Life Cycle Financial Planners, LLC

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  • 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.

  • Retirement Tips & 10 Useful Retirement Terms.

    Retirement Tips & 10 Useful Retirement Terms.

    Whether you’re in retirement or getting ready to retire, here are 10 useful retirement tips and terms.

    Protect Your Nest Egg:

    1. Full Retirement Age: Full Retirement Age (FRA) is the age you can receive 100 percent of your Social Security benefit. If you delay, the benefits will increase by 8 percent, up to 70.
    2. Spousal Benefits: Another strategy that may help maximize your Social Security income is the spousal benefit. The spousal benefit is an option to receive your own benefit or one-half of your spouse’s benefit, whichever is greater.
    3. Lifetime Income: A term used to describe income for life. Social Security, pensions and annuities all provide lifetime income.
    4. Retirement Asset Diversification: Similar to portfolio diversification, you may benefit from having different types of assets. One of the most important retirement tips to consider is working with a retirement professional to stay properly diversified.
    5. Required Minimum Distributions: Mandatory IRS distributions to begin taking withdrawals from your retirement accounts, such as IRAs and 401k. They are taxable and they begin at 70½, regardless of whether you want them.
    6. Re balancing: Re-balancing is a strategy to help keep your investments aligned with your time horizon and risk tolerance.
    7. Medicare Parts A, B, C, D: 
    • Part A – Hospital Coverage: If you qualify for medicare, you’ll pay no monthly premium for Part A coverage. However, you will have to meet the annual deductible before Medicare kicks in.
    • Part B – Non-Hospital Medical Coverage: Optional coverage for  doctor’s visits, tests, physical therapy, etc. You may want to opt out if you continue health insurance through a qualifying employer, or spouse.
    • Part C – Medicare Advantage: An alternative to Parts A and B, it offers coverage through private insurance companies that contract with Medicare. May provide benefits such as vision or dental care at an additional cost.
    • Part D – Prescription Drug Coverage: Adds prescription drug coverage to Medicare. It is offered by insurance companies and other private companies approved by Medicare.
    1. Donut Hole: A retirement term that describes the gap (or hole) in Medicare Part D, prescription coverage.
    2. Long-Term Care Insurance: Coverage for people who need help with common daily living activities, such as bathing, eating and dressing.
    3. Estate Planning: Preparing for retirement is a good time to review or create an estate plan. Updating living wills and powers of attorney is a good idea too.

    Please contact me at 561-869-4500 or email me to discuss these retirement tips or a review of your current plan.

    You can visit us at www.facebook.com/lifecycleplanners and www.linkedin.com/tedbernstein

    ted bernstein, ted bernstein insurance, ted bernstein boca raton, ted bernstein life insurance, deborah bernstein
  • 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.

  • “Not My Family!” Strategies To Avoid Wealth Destruction

    “Not My Family!” Strategies To Avoid Wealth Destruction

    Wealth destruction at inheritance time is showing no signs of slowing down. More and more family members are litigating with one another including attorneys, CPAs, wealth managers, family businesses and other related parties. Why is behind this unfortunate trend?

    Too often, all the planning attention is placed on the family’s financial and real estate assets. There is nothing wrong with this but when there were dysfunctional family dynamics before inheritance, it is likely there will be dysfunctional family dynamics upon death. Neglected during the planning process, this dysfunction can lead to unintended consequences for family and business relationships. Most people passing on wealth do so with an expectation that their generosity will be received in the spirit it was intended. Without a proper amount of focus on family dynamics, succession inheritance can cause further damage to family relationships.

    Avoiding Wealth Destruction

    “If your wealth transfer plan is not done carefully, your wealth will be transferred… just not where you intended. It will end up being transferred, that’s for sure. It will be paid out as legal fees to law firms and other professional firms. In no time, millions of dollars can be wiped out in fees and settlements.

    AVOID WEALTH DESTRUCTION – CLICK HERE

    Contact me at 561-869-4500 or email me at TB@LifeCyclePlanners.com for a complementary consultation. Or, visit us at Facebook

    ted bernstein boca raton florida 

  • Must See TV – Tom Cruise and Jack Nicholson Discuss Life Insurance

    A Few Good Life Insurance Agents_3Revised0628 NICHOLSON

     

  • Power of Indexed Annuities

    Power of Indexed Annuities

    Indexed Annuities – The Facts:

    Using Fixed Indexed Annuities, insurance companies guarantee lifetime income for a critical part of your retirement plan. Annuities are not investments. Instead, they are contracts you enter with multi-billion dollar financial institutions that are regulated by 50 states. To maintain Triple A ratings, they are transparent to regulators and are considered to be extremely conservative. 

    • Insurance companies have higher reserve requirements than banks.
    • Insurance companies must comply with strict investment guidelines.
    • The 30-year bull market in bonds may be over. The Fed has said it will continue to raise interest rates, which is not good for bond owners, especially open-ended mutual fund bond owners. Now is a great time to protect gains and protect retirement assets with a principal protected, lifetime income solution.
    • The right annuities, fixed indexed ones, can participate in the some upside of the markets, without any downside risk. This allows you to participate in potential stock market growth without the anxiety from the roller coaster of stock market losses.
    • There are contracts with 100% liquidity from day one – a full return of premium if you want out for any reason. These are special contracts not offered by everyone.
    • When stock market returns are negative, your annuity is credited at zero percent. When the markets are positive again, you will participate in a portion of the upside. This is a tremendous benefit during down years and bear markets.
    • Annuities provide higher income payouts as you get older. The longer you wait, the higher your guaranteed payout will be.
    • Annuities can provide guaranteed income for both spouses. The guaranteed income may continue for as long as the surviving spouse is alive. The life expectancy for two lives is much longer. 
    • Some contracts DOUBLE the income payment for long term health care costs in the event you cannot perform two out of six Activities of Daily Living. 
    • Upon the owner’s death, any unused principal will be transferred to the beneficiaries. The amount of money you contribute, plus all gains credited to your contract, will pass to your heirs.

    Please contact me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about indexed annuities and your specific needs. You can visit us at www.facebook.com/lifecycleplanners

    ted bernstein boca raton
  • 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