Life Cycle Financial Planners, LLC

Tag: best life insurance

  • Term Insurance Rescue Ideas

    Term Insurance Rescue Ideas

    Worried that your term life insurance is expiring soon; without good options? Or it can’t be extended without paying 5x more premium?

    By taking control now, we will help you find the best solution the market offers.

    If your existing policy is going to expire soon because the conversion deadline passed and the term period will expire, there are good options even if your health has changed. Many people bought term insurance in their 30’s or 40’s who may have been advised that 20 years of coverage was sufficient. Today, if coverage is still needed, there are policies that have been designed for you. By following a few simple tips, you will NEVER have a gap in coverage again.

    Creating a customized plan is what people want today from their life insurance policy. Our goals and objectives change over time. Understanding this, we make sure the policies and plans we offer adapt to the changes in your family and business. The best life insurance policy offers maximum flexibility.

    “What is the best type of life insurance policy” is the most common question I am asked about life insurance and “How much should I own” runs a close second. Simply, there is no such thing as a “best” life insurance policy. Each one does very different things. The right insurance professional offers every type of policy because buying life insurance is not a one size fits all strategy.

    For example, if you want premium flexibility, you rule out whole life. If you need coverage for life, you rule out term insurance. The best life insurance policy is inforce when you need it and is competitively priced, today and tomorrow. The premiums can be structured to increase over time as income grows. Some people prefer to pay more today and eliminate or reduce premiums in the future. Customization and flexibility are the keys.

    Pro Tip: Review the policy at least every two years, it’s painless. Every owner of life insurance is best served by reviewing it on a regular basis.

    You want a life insurance policy where you will never have to provide additional medical evidence in order to keep it. This is the biggest problem with term insurance; it’s not affordable after the term period without more health evidence. If you own a term life insurance policy or you are considering a new term insurance policy, let us explain the options available that will put you in control, not the policy. Simple new innovations such as the Installment Payout Option can reduce the premiums annually and give you guaranteed protection for life.

    Term insurance or permanent insurance? Which should you buy?

    For many life insurance buyers, term insurance fails when it is needed most and permanent insurance is too expensive initially. Innovation has made customization possible. To get the best insurance policy for you, make sure to consider:

    All life insurance is NOT created equal. There is nothing to gain by working without a professional. Whatever compensation is paid to the agent is a built-in cost. It is ALWAYS paid whether the policy is purchased online or from a professional.

    Please contact me at 561-869-4500 or email me about a complimentary consultation.

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    Wiki

    Permanent Insurance

  • Accelerated Benefits Turn Life Insurance Into Emergency Health Fund.

    Accelerated Benefits Turn Life Insurance Into Emergency Health Fund.

    After A Critical or Chronic Health Event, Advances Are Made Against The Face Value, Not The Cash Value:

    We don’t often use a term like “groundbreaking” when talking about life insurance. But in the case of living benefits, the policyowner now has the ability to take a no cost advance against the policy’s face amount, after a critical or chronic health event. This feature is now available on all types of life insurance policies. Since 2012, we have been helping life insurance buyers learn about and enhance their coverage by adding this option. The ability to take an advance for which there is no additional cost could prove to be invaluable. Also referred to as Living Benefits, accelerated benefits are revolutionizing life insurance policies. Life insurance has traditionally benefited survivors only. The addition of living benefits transforms life insurance into an asset that also benefits owners of life insurance during their lifetime.

    Does your current policy allow you to take an advance against the face amount? Most likely, it does not. But now, you can get a better policy with accelerated benefits. Both term and permanent coverage are available with this option, from several top rated carriers. The question to ask yourself is ‘why keep an outdated policy that doesn’t have living benefits’?

    What is most important to know about living benefits? The advance is unrelated to whether or not there is cash value in the policy. This point is best illustrated through an example. Assume a 40 year old has a $2,000,000 TERM INSURANCE policy with an annual premium of $1500 per year. This policy will never have cash value but it is always eligible for getting an advance against the face value. Let’s further assume that the policyowner has a qualifying event in the 3rd year, entitling him/her to take an advance of $250,000. Of course, this term policy has no cash value and only $4500 in total premiums were paid to this point. The policy still qualifies for a $250,000 (or more) benefit, AGAINST THE FACE VALUE.

    Life insurance needs to be more relatable”, says Deborah Bernstein, owner of Life Cycle Planners. With accelerated benefits, people might think of this option the same way we thought about seat belts when they first appeared in cars. Would anyone accept a car without seat belts once they became available? The accelerated benefits add no cost to the policy but they dramatically increase its value”, she stresses.

    The living benefits turn a life insurance policy into an asset with a dual purpose. In addition to the traditional life insurance benefits for your beneficiaries, the policy is also an emergency health fund for the owner in case of a chronic or critical health event. Even though most people are still unaware of the accelerated benefits option, more and more of the policies include them, FOR NO EXTRA PREMIUM.

