Policy For A Better One.

    Why You Should Trade In Your Life Insurance Policy For A Better One.

    Even though you are older, it can often make sense to buy a new life insurance policy.

    We tend to think that because we are older, we are prohibited from getting a better policy. But that is not the case. If you currently own life insurance and you are healthy, there is better coverage out there. This is intended to help you acquire better coverage and the rationale for doing so.

    First, you have nothing to lose by shopping the market.

    Here is the good news:

    Life insurance is not a “one and done” acquisition. Would you shop a mortgage rate if a better one seemed possible? Would you get a better car for a better price? Most people want the benefits of technological improvements. The same applies to life insurance!

    Of course, it always depends on individual analysis and the details. I am not suggesting life insurance owners run out and blindly replace their life insurance policies. I am suggesting there is no downside to considering better coverage.

    Over the past 30 years, the terms “switching” or “replacing” became “negative terms” within the life insurance industry. They are not, by definition, negative terms.

    There was a time when unscrupulous agents churned business, but those agents are long gone and protective measures are part of the fabric of our industry. The industry does a nice job policing itself.

    I would suggest that the pendulum has swung too far. Some life insurance applications in some states include replacement paperwork with dozens of pages that are nearly impossible to complete. To be clear, I am 100% for consumer awareness and replacement guidelines that protect life insurance buyers.

    Innovation is the force behind better life insurance products.

    People with existing life insurance deserve to know that replacing, changing or switching one policy for another may be a smart thing to consider. Policyowners must become aware of this from insurance companies, agents, associations, industry pundits and advocates. It is imprudent to keep a life insurance policy without knowing if better coverage is available.

    Let me help you choose the best policy for your needs. Let’s get started.

    The process begins with a current discussion of your health. Fortunate consumers are the ones in similar or better health compared to the time they last bought a policy. There are meaningful innovations to consider.For example, accelerated benefits alone make a strong case for trading up. Accelerated benefits give policyowners the ability to take an advance against the policy. The advance comes from the face amount, not the cash value account, and it is not a loan. Many term policies now have accelerated or living benefits too.

    If your current health is similar to the last policy you bought, it is likely that you can upgrade. Buying life insurance today is a much simpler process and depending on the amount of coverage, it can all be done online, without a medical exam.

    There is no downside in taking advantage of better rates, lower premiums, more benefits and more flexibility.

    When does it make sense to keep existing coverage? When there has been a significant change in health or surrender charges apply, it may not be possible to benefit from new life insurance. Until a policy or policies have been properly reviewed, it is impossible to know. Jumbo policies should routinely be reviewed as there are several insurance companies competing for this business.

    Please contact Ted Bernstein at 561-771-4647 or use the form on this page. You can email Ted at TB@LifeCycIePlanners.com. He offers a complimentary consultation to discuss anything you wish about life insurance or annuities. Read what other clients have chosen to say about Ted. Please visit at www.facebook.com/lifecycleplanners

    https://en.wikipedia.org/wiki/Whole_life_insurance https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance

    (For all the uninsured people with families and/or businesses that are unprotected by life insurance, the first several hundred pages of google results offer advice about the benefits of owning life insurance. If you don’t own any life insurance, it may be far less expensive than you think).

  • Should You Convert Your Term Life Insurance Policy? What You Must Know.

    Should You Convert Your Term Life Insurance Policy? What You Must Know.

    If you’re in good health, you have much better options to consider before converting an inforce term insurance policy. For healthy people, converting is usually the option of last resort, but there are exceptions. First, you have to know the actual conversion deadline but more than 90% of term insurance owners do not understand the conversion options, or the deadline.

    For many reasons, most people do not convert their existing term policy to a permanent policy. The most obvious reason is that the majority of life insurance buyers are not good candidates for permanent life insurance. For them, a less expensive option might be a term policy without conversion options. Not many companies offer this option but it can be the perfect solution. However, for the people who need and want permanent coverage, it makes sense to shop for a new policy with other carriers – BEFORE CONVERTING. Most insurance companies do not expect healthy people to convert term policies. They assume only unhealthy policyholders will convert without shopping and based on that fact, converting can be a very expensive proposition.

    In a perfect world, everyone would like a permanent policy for the cost of term insurance. When we are young, term is easy on the budget and reaching age 50 seems a hundred years away. Young insurance buyers are often told:

    • They won’t need life insurance in the future.
    • Their kids will be grown and other assets will make life insurance unnecessary.
    • Their spouses won’t need protection when the kids are grown; and
    • Once they reach retirement, the need for life insurance goes away.

