Who needs life insurance?
The simple answer is anyone who has people that rely on their income, and cares about the well being of these people.
If you have a high net worth, then you should consider a life insurance policy to help pay estate tax upon death. This way, you could leave more money to your heirs. Life insurance costs pennies when compared to an estate tax bill.
Life insurance can also be used as an investment and offers tax benefits that most other investments don’t offer. So if you’ve maxed out your 401k or other tax deferred investments, you could consider using life insurance as an investment.
Now you can also buy life insurance for Living Benefits and not just death benefits!
The average consumer has no idea that even a low cost term insurance policy may be turned into a cash asset during his or her lifetime. This very powerful emerging trend in life insurance is the result of several developments including:
The Rise of the Life Settlement Industry – Most insurance prospects/policyholders don’t know that a life insurance policy, even term insurance that is still convertible, can be sold to a third party if the policy is no longer wanted or needed. While there is no guarantee that a life settlement transaction will be available, the possibility that one may be able to sell his/her policy to a third party and perhaps receive back all the premiums paid or more may make the initial decision to purchase life insurance easier.
Accelerated Death Benefit / Terminal Illness Riders – Most recently issued policies contain such a rider. It is not talked about enough. At the most critical, stress filled time in one’s life; you may be able to get cash from your life insurance policy to help solve a whole series of related financial issues many of which may not be covered by medical insurance.
Other Living Benefit Riders – At least a couple insurance companies are currently offering, free of charge in addition to the terminal illness rider, a Critical Illness rider and a Chronic Illness Rider. The Critical Illness Rider provides cash benefits at the onset of certain medical conditions such as heart attack, stroke, and invasive cancer. The Chronic Illness Rider provides cash benefits for the loss of two activities of daily living (ADL) similar to what a stand alone long term care policy might offer.
Conversion – While conversion is not new, the average insured has no idea that they have the ability to exchange their term insurance policy for a lifetime plan without health questions or medical examinations in the same rating classification for which they originally qualified.
All of the above benefit options are free. There is no additional cost beyond what you pay for the life insurance product to have access to this suite of living cash benefits. This provides so much value from the dollars spent for a life insurance policy that one could almost argue that buying life insurance with all these benefits is a “no brainer”.
Fortunately, you have many different life insurance options. There’s inexpensive term life insurance, Return of Premium term, guaranteed Universal Life which some people refer to as “term for life” or “term to 100”, then there’s other types of permanent life insurance like Indexed Universal Life, Whole Life and Variable Life.
There is a life insurance product that will fit everyone’s needs and budget, whether you want living benefits, death benefits or both.
So if You Need Life Insurance?
Please contact us if you’d like help in determining the best life insurance rate and product for you. Call us toll free at 1-800-380-3533, email us or run a quote request using the quoting tool