    Am I borrowing the cash value from my policy? NO. The advance is against the face amount, not the cash value. No loan or cost is involved in drawing against the face amount of the policy. In fact, this benefit is available on term policies which never have cash value.

    How Do Accelerated Benefits Work?

    In the case of someone who suffers a stroke, for example, the living benefit option allows the policyowner to make a claim which ultimately reduces the face amount of the policy. Perhaps the policyowner wants that $250,000 to help manage the stroke recovery process. The approved amount will reduce the face amount of the policy and future premiums will be reduced. Other illnesses, such as MS and Parkinson’s, are also covered even though they are chronic illnesses.

    Those of you who are familiar with our content, you know that we stress the importance of always working with an experienced life insurance professional. In the case of accelerated benefits, this is never more important. As insurance professionals, we spend a great deal of time learning about the products of different carriers and we know which product is best suited for each of our clients.

    Jumbo Life Insurance Tips

    Adding the Accelerated Benefits Option to Your Coverage.

    Once the best policy for you has been selected, the underwriting process can be done without medical exams or traditional underwriting. For people needing up to $5,000,000 of coverage, some companies no longer require traditional underwriting, meaning that no medical exam or doctor visit is necessary. In one online session, a policy can be applied for and issued. By applying to the right company or companies, the living benefits option will be automatically included in the coverage. It is worth noting that not all living benefits are the same. Some policies cover critical, chronic and terminal health issues – ALL 3 AT NO ADDITIONAL COST. There is no downside for having this extra layer of protection.

    If you need to make a claim for accelerated benefits, we recommend contacting our office and we will help with the claim process. Or, you can contact the insurance company directly, as this can be a very private matter. Once the claim is approved, there is a permanent adjustment to the face amount and the ongoing premium is lowered. Living benefits are considered not to be taxable but you will want to verify with your CPA, since this is not tax advice.

    To get a quote or start a dialogue, complete the contact form on this page or any page on our site and we’ll contact you immediately. Or, you can contact Ted Bernstein at 561-771-4647, or by email.

    To hear testimonials: https://vimeopro.com/aigmarketing/main/video/303384330 / https://vimeopro.com/aigmarketing/main/video/142685717

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  • Buying A Jumbo Life Insurance Policy, What You Need To Know.

    Buying A Jumbo Life Insurance Policy, What You Need To Know.

    Jumbo life insurance policies typically exceed $10,000,000 but there is no hard and fast rule about this. Both term and permanent life insurance can qualify. Jumbo life insurance policies are bought by high income earners, high net worth individuals and ultra-high net worth individuals. Underwriting these policies is completely different than underwriting policies with smaller face amounts and lesser premiums. Many insurance companies have special underwriting teams dedicated to jumbo policies and the agents who specialize in them.

    What are the Advantages of Buying Jumbo Policies?

    If you own or if you’re in the market for a jumbo life insurance policy, you should be seeking the best policy rates. Whether you are considering term insurance or a permanent policy, our knowledge and experience in the jumbo market will help you secure the best coverage possible at the lowest possible price.

    High net worth consumers and ultra high net worth consumers often need permanent life insurance, which is the most cost advantageous way to purchase life insurance. Permanent life insurance has superior net cost, versatility and flexibility. When purchasing jumbo insurance coverage, you want to take advantage of the special policies and programs for the jumbo market. Not all insurance companies specialize in this market. The ones that do may have special rates for larger face amounts. The ultimate rate class issued to the policy is crucial in this market where the difference between a preferred and standard rate could be as much as 20% annually.

    As such, the underwriting class for jumbo policies should be the top priority for the agent representing you. This means the agent should be knowledgeable, experienced and able to demonstrate previous success in this market. Agents must be experienced in the medical and financial underwriting issues, which are big parts of these cases. For example, a $2,000,000 term policy might cost 10% more for a standard rate as opposed to a preferred rate. That difference might only be $150 per year because of the low face amount and low premiums for term insurance. But, when comparing that same 10% difference for a $20,000,000 permanent policy, the annual savings may be $50,000, or more. The best rate class always matters and it should be priority number one!

    Better Rates For Jumbo Policies

    Agent’s Role in Jumbo Life Insurance Underwriting.

    Experienced agents are advocates for their clients while simultaneously acting as a fiduciary working in their best interest. Fighting for the best rate class can be a contentious process. Undoubtedly, every agent wants a shot at placing a $50,000,000 policy but most are simply not experienced or knowledgeable enough to provide the level of experience and professionalism that is required to get these policies placed. Clients win by working with us. Contact me for a jumbo life insurance quote.

    Management of your underwriting information is very important in jumbo cases:

    Insurance companies often share information with other insurance companies, either directly or through the Medical Information Bureau (MIB). Of course, this is typically disclosed and authorized by the life insurance application. The chances of future underwriting problems can increase if the underwriting process is not managed properly, each and every time you submit an application.