    For some people, those statements might be true. But for many, those statements do not apply and when they don’t, term insurance is the wrong product solution. In reality, our feelings about life insurance change as we get older – ask anyone over 50. Or ask anyone with grandchildren or anyone who has been divorced. Even if you initially opted for temporary term coverage for budget reasons, we recommend replacing it with a permanent policy. The sooner the better and well before the temporary coverage expires.

    There is a small number of life insurance companies with great term insurance products. These companies have low rates, they allow conversion in ALL YEARS and they allow the term policy to be converted to all available products.

    The decision to convert a term policy depends on your health and your current goals and objectives. If you are going to convert term insurance while you are in good health, you hopefully have the right kind of term policy. If not, the options may not be ideal, making conversion a critically important issue when buying a new policy or reviewing inforce policies. Too many term life insurance agents want you to believe that price matters more than anything else when choosing a policy. Nothing could be further from the truth. For example, accelerated benefits are invaluable and add no cost to a policy.

    We hear from people when they are shopping for new coverage or searching for information about conversion options, usually near the end of the guaranteed period. Like many financial planning issues, help from a professional is your best bet. Getting current policy information about the conversion options will provide clarity about the best possible course of action. Life insurance is not one size fits all, there are no simple answers that apply to each individual. The end of a term insurance policy is an important deadline that brings the question of life insurance coverage into focus again.

    When a term insurance policy is expiring, it should be treated just like the purchase of a new one. How much coverage is needed now and how has that changed? How long do you want the coverage to last? The issue of duration is one of the most important considerations as it determines not only the type of policy to consider, but it’s premium too.

    The longer you want coverage, the higher the premium will be and the sooner you lock in a permanent insurance rate, the less it will be over the long run. For people who prefer to control and minimize future costs, permanent insurance has a much lower net cost than term.

    If you purchased a 20 year term policy 10 years ago, in effect you only have a 10 year term policy without living benefits and the conversion deadline may be right around the corner.

    Things are changing. Life insurance buyers today are benefiting from education, innovation, technology and medical science. However, your current policies are not receiving any of these improvements. New policies offer access to accelerated benefits against the face amount of a policy, at no additional cost. Your life insurance policy is now an emergency fund in the event of a chronic illness. A $2,000,000 policy is eligible for a $1,000,000 advance from the face amount, under the illness rider. Even if there is zero cash value in the policy, it remains eligible for an advance because these special advances come from the face value, not the cash value. Ask an experienced agent to compare your existing policies against what is available in today’s market.

    To take advantage of these innovations, please contact us at 561-771-4647 or complete the contact form on this page to schedule a complementary discussion.

  • Why Do High Net Worth People Own Permanent Life Insurance?

    Why Do High Net Worth People Own Permanent Life Insurance?

    High net worth people tend to appreciate value and typically want life insurance protection for life.

    Permanent life insurance (sometimes referred to as whole life insurance) offers much better value for life insurance buyers than any type of term life insurance. The net cost of permanent life insurance is undeniably better.

    Net cost is the total premiums paid minus the total cash value. For example, if $80,000 of total premium is paid into a permanent policy over 10 years and the cash value of the policy is $80,000, there is a net cost of $0. That is not an error. It is how permanent insurance is designed. Comparatively, if $40,000 of total premiums were paid into a term policy over the same period, the net cost would be $40,000. The cost of term insurance increases as we get closer to life expectancy while a whole life premiums are level or may have been paid up in the early years.

    The longer you own a permanent life insurance policy, the better the net cost will be. A lower net cost number is better. Conversely, the longer you own term insurance, the higher the net cost will be.

    There are two types of life insurance that all policies fall into – permanent insurance and term life insurance. Most jumbo life insurance policies are permanent policies.

    What are the differences between term insurance and permanent life insurance?

    Permanent life insurance provides lifetime coverage, meaning that it can be designed to provide lifetime coverage or coverage to a target age. The target age is selected by the policy owner, not the insurance company. Not everyone needs or wants coverage for life.

    Some permanent life insurance policies build up equity or cash in the policy and some do not. Because term insurance has lower premiums in the early years, people mistakenly believe that term insurance is “better” coverage. Not only does permanent insurance have much lower net cost over time, it has much greater flexibility and it is more easily customizable.

