Life Cycle Financial Planners, LLC

Tag: buying life insurance

  • Wealthy People Own Jumbo Life Insurance Policies – For Good Reason.

    Wealthy People Own Jumbo Life Insurance Policies – For Good Reason.

    Most wealthy people wish to preserve and protect their assets from federal estate taxes when those assets are transferred to their heirs. Perhaps you’re in this situation, and are looking for the best solution?

    High net worth people use large amounts of life insurance to create the lowest possible cost of liquidity for the purpose of minimizing the impact of estate taxes. Without life insurance, federal estate taxes are paid 100% from estate assets.

    Jumbo life insurance coverage, (often financed in a creative way), is a critical element in state-of-the-art succession planning and will help you transfer wealth with ease and much greater certainty.

    High net worth people pay close to 50% in estate tax, on top of paying many other taxes while accumulating their wealth. 

    Minimizing the burden of taxation on transferred wealth is sensible planning.

    For these reasons, properly structured permanent life insurance is a necessary part of sophisticated estate planning strategies. To support and enhance these planning techniques, life insurance guarantees that liquidity is available upon death. This means less pain for your heirs.

    Highly regarded income and estate planning attorneys are leading advocates of life insurance for estate planning purposes because it creates the immediate liquidity that binds their wealth transfer plans. 

    Use your existing assets to secure jumbo life insurance coverage.

    The cost of life insurance is low when structured properly. It is very important to understand how the jumbo life insurance definition affects pricing. 

    The cost of life insurance is a fraction of the return generated from the death benefit. 

    As people become more wealthy, it becomes increasingly more difficult, without insurance, to successfully protect the majority of their assets from estate and gift taxation.

    Once the decision to purchase life insurance coverage is made, the question of how to best pay for the insurance can be considered. These issues are dependent upon many factors and it is why customization is always best. Should the premiums be accelerated? Should the coverage be whole life or indexed universal life?

    Does premium financing make sense?

    Borrow the Premiums to Pay For the Life Insurance Policy.

    Premium Financing:

    • Borrowing the premiums from a bank can be an optimal way to fund permanent life insurance while offering great flexibility in the future.
    • Uses well managed loans to drive down out of pocket costs.
    • Non recourse design requires minimal collateral other than the life insurance policy.
    • Results in fully funded policies with many options to pay off the loan (always dependent on projections).
    • Minimizes out of pocket costs in all years until the anticipated exit strategies pays off the loan.

    Work With Me To Help You Structure The Right Plan.

    For 30+ years, I have been working with individuals, families and businesses facing these very same issues. Typically, my clients work with a team of cutting edge professionals. Whether they are estate planning attorneys, CPAs and wealth managers, my clients are people who appreciate expertise from professionals who bring valuable experience from their respective fields. I have helped my clients acquire more than $1B of permanent life insurance coverage and I have placed individual policies in excess of $50,000,000. I work with my clients to create value in many ways.

    Driving down the commissions in jumbo life insurance policies can have a direct correlation to better policy performance in the early years.

    I will help you get the best underwriting offers possible. It is critical to help the underwriters properly evaluate an applicant’s medical history in order to qualify for the best rate class.

    Testimonial:

    “After spending several years working with top tier estate and tax advisors to put a succession plan in place, our counsel put us in touch with Ted Bernstein for the purpose of getting life insurance. I can’t say it any simpler than by saying, after working with Ted, I became aware that there is a real difference between insurance people. Ted is approachable and good at making insurance relatable.” Jake Garlick, Virginia

    Please contact Ted Bernstein at 561-771-4647 or email him at TB@LifeCyclePlanners.com. He offers a complimentary consultation to discuss anything you wish about premium financing, succession planning and wealth preservation. If you have questions about Private Placement Life Insurance (PPLI), Ted can help make sense of this very complicated vehicle.

  • Why Do Some People Own Permanent Life Insurance?

    Why Do Some People Own Permanent Life Insurance?

    Permanent life insurance offers the best value possible. In the world of life insurance, the lowest net cost means the best value. People who can afford higher premiums in the early years demand the best value and they will be infinitely better off, in terms of the net cost, with a permanent form of life insurance.