    Tips for buying jumbo life policies:

    1. Clear up previous underwriting history. It is important to start the underwriting process by documenting a 5 year health history. An explanation detailing how much coverage is currently inforce is critical. How much existing coverage will be replaced and how much total coverage will be inforce at the end of the process is helpful information for underwriters.
    2. Identify the right insurance company for each insured. There are hundreds of insurance companies vying for these policies. Quickly, we are able to rule out the companies that don’t fit and focus on the right ones. Consumers are not being served properly by spreadsheeting life insurance rates on websites. Trying to put all the important variables on a spreadsheet in an attempt to compare “apples to apples” is shortchanging life insurance buyers, especially jumbo life insurance policyholders. It is done to commoditize insurance products for the insurance companies. Think of insurance companies as product manufacturers.
    3. Prepare a cover letter, including health history. This is an agent drafted story of the case that helps underwriters justify the best possible rate for the new coverage, including any current and past health issues. We recently helped a 66 year old woman acquire a jumbo policy for succession planning purposes. She had been on lithium for 15+ years without incident. Suddenly, she developed a lithium tolerance that created unique health issues and significant underwriting challenges. By providing this information to the underwriters, it helped them realize it was an uncommon medication problem, enabling them to make a reasonable offer.
    4. Product and company consideration. The underwriting classes are often different for permanent and term insurance. Some companies may be more competitive for permanent coverage while others are well known for low term rates. Selecting the right product from the right company can be complex.

    Please contact me at 561-771-4647 or email me at TB@LifeCyclePlanners.com for more information.

    We have guaranteed solutions for annuities with the most competitive short term interest rates. Click here.

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    Wiki

    Permanent Insurance

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  • The Term Insurance Failure

    The Term Insurance Failure

    Buy Term and Invest the Rest – A Failed Theory.

    A growing number of life insurance owners are worried that their current TERM LIFE INSURANCE policy is expiring soon and they find themselves without good options for securing new coverage. Many of these people were sold a sales concept known as “buy term and invest the difference“. Instead of purchasing one policy that would last a lifetime, people were encouraged to purchase something like a 20-year term insurance policy and build up a separate savings account, outside the policy. To make this gimmick sound plausible, they were convinced they would not need, or want, life insurance later in life. Once they were near retirement or when their kids were independent, the term insurance was designed to lapse. For millions of Americans, this has proven to be nothing more than a sales pitch with very detrimental planning consequences. Not only are people forced to buy new coverage later in life, there is no side fund that is needed to pay for the new, and more expensive coverage. Adding insult to injury, some people will not qualify for a new policy.

    How Did This Happen:

    1. If there were side fund accounts, they did not grow close to 7%, after tax.
    2. Virtually no one “invested the difference” with any type of discipline.
    3. If there were side funds, they were often used for other things.
    4. The conversion deadlines passed in most policies.
    5. Health issues cause renewal premiums to be higher than anticipated.
    6. In divorce situations, the side funds were often divided.

    What Happens Now:

    1. Check the conversion language in your existing, inforce term policy.
    2. Determine your insurability for new coverage.
    3. Seek counsel from an experienced life insurance professional.
    4. Consider policies with different duration options.
    CALL NOW FOR A COMPLIMENTARY CONSULTATION AT: 561-771-4647

    Life insurance is a lifetime need. Ask anyone over 50 if they feel differently than they did at 35 about their need for lifetime coverage.

    Most people are unsure how some health issues might affect the rates for a new policy. A few extra pounds, controlled blood pressure or high cholesterol are common issues after 50. They may increase the premium for a new policy but not as much as you might think!

    More than 95% of all term premiums are wasted because they are NOT INFORCE as we get older. If you are currently facing any of these problems with life insurance coverage, contact us to discuss the options. There are solutions but acting now is essential.

    Without knowing the future, it is impossible to “predict” when your need for life insurance coverage goes away, if that ever really happens. If you bought term insurance in your 30’s or 40’s, you were likely told that term insurance was the best option. It was inexpensive because the premiums were low and the premiums were low because the chance of dying was remote. If you are currently in your 30s and 40s, now is a great time to consider options that are flexible and customized to meet your goals and objectives.

    “Buy term and invest the difference” or “buy term and invest the rest” was a marketing gimmick promoted by non-insurance personalities like Dave Ramsey and Suzy Orman. There were thousands of untrained agents promoting this marketing strategy instead of counseling people about proven solutions and guaranteed outcomes. It has taken 20+ years, but we now have a national crisis in coverage that has not been seen before. A large part of the uninsured class now consists of previously insured people in their 50s, 60s and 70s.

    Term insurance may be appropriate coverage for young people with children who may not yet have the financial resources to pay for permanent protection. It makes sense to cover bank loans, key-person life insurance obligations and for divorce agreements.

    Busting the myths about term insurance!

    Please complete the contact form on this page. Or, contact Ted Bernstein at Life Cycle Planners for a complimentary consultation.

    CALL NOW AT 561-771-4647 FOR A FREE CONSULTATION

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