    Permanent life insurance is the best value for lifetime coverage.

    Term insurance is temporary insurance – it expires at the end of a guaranteed period. Permanent insurance will stay inforce as long as the policyowner wants to keep it. Permanent insurance puts the policyowner in control of when coverage ends, not the insurance company.

    What Nobody Tells You About Term Life Insurance.

    “Over the past 25 years, people were sold a complicated marketing gimmick called “buy term and invest the rest”. Individual policyholders were told they could invest better than insurance companies, encouraging them to invest the annual difference between a term premium and the higher premium for a permanent policy. The difference would go into a side investment fund to be invested with hope it would be used to pay for the much higher term premiums later in life.

    Buy term and invest the difference has proved to be a costly mistake for millions.

    Although this sounded reasonable to unsuspecting life insurance consumers, “buy term and invest the rest” proved to be nothing more than slick marketing. It has been primarily promoted through multi-level marketing groups and entry level insurance agents. The projections are often run using unrealistic interest rates to grow the side fund. Someone who bought a 20 year term policy in 2005 may have seen projections using 7% while the actual interest rate over that period was half that amount, or less. The proponents often use average S&P returns to justify using high growth assumptions within the side fund. That is not a fair assumption either because the side fund cannot afford losses, forcing the side fund to invest conservatively.

    Insurance companies invest and manage billions of dollars compared to individuals who usually invest much smaller amounts. Insurance companies employ the best and brightest in their investment departments and insurance companies are able to monitor assets on a 24/7 basis, while policyholders cannot. There are no taxes paid while the insurance company is managing the assets. Person after person will tell you they never invested the annual difference. They bought inexpensive term insurance but never built up a side fund. The few who did invest, did not invest with discipline. If they skipped years or withdrew funds from the side fund account, the whole thing was derailed. The result is a messy trail of people with expiring term policies or compromised health. In worse case situations, some have no side fund and they cannot get new coverage because of health issues.

    Most people do not convert their term policy for good reasons.

    More and more people buy permanent life insurance when it is properly presented to them. “But what about Dave Ramsey and Suze Orman who don’t like permanent life insurance?” They are not insurance professionals and they do not offer advice to individuals because that would require them to be in compliance, carry the proper licences and put their reputations on the line. It is easy for pundits to make unsubstantiated claims. They sell ad space, books or subscriptions.

    Buying life insurance is often a process over a lifetime, not a one-time event. Term insurance can be the right decision for young families. The right time to consider buying permanent insurance is sooner than later. The following triggers lead people to consider permanent insurance:

    When moving from the “paycheck to paycheck” lifestyle, we become potential permanent life insurance buyers. Since ninety seven percent (97%) of all term policies do not pay a claim, then 97 percent of ALL term premium were wasted. High Net Worth (HNW) consumers and high income earners choose  permanent life insurance because it has better value:

    Replacing Your Income:  If your family  or business depends on you and your income to run smoothly, permanent life insurance is the right product for those who can handle the higher premiums.  

    Immediate Liquidity:  Very wealthy people own permanent life insurance. They want the guaranteed liquidity it provides at death. 

    Permanent Life Insurance Is The Best Tool For Mitigating Succession Planning Problems:

    • The value of assets fluctuates significantly and death is always the worst time to sell a business or other assets. 
    • Many people have children working in a family business. Life insurance is the great equalizer for those children who do not work in the business. Without liquidity in these cases, there is great risk to a smooth succession of a family business.
    • More and more grandparents own a life insurance policy for each of their grandchildren. The insurance policy is straightforward, inexpensive and a “feel good” asset knowing how it will impact the grandchildren. 
    • Premium Financing. Wealthy people have the ability to finance life insurance. When it makes sense, it is a very effective tool to create tax free wealth.

    Please contact us at 561-771-4647 or email me at TB@LifeCyclePlanners.com about a free review.

    Visit us at www.facebook.com/lifecycleplanners

    https://en.wikipedia.org/wiki/Whole_life_insurance l https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance

    best life insurance. what is term insurance?

  • What To Expect From Insurance Professionals?

    What To Expect From Insurance Professionals?

    The majority of our new clients have life insurance and annuities when we meet them. People are often surprised to learn they are not paying the lowest premiums and they’re also surprised by how much innovation has occurred since they last bought coverage. The addition of living benefits is a great example of a fundamental change to life insurance coverage that is here to stay. On the annuity front, people may not know that annuities guarantee that principal is never lost and some annuities include Long Term Care riders for small rider fees. In essence, these annuities double or triple the monthly payments for long term care needs.