    Term life insurance has low entry premiums but it is only temporary insurance and it is priced accordingly.

    Because it has low entry premiums, term insurance is easy to sell. The Term-ites (term only salespeople) attempt to commoditize this product so it can be easily sold online without a professional’s help. They can be somewhat cultish about why they believe term is better, all the time, for everyone. Some life insurance companies have carved out a niche as term only carriers because term insurance certainly has its place in the market. It is often the right choice for buy-sell agreement funding, short term loans and young families with limited financial resources.

    Permanent life insurance is often referred to as whole life insurance and it offers much better value for life insurance buyers who want lifetime coverage and can afford higher premiums in the early years. Comparing the net cost of permanent life insurance to to the net cost of term insurance is the right way to measure its superior value. Using the simple definition of net cost to be the total premiums paid minus total cash value, the goal of switching from term insurance to permanent insurance is an important step to take in optimal life insurance planning.

    What is the difference between term insurance and permanent life insurance?

    Permanent life insurance is better value for anyone considering coverage for life. Term insurance is the ideal name for temporary insurance. Term premiums increase when we are forced to renew. When the temporary insurance expires, people often find themselves without coverage when it is needed most.

    People buy permanent life insurance once its superior value is understood.

    “But Dave Ramsey and Suze Orman don’t like permanent life insurance”. Neither of them are insurance professionals and neither one counsels individuals. Their target audiences are young families unable to buy anything but term coverage and we applaud these families for doing so. Dave Ramsey and Suze Orman’s job is to sell ads and one way to do that is by making indefensible claims about popular products.

    When people move out of the “paycheck to paycheck” lifestyle, they become potential permanent life insurance buyers. Since more than ninety seven percent of ALL term policies do not pay a claim, then 97 percent of ALL term premium are wasted.  High Net Worth (HNW) consumers and high income earners need permanent life insurance for many different reasons:

    Income Replacement:  If your family  or business depends on your income, regardless of your age, life insurance guarantees no family disruption due to loss of income. 

    Immediate Liquidity – Wealth Transference:  High net worth and ultra-high net worth people own life insurance because they want GUARANTEED LIQUIDITY at death and they purchase permanent insurance because it’s guaranteed for life. 

    Some others are:

    • Asset values can fluctuate significantly. 
    • 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 the business.
    • Many clients own a life insurance policy for each of their grandchildren. The insurance policy is straightforward and inexpensive.
    • Premium Financing. HNW people have the ability to finance life insurance. When it makes sense, it is a very effective tool to create tax free wealth.

    High Net Worth people own life insurance to reinforce their succession plans. In these cases, assets may be real estate, businesses and other non-liquid assets. Life insurance provides immediate, tax free liquidity. It gives the family and their advisors time to properly execute the succession plan. Too many times, without sufficient liquidity, anxiety creeps in and family members get nervous. This can lead to litigation, confusion and disruption.

    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?
  • Sell Your Unwanted Life Insurance Policy For Cash.

    Sell Your Unwanted Life Insurance Policy For Cash.

    Are you over 65 with a life insurance policy you no longer need or want? Like any other asset, it can be sold for cash in the secondary market.

    Life insurance policies have value in the secondary market. Institutional investors will buy policies from people who have determined they do not need or want the policy. The market is best for people over 70 who are not in perfect health. If you fit this profile, you have an opportunity to sell your unwanted policy for a lump-sum, before lapsing or surrendering it.

    Even term policies have value. We help policyholders determine the secondary market value of their inforce policies. The value of a life insurance policy is expressed as a percentage of the face amount. For example, if you sell a $1,000,000 policy for 5 percent, you would get paid a lump-sum of $50,000.  A $3,000,000 policy could fetch $150,000, or more, depending on the percentage. The important considerations are health and the type of policy. There may be some income taxes to consider on these sales (each sale is different) and that is easy information to obtain. After the policy is sold to the new owner, future premium payments are theirs.