    Working with insurance professionals brings these four advantages:

    1. Experience.
    2. Guidance through the process.
    3. Automatic reviews.
    4. Inside baseball.

    One of the most difficult industries to successfully navigate on your own is the insurance industry. The products come from the actuarial science world, making them difficult to understand for most people. The rate of change within the industry is what makes it impossible to navigate on your own. There are hundreds of insurance companies fighting for market share by constantly creating unique and innovative products. These companies have some of the brightest and most well educated people improving the products they bring to the markets. Unless you make it your business to get educated and stay educated, you will always be ahead when working with professionals. There is nothing simple about buying life insurance or annuities. Even term insurance appears to be a commodity, but it is not. Every company’s product is different and there are significant differences within the carriers.

    For example, unless you have studied the issue of conversion deadlines and living benefits, it is impossible to compare apples to apples for a specific policy you may be considering. The living benefits from one company may cover chronic and terminal illness, but not critical illnesses. That could mean the difference between a stroke being covered by your policy, or not. The two products might be identical in price but one covers critical illnesses and the other does not. I recently helped a couple in California. When I met them, they were unaware that living benefits could allow them to take advances against the face amount of a policy. They were unaware that accelerated benefits are a part of many life insurance policies at no additional cost. When agents sell only price, these things are overlooked. Part of our value is to help people determine exactly what they need and want, and then work backwards to find the best product to match those needs.

    Inside Baseball – what you really need to know.

    No more medical exam! With apply and buy, get up to $5,000,000 of coverage online, in one virtual meeting. There are no doctor records, blood or urine tests, or medical exams that slow down the process. Meetings with agents can be online or in person. The rates for these policies are priced the same as fully underwritten ones. There is no additional cost to apply and buy. Permanent, whole life, universal life or term to 100 can be applied for and issued in an hour.

    More and more term policies do not allow convertibility in all years even though life insurance buyers want long conversion periods. This could be unnecessary risk for most people. Before accepting a policy that cancels the conversion option before the end of the term period, we recommend comparing the rate to policies with a conversion option in all years. Only you can determine if one or two percent of premium is worth cutting out important riders and applications. Our job is to give you the right information to help you make the best possible decisions. Why do conversions matter in a term life insurance policy?

    A Custom Guide.

    Think of a life insurance policy like a brand new Smartphone right out of the box. The phone will have the ability to make calls and do a few other basic things like take photos and go online. I guarantee that your Smartphone and mine do totally different things in addition to those embedded basics. Your phone probably does not have quote engines for life insurance, a NASA photograph app and Tax Facts. Life insurance policies are customized the same way. Basically, they provide a death benefit and some build up equity. But, like the smart phone, that is where the similarities end. My policy includes living benefits, it builds up guaranteed cash values and it pays the death proceeds in guaranteed, equal installments over time. I have different planning goals and objectives than my clients and my life insurance policies and annuities will reflect them.

    There are endless examples that make these same points. There is great value in working with insurance professionals who are committed to staying on the cutting edge of the industry. Our new clients have previous life insurance and annuity coverage that we improve from our experience and from our “inside baseball” knowledge of the industry. For example, life insurance companies often retire products because something about them is too good in today’s market. That can be really good information to know and share with our clients. Most people are not aware of how rapidly innovation is occurring and how quickly it is out-dating their current policies.

    Jumbo Life Insurance Policies – better pricing matters.

    High net worth consumers and ultra high net worth consumers are more likely to buy permanent life insurance to solve liquidity problems upon death and to generate tax free distributions from privately funded pension plans. By far, permanent life insurance is the most economical way to purchase insurance for long term needs. In addition to the superior net cost, it is versatile and flexible. For people buying jumbo life insurance policies, you benefit by being aware of the advantages that were specially designed for jumbo life insurance policies.

    “I’m all set” is one of the most common beliefs people have about their insurance coverage. Most of the time, they’re not.

    A Regular Review is the Key.

    A good life insurance professional is encouraging their clients to review their policies to learn about worthy suggestions and recommendations. A good agent will bring ideas and concepts that might enhance the coverage for their clients. If you are not getting this service currently, you will with us. Please call at 561-771-4647 or email me at TB@LifeCyclePlanners to get started. We offer a complementary conversation about anything on your mind concerning your insurance coverage, succession plan or retirement plan.