    Term policies also have secondary market value but most policyholders are unaware of what this means.

    Life insurance is an important asset to your beneficiaries and I urge potential sellers to consider keeping the coverage whenever possible. There are many creative ways to retain an inforce life insurance policy and you may want to consider them before selling the policy or letting it lapse. There are hybrid arrangements in which you give up a piece of the face value in exchange for having the future premiums paid.

    Life Settlements convert your policy to cash through a sale to an interested buyer. This is no different than selling any asset when it is no longer needed or wanted.  The policy is  appraised along with your medical records and an offer is then made to the owner, if they determine there is value. Sometimes, no offer is made, depending on the outcome of these appraisals. Some people are too young and healthy or they have a policy that is not attractive to buyers. Other times, the market favors sellers, not buyers.

    Getting an appraisal by working with a broker creates great value to sellers. You may have heard ads from some buyers who are attempting to go direct to sellers and that is certainly one approach but it is not optimal? Why deal only with one buyer when there are dozens, if not more?

    As a life insurance professional with secondary market experience, I represent sellers by bringing the policy to all of the market. By putting buyers in a competitive situation, your offers will increase. The U.S. market is robust and you want an agent with access to the maximum number of capital sources buying policies.

    Should you sell your policy? It pays in many ways to work with a professional working solely in your best interest. A life insurance professional is qualified to help you think through the pros and cons of selling a policy. Before making a decision, I advise my clients to speak with their spouse, other advisors and often, their heirs. This information about a life settlement transaction may help.

    Interested but unsure? The best way forward is to determine if your policy has value. There is no downside and no obligation to obtain this value or to get bids. You will learn a great deal about the policy you own.

    To determine its value, potential buyers need the following information:

    1. Policy projections including the premiums to keep the policy in-force to various ages.
    2. The type of policy and its terms. Some policies have no value in the secondary market because of their terms.
    3. The life expectancy of the policy owner which is determined by an independent, 3rd party analyst. No medical is necessary.
    4. A detailed history and understanding of the policy owner’s current and past health.

    Typically, there is minimal value for policies owned by healthy people under the age of 70. If there are health considerations leading to a shorter life expectancy, that may change the numbers in your favor. I recently helped a 73 year old man sell a $3,000,000 policy. Because of previous medical history, he received several offers. He sold the policy for 16% of face value, or a little bit more than $450,000.

    Are term policies eligible for sale in a life settlement?
    Yes. You should be age 65 or older with some decline in health since the policy was issued. Term policies are typically bought for a temporary insurance need, unlike permanent policies where the policy owner typically has a long duration or lifetime insurance need.

    Are there special requirements for selling a term insurance policy?
    Most life settlement buyers want term policies that are convertible to some form of permanent insurance. Therefore, being able to control future premium obligations through a conversion is usually ideal.

    When does the conversion privilege on a term policy expire?
    The answer varies among different policies even issued by the same company. Some limit the conversion period to a number of years; other companies may also impose a maximum age.

    When should I begin the process if a conversion is involved?
    A life settlement transaction requires getting medical records, in-force illustrations, life expectancy analyses, investor pricing and the closing. In addition, a term settlement usually includes issuance of the conversion policy. Because the entire process usually takes 3 to 4 months, you should get it started at least 4 to 6 months prior to the expiration of the conversion privilege.

    Can I sell part of a term policy and keep part?
    Insurance companies typically do not permit a permanent policy to be split for a life settlement. It is worth exploring if they will allow partial conversions. Then, it would be possible to sell only a portion of a term policy by doing a partial conversion as part of a life settlement transaction. The remaining policy can be kept as term insurance or be converted separately.

    I offer an initial, complementary consultation in person or by phone. Please email me or fill out the contact form on this page and I will contact you shortly. You can call me direct at 561-869-4500.
    ted bernstein, selling your life insurance, ted bernstein boca raton, ted bernstein insurance
  • Term Life Insurance In Danger of Lapsing?

    Term Life Insurance In Danger of Lapsing?

    Is your term life insurance lapsing?

    Do you know when the conversion deadline in your term life insurance policy expires?