  • Term Life Insurance Risks.

    If you currently own a term life insurance policy or if you are shopping for one, this information will help you get the best possible policy for your needs.

    Without knowing the future, it is impossible for any of us to “predict” when our need for life insurance coverage goes away, if that ever really happens.

    The most important step when buying ANY life insurance policy is thinking through the issue of duration. How long do you need and want the policy to last? Once you know whether that is for life or only for a number of years, the right type of policy begins to become more clear. Duration is the major factor in price and it determines which type of policy suits you best.

    People who buy term insurance in their 30’s or 40’s are told that 20 year term insurance is a great option because the premiums are low and because life insurance isn’t important in your 50’s and 60’s? It’s true, the premiums are low. They are low because the chance of dying is small in our 30’s and 40’s and 97% of all term policies lapse without paying a benefit.

    Buy Term and Invest the Rest – A Failed Theory.

    If you are worried that your current TERM LIFE INSURANCE policy will expire soon without good options for new coverage, perhaps you were sold a sales concept suggesting that you should buy term insurance and build up a side savings account outside the policy. Known as “buy term and invest the rest”, people were led to believe they could create their own permanent life insurance plan to beat insurance companies. Why give an insurance company your money to invest when you can do it yourself? It sounded reasonable to consumers and untrained insurance planners.

    Many people are told they wouldn’t need or want life insurance once they were near retirement or when their kids were independent. For millions of Americans, “buy term and invest the rest” has proven to be nothing more than questionable assumptions with serious consequences. Too many of the victims have been left without life insurance coverage for the future AND no hefty savings account. Now what they need is proper guidance and help to make sure they can get, and afford, a new policy to fit their current objectives.

    What went wrong:

    1. Buy term and invest the rest was marketed to sell term policies. People were advised to invest the annual difference between a term policy and a whole life policy in a side account.
    2. The side account was to be used 20 years later to pay the future premiums of a new and more expensive policy.
    3. For example, if a 20 year term premium was $2000 & the whole life premium was $8000, the difference of $6000 was to be invested each year by the insurance policy owner.
    4. The salespeople often projected the growth account at 7% or more.
    5. The side accounts have not grown anywhere close to 7%, after tax.
    6. A huge percentage of people never “invested any of the difference”.
    7. Savings accounts were used for other things, if there was any savings.
    8. The conversion deadlines passed in most term policies.
    9. Current health issues cause new policies to cost more than anticipated.
    10. In divorce settlements, any savings accounts were often divided.
    11. Second marriages extend the need for life insurance, well past 50.
    12. Coverage lapses occur well before life expectancy.
    What to do now:
    1. Check your existing policy’s conversion language, asap.
    2. Determine your insurability for new coverage.
    3. Seek counsel from an experienced life insurance professional.
    4. Compare policies with different durations of coverage.
    5. Buy a customized, flexible policy for today and tomorrow.

    CALL NOW FOR A COMPLIMENTARY CONSULTATION AT: 561-771-4647

    Life insurance is a lifetime need. Ask anyone over 50 if they feel differently about how long they need life insurance.

    As we get older, people worry about how their current health issues might affect the rates for a new policy. A few extra pounds, high blood pressure or high cholesterol are common issues that may increase the premium for a new policy, but not as much as you might think!

    More than 95% of all term policies are NOT INFORCE at life expectancy. It would be the equivalent of paying for auto insurance only until retirement age and hoping you don’t get into an accident.

    Mitigating Term Insurance Risks, Seven Tips.

    Term insurance can certainly be appropriate coverage for some young families. They may not yet have the financial resources to pay for permanent protection and buying term is better than being uninsured. Or, term insurance may be appropriate for bank loans, key-person business life insurance and and divorce agreements. However, buying a term life insurance policy if you have a permanent need is throwing away money.

    “Buy term and invest the difference” or “buy term and invest the rest” was a marketing gimmick that gained awareness through non-insurance professionals like Dave Ramsey, Suzy Orman and thousands of untrained insurance agents who promoted a sales gimmick instead of a counseling people about a critically important solution built on guaranteed outcomes.

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    Busting the myths about term insurance!

    As a result of not investing the difference, you end up in the worst possible position: without coverage AND without a savings account to pay future premiums.