    One of the most critical dates in a term life insurance policy is the conversion deadline. You don’t want the conversion deadline to pass without your consideration. Insurance companies DO NOT notify you as the deadline is approaching. Many people who purchased term life insurance within the past 20 years may not understand this option. Term life insurance lapsing can create problems for families and businesses. Too many inforce policies do not allow you to convert the policy in all years without new evidence of insurability. To avoid finding yourself with limited options after the deadline has passed, speak with an insurance professional.

    Why would I convert my term policy?

    To continue a term life insurance policy after your health has changed, the conversion option is key. You may never need to convert your term policy to permanent insurance but if you have a significant health problem after purchasing the policy, you may fall into the rated or un-insurable category. When this happens, that conversion deadline becomes critical. Conversion may be your only option to keep life insurance with premiums based on your previous good health. Unfortunately, there are millions of people who are unable to convert because the deadline expired. For example, if you own a 20 year term policy, it may only be convertible in the first 10 years or until age 65.

    What should I know if I own a term policy?

    You want a policy with no conversion deadline or the longest one possible, something like 80% of the guaranteed term period. It is equally important to buy from a company that allows you to convert to their entire portfolio of products. Some companies limit term conversions to only one policy, often not their best. Terry Savage offers some great advice in her recent column about term life insurance lapsing because of unknown conversion deadlines. If nothing else, check your current policy’s conversion deadline.

    https://www.terrysavage.com/term-insurance-running-out/ 

    https://wgntv.com/2018/08/01/financial-expert-terry-savage-on-term-life-insurance-credit-card-debt/

    Can I buy a term policy with Living Benefits?

    Living Benefits may be the single most important enhancement to life insurance in the past several years. At no additional premium, Living Benefits allows you to draw against the face amount of your policy when you have a critical, chronic or terminal health event. It is not a loan and there does not have to be any cash value in the policy. It is an advance and it comes from the face amount. You can receive up to 90% of the face value depending on the severity of the health incident.

    If you currently own life insurance, chances are good that your policy does not have these Living Benefits. Adding Living Benefits and a better  conversion deadline are two good reasons to consider new coverage.

    We offer state of the art solutions for life insurance and lifetime income annuities. Let us help you minimize your premiums and maximize the value of your coverages. Please call us at 561-869-4500 or email me at TB@LifeCyclePlanners.com. Upon request, we will send a complementary overview of Living Benefits.

  • Permanent Life Insurance, Lower Net Cost Than Term.

    Permanent Life Insurance, Lower Net Cost Than Term.

    Term Insurance or Permanent Insurance?

    Watch out for these term insurance risks .

    Do you want permanent life insurance coverage for your family or business, regardless of how long you live? Then a permanent insurance policy is right for you.

    There are important differences between term life insurance and permanent life insurance such as whole life and universal life. These differences go way beyond price. The proper way to compare life insurance is to compare the net cost of different options. The people pushing term insurance use a marketing gimmick known as “buy term and invest the difference”. The problem is:

    Nobody invests the difference!

    If you want a policy that will protect your family for life, a permanent policy is the only option. If you want a better net cost, again you want to be looking at permanent coverage. The net cost is much lower than term insurance.

    The Risks of Term, Look at the Math: A male 35 will pay $950 annually for $1,000,000 of term (for a female, a little less). The 10-year net cost of this policy is a LOSS OF $9500. Over 30 years, the policy will have a net loss of $28,500. The term policy will lapse at age 65 with no value. If this person is healthy, he has 20 more years to live, using today’s projections. If the person is unhealthy, he will be unable to get life insurance or it will be un-affordable. Millions of people over 60 today cannot afford what is available to them.

    The Advantages of Permanent Life Insurance: On the other hand, the same 35 year old can buy a permanent policy for $9525. Yes, the premium is significantly more than an equivalent term policy and this automatically rules out all the people who currently do not have the cash flow to buy a permanent policy. The $9525 premium is guaranteed to stop at age 65. The 10-year net cost of this policy is projected to be a GAIN OF $2721. The 20-year net cost is a GAIN of $97,816 and the 30 year GAIN is $343,059.