    “Life insurance protection is a key risk mitigator in a family’s financial plan and it’s something people need for life,” says Deborah Bernstein. “We stress the importance of working with the right professionals who customize their unique circumstances.” Flexible policies can adapt to our natural life cycles with flexible premiums for unforeseen events like Pandemics or recessions. Lowering or skipping premium payments can prove to be very helpful during these times.

    Life insurance is intersectional in a family’s planning as it is part of the income protection plan, the succession plan and the financial plan. Done correctly, you can buy one policy for life.

    7 tips when buying life insurance:

    Don’t Assume Life Insurance Is Too Expensive.
    This is a common reason people don’t own enough coverage or the proper type of coverage.

    Don’t Count on Employer-Provided Coverage as Being Sufficient.
    Group term insurance through work is not adequate for most people. It is too expensive compared to individual coverage and it is never convertible to a competitive policy with all the current riders and options. Look at it this way: the premiums are the same for the unhealthy smokers as they are for healthy non smokers. Is that the rate you want to be paying?

    Use Experienced Agents Who Represent All Companies.
    The rates or prices between insurance companies can be quite different. Try not to limit your search for a life insurance policy to just one company. Let a professional do the comparison shopping for you. We work with all the relevant companies to find the best match for our clients.

    Disclose All Requested Information to the Insurance Company.
    During the underwriting process, it is important to answer all of the questions honestly. Insurers will verify the information you provide through the application. You are granting permission to obtain medical records from your doctors, check prescription drug history and motor vehicle history. Full disclosure is best.

    What is the difference between whole life and term insurance?

    Don’t Assume Health Issues Will Keep You From Getting Insurance.
    Don’t assume that you won’t get life insurance at affordable rates if you have common health issues. Each life insurance company has its own underwriting guidelines. For example, some may be more lenient about diabetes or cardiac conditions. Some give better prices to smokers.

    Buy The Right Amount of Coverage for the Right Duration.
    The more life insurance coverage you buy, the more you’ll pay. That doesn’t mean you should skimp on coverage, though, just to save money. The Insurance Barometer Study by Life Happens and LIMRA found that one in three respondents said they didn’t have enough life insurance coverage.

    Please contact us at 561-771-4647 or complete the contact form on this page to schedule a complementary discussion.

  • Term Life Insurance Comparison Tips

    Term Life Insurance Comparison Tips

    Use These Simple Tips To Compare Term Quotes Or To Compare An Existing Term Life Insurance Policy To A New Quote.

    Start by determining how many years of coverage remain in your CURRENT policy? For example, if you bought a 20 year term policy in 2015, it now only has 15 years remaining because it ends in 2035. In essence, you have a 15 year term policy. Next year, it will be a 14 year term policy. To get an apples to apples comparison, you need to compare the cost of a new 15 year term policy to your current premium payment.

    How long is your current policy convertible without new evidence?
    This is the most important provision in your existing policy and what you need to know about a new policy. Most people are unsure about the conversion deadline in their current policy. The conversion option matters. It allows the policyholder to switch from term insurance to permanent coverage, without new evidence of insurability. It is critical for anyone with health changes to be aware of this date.

    Make a list of any other features in your current term policy.
    For example, does your current term policy allow you to take a lump sum advance against the face amount of the policy, at no cost? Nobody should own a policy today without accelerated benefits. Another option is a return of premium. It pays you all your premiums back if you stay in the policy to the end. These are just some features that may not have been available when you last bought coverage.

    Base the new quote on a realistic assessment of your current health.
    Getting the best possible underwriting class results in big premium differences. The annual premium differences for Preferred vs Standard can be 20% or more.

    WITH THIS INFORMATION, YOU WILL BE ABLE TO EFFECTIVELY COMPARE THE DIFFERENT POLICIES AVAILABLE TO YOU! Share the information with the agent you trust to obtain these quotes for you. In no time, the numbers tell the story. Maybe you can reduce your cost or maybe you can spend the same and get a policy with more years and more benefits. You will be surprised at how much better new policies are today.

    Get A Quote! Please call us at 561-869-4500 or email Ted Bernstein, about a complimentary phone consultation.

  • New Alternative Creates Customized Payouts of Life Insurance Proceeds to Protect Beneficiaries.

    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.

  • What Happens When A Term Life Insurance Policy Is Ending?

    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.

  • Whole Life Insurance.

    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

  • How Long Should Your Life Insurance Policy Last? What You Need To Know.

    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.