    Over 30 years, the net cost for term is a negative $28,500. The projected gain, using the current dividend scale, is a stunning $343,059. If you would you like to see a simple presentation customized for you, please complete this form and we will be in touch or feel free to call us at 561-771-4647.

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    A permanent policy will remain inforce as long as you need it to without any new medical information. The equity in the policy can be tapped at anytime and today, many permanent policies offer Accelerated Benefits for health emergencies.

    Why doesn’t every life insurance buyer own a permanent policy?

    The number one reason young people select term insurance is affordability. Many young life insurance buyers do not currently have the necessary cash flow to purchase permanent life insurance, and that forces them to purchase term. In too many cases, the term policy that was selected only for its lower cost is not replaced with a better, more appropriate permanent policy, when it is affordable. The right insurance professional should be stressing the importance of replacing the term policy as soon as possible. Term insurance is the right product only if your need for coverage is temporary. Paying premiums into a term policy is throwing away money 97% of the time because 97% of all term policies lapse before paying a claim.

    Most young people underestimate their desire to have life insurance later in life. People over 50 want insurance for life to protect their spouse, children or grandchildren.

    If you have not looked at the net cost advantages of permanent life insurance recently, you might be surprised at its low premiums and low net cost. The entire process, from quotes to underwriting, can be done online and, in many cases, there is no medical exam at all.

    Why Permanent Life Insurance?

    • The net cost of permanent life insurance is superior to term.
    • Does not expire, is there when you need it most, one policy for life.
      • Consult with an experienced insurance professional to get a customized policy.
        • DO YOU WANT YOUR HEIRS TO RECEIVE LIFE INSURANCE PROCEEDS, GUARANTEED FOR LIFE? 
          • Secondary market value. A permanent policy can be sold for cash if you do not need or want the policy after age 70. Typically, you cannot sell a term policy in the secondary market if it can’t be converted.

    The following video speaks to the virtues of permanent life insurance.

    You can 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

  • Jumbo Life Insurance Policies: Which one is best?

    Jumbo Life Insurance Policies: Which one is best?

    Jumbo life insurance policies typically begin with face amounts of $10,000,000 and are often purchased by high net worth and ultra-high net worth people. Some insurance companies and some life insurance professionals cater to this market which is highly specialized. 

    Jumbo life insurance buyers will work with insurance professionals to secure coverage with the lowest rates and the best underwriting class. There are considerable differences when underwriting policies for $1,000,000 and ones for $15,000,000, $50,000,000 or $100,000,000.

    A key factor in determining the policy’s premium is the underwriting class that is offered. The difference in underwriting classes can be dramatic. Double digit differentials are typical because the cost of insurance is higher as the classes reflect.

    Don’t be fooled by “loss leader” rates that initially look good during the quoting process. The quoting process is not where the battle is won and lost.

    The best preferred rates are offered to people who take no medication, have no medical history and whose families have no medical histories. Underwriting term insurance is very different than underwriting permanent insurance such as whole life, indexed universal life and guaranteed universal life. Most high net worth consumers prefer permanent life insurance because they understand that the net cost of permanent life insurance is much lower than term insurance.

    In fact, getting you the best underwriting class should be the agent’s top priority once underwriting begins. Doing this properly requires experience and expertise from a professional who is willing to push back based on knowledge about illnesses and medications. The right agent will have extensive relationships with underwriters and who can represent all companies. Working with insurance agents who represent only one insurance company, known as a captive agent, is working against the best interest of life insurance buyers.

    There are only a small group of insurance companies specializing in the large case life insurance market. Insurance companies may share underwriting results with one another, which is authorized through the application process. One way is through the MIB (the medical information bureau). The chance of future problems increases if the underwriting process is not being managed properly. The best outcomes occur when insurance professionals represent the best interests of their client by approaching the process with complete transparency and disclosure.

    What you need to know for obtaining the best rates:

    Check your known underwriting history before submitting new applications. I work with my clients to get an accurate picture of their health history and their life insurance history, including previous submissions. With this information, we create a report of how much coverage is currently inforce and how much will be replaced, if any. The total amount of inforce coverage at the end of underwriting is critical information to share with underwriters, at the beginning of the process.

    Chronicle the medical history. This helps us understand both current and past health issues which may impact underwriting decisions. 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 any problems. Suddenly, she had developed a tolerance to the lithium that created some temporary issues. All her current coverage was issued on a preferred basis. Knowing the history helped the right underwriters understand it was a medication problem and nothing else. Many underwriters declined the case.

    Product Design. The underwriting criteria is different for permanent coverage than it is for term insurance and selecting the right product can be complicated. Commissions, high cash value riders and term blends should all be considered as each of these variables can impact price and net costs. 

    Premium financing and jumbo life insurance: In many cases, it is a perfect combination. Premium financing is often an ideal strategy for purchasing permanent life insurance. Like now, loan rates are significantly lower than a policy’s rate of return and a policyholder’s ROI. An in depth analysis must be done by the life insurance professional to outline the pros and cons of Premium Financing:

    Cover letters go a long way in helping underwriters understand what a prospective client is trying to accomplish with life insurance. Often, these jumbo life policies involve complex estate planning strategies. A cover letter is always beneficial. 

    Please contact me at 561-771-4647 or email me. I offer a complimentary consultation to discuss anything you wish about life insurance or annuities. I am proud of the things many clients have chosen to say about us and perhaps they will give you additional insight about how we do business.

    You can visit us at www.facebook.com/lifecycleplanners

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

  • A Whole New Look At Life Insurance Advantages.

    A Whole New Look At Life Insurance Advantages.

    https://money.usnews.com/money/personal-finance/family-finance/articles/2017-07-27/3-ways-to-use-life-insurance-while-youre-still-alive?sf74224675=1

    It used to be that life insurance only provided benefits to your beneficiaries. Like everything else, innovation has made life insurance far more valuable than ever before.

    Now you can tap the face amount of your policy if you have a health crisis. Think of it as an unfunded savings account. You could have a one million dollar policy with no value in it. At possibly the worst time in your life, you have guaranteed access to a portion of the million (up to 90%).

    Another innovation allows you to fund the policy and never lose principal when the market is down. No risk, only potential upside.

    Not impressed yet? If you reach the point where you don’t want or need the policy, you can sell it for a profit like any other asset you own.

    Please contact me at 561-869-4500 or email me about a complementary consultation including guaranteed income ideas and a review of your existing coverage. You can visit us on Facebook.

  • Customized Insurance Policy Lowers Premiums As Much As 40%

    Customized Insurance Policy Lowers Premiums As Much As 40%

    NEW INSTALLMENT PAYOUT OPTION REDUCES ANNUAL LIFE INSURANCE PREMIUMS AS MUCH AS 40%!

    Life insurance buyers have a new and often better option to protect their beneficiaries. According to Ted Bernstein of Life Cycle Financial Planners, it is an important choice policyowners now have when it comes to providing long term security for their families. The Installment Option can be 40% less premium, annually.

    Life insurance owners can choose how their proceeds are paid to their heirs with this option. Until this groundbreaking change emerged, a Lump-Sum payment of insurance proceeds was the only choice. Instead of having $1,000,000 paid in a lump-sum, policyholders can instruct the insurance company to customize the payment of the benefits to protect their heirs. For example, the insurance company can pay 10 equal payments of $100,000. Or, another family may choose to receive a lump-sum payment of $500,000 upon death, followed by 5 equal payments of $100,000 would be better.

    We insure every aspect of our lives including our health, our homes, and our income. Why not protect your beneficiaries from mismanagement they can’t recover from, especially after you’re gone?

    INSTALLMENT PAYOUT OR LUMP-SUM? WHICH IS BETTER?

    “A Lump-Sum payout to heirs is often a recipe for disaster”, warns Ted Bernstein of Life Cycle Financial Planners.  The proceeds are gone within 3-5 years because it is difficult for many to manage a sudden lump-sum of money, similar to the issues facing lottery winners who take a lump-sum. As a result, life insurance consumers now have an alternative.  “Policyholders can protect their families from investment risk and drastically reduce their insurance premiums at the same time”, says Mr. Bernstein.

    Frequently Asked Questions:

    For many, it is a better structure and choosing it can save consumers as much as 40% EVERY YEAR for the same amount of insurance.  Or, they can increase the coverage by 40% for the same premium as a lump-sum option. The payments can be paid between 10 and 30 years.

    Ask us about apply and buy life insurance that allows life insurance buyers to get up to $5,000,000 of coverage in one phone call! WITH NO MEDICAL EXAM. No blood or urine tests, visits from insurance company doctors or an agent! Both term and permanent life insurance policies are available – Term, Whole Life, Universal Life, Guaranteed Universal Life, Indexed Universal Life.

    “From my experience, parents want to make sure there is enough life insurance to avoid any economic upheaval in the event of an early parental loss”, advises Deborah Bernstein of Life Cycle Planners. “The installment option is peace of mind you just don’t have with a lump-sum payout. We have seen too many situations where all the proceeds are gone within a few years of lump-sum payments”. As the innovator of this option, Ted Bernstein says both term and permanent policies are available from the highest rated U.S. insurance companies.

    Special Needs Families:  For families with special needs children, there is no room for error when it comes to investing assets for a lifetime. The Installment Option provides these families with a GUARANTEED solution.

    The Installment Payout Option:

    • Reduces premiums as much as 40% for same amount of death benefit.
    • Premiums and benefits are GUARANTEED.
    • Protects heirs from risk by guaranteeing payments over time.
    • Customizable – great flexibility. Payment periods between 10 and 30 years.

    Please call us at 561-869-4500 and let us help you compare your existing coverage. Or, email Ted.

    Make sure to inquire about Life Insurance with living benefits and turn the face amount of your life insurance policy into an emergency health insurance fund.

  • Catastrophe Insurance For Critical Health Problems says Ted Bernstein Boca Raton

    Catastrophe Insurance For Critical Health Problems says Ted Bernstein Boca Raton

    Living Benefits Adds Immediate Protection For Critical & Chronic Health Problems says Ted Bernstein, at no extra cost! Does Your Current Policy Allow You to Take an Advance Against the Face Amount at No Cost? Learn How You Can Get Money From Your Life Insurance Policy. Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Life Insurance is benefiting from innovations in medicine, prevention and intervention. These innovations lead to lower premiums. Policies from only 5 years ago are obsolete in terms of price and features. For most people, being older does not matter; rates are dropping at a faster pace than we are aging and the coverage is getting better too. Catastrophe Insurance For Critical Health Problems by Ted Bernstein Boca Raton 

    Call us today at 561-869-4500 to upgrade your policy to one with living benefits, either for term or permanent policies.

    The following link answers the most basic questions about the value of adding living benefits to your coverage:Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Living Benefits: LIVING BENEFITS OVERVIEW

    Our job is to guide you through the selection process to make sure you get a policy with all the living benefits (critical, chronic, terminal) and the lowest premiums. We offer policies that most other agents can not offer you. Because we have been selling living benefits coverage since 2013, we are market leaders for A+ carriers specializing in living benefits. Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Want to learn more? Please contact me at 561-869-4500 or by email. I will clarify and answer any questions on a complementary basis.”

    Ted Bernstein Boca Raton Florida 

     

     

  • 10 Life Insurance Underwriting Tips To Lower Your Costs

    10 Life Insurance Underwriting Tips To Lower Your Costs

    Life Insurance Underwriting – Demystifying The Black Box of Underwriting

    Sex, Drugs and Genetics

    One of the most effective ways of reducing your cost of life insurance is by improving the rate class or making sure to get the best class possible when buying new coverage. Once you decide to purchase a life insurance policy, the process of underwriting begins. Life insurance underwriting is the process allowing an insurance company to determine the appropriate rate class for your policy. It is important because the rate class determines the premium. There are many different rate classifications, usually starting at preferred. Most companies use a system with 16 extra classes – the highest rating being a Table 16.

    A system of credits and debits.

    Overweight by 20 pounds? On high blood pressure medication? Smoke an occasional cigar or occasionally use marijuana?

    Most people feel certain that any one of these will cause their life insurance premiums to be higher. In most cases, not one of them will increase the rate or knock you out of standard rates.

    You should expect to pay the lowest possible premiums and receive the best rate class each company offers, based on your specific information.  It is the responsibility of your agent to get you the best rate by giving the underwriters all the information in the best light possible. Underwriters convert positive information into credits and negative information into debits. More information is better. Still, too many people are not paying the lowest possible premiums.

    The difference between one or two rate classes can lower premiums by 20% or more, annually.

    Life insurance underwriting is a blend of art, skill and experience. The key to getting the lowest rates possible is full disclosure on your part. The improvements in medical sciences are leading to lower premiums.  These improvements lead to more people reaching life expectancy, resulting in decreasing premiums. In other words, the rates you are paying on policies issued several years ago are likely MORE than new policies issued today, even though you are older. If you are in similar or better health, you should be able to reduce your cost of life insurance. 

    The following issues require good life insurance underwriting management. A good underwriter will consider many factors to determine your rate class. The more information you and the agent provide to the carrier, the better your chances will be in creating maximum credits:

    • Extra weight. Most people carrying extra weight miscalculate by a lot how their premiums will be affected.  Typically, unless the extra weight puts you in the obese class or is causing other medical problems, added pounds do not automatically warrant any rate increase. 

    • Cardiovascular issues.  Many life insurance companies excel at underwriting these cases.  If there is good follow up and control, many insurance companies will consider standard rates after a few years.

    •  If you have had cancer in the past, you have a reasonable chance of getting a policy with standard or preferred rates, depending on the history and your current health.  Do not assume the worst; this is a classic mistake made by people and their advisors, including their physicians. I have many clients with cancer history who now have standard rates.

    • People with Type 1 diabetes typically have impaired life expectancy across the board, so your rates will depend on how well controlled your condition is and what you need to control it. If well controlled, Type 2 should lead to a smaller spike in rates. Diabetes is complicated and requires excellent underwriting.

    • Mood Stabilizing Drugs, Depression, Psychotherapy. If you’re taking medication for an ongoing condition  such as anxiety or depression (meaning it’s more than just a temporary state due to, say, a loved one’s death), you will probably see higher rates, but typically not what most people expect. The insurance industry needs to review these issues regularly as the medications are better and untreated anxiety and depression is far worse.

    • Family history.  If immediate family members have had serious or hereditary conditions, that may prevent you from getting preferred rates.  The biggest culprits here are cardiovascular disease (especially if a parent died from it before 60), cancer and diabetes.

    • Cholesterol & High Blood Pressure. Controlled high cholesterol and blood pressure, by themselves, typically do not add extra cost or deny you preferred rates.  With these conditions, it is all about control and stability.

    • Nicotine use. The use of nicotine comes in many delivery systems and life insurance companies are not consistent about this topic.  Using the Installment Payout Option can help smokers reduce their premiums by as much as 40% per year.

    • Driving History. If you have more than two moving violations in the last three years, you likely won’t be able to get the best life insurance rates. Time is your friend here, even for the most serious offenses.

    • Substance abuse. It is impossible to generalize with substance abuse history.  However, with full disclosure and a strong record of non usage, life insurance can be obtained at standard rates. 

    • Lifestyle/Career Issues. Any hazardous, regular activities such as rock climbing, motorized racing, skydiving, ultralight flying, hang gliding, and scuba diving could increase life insurance premiums.  

    While some companies increase rates for firefighters and police officers, many do not.

    Full disclosure and working with an experienced agent is crucial.  Knowing which companies excel in the each area and then not being afraid to challenge underwriters are some of the advantages you will get from an experienced professional.

    Want to learn more? Please contact me at 561-869-4500 or by email. I will clarify and answer any questions on a complementary basis.”

    Ted Bernstein Boca Raton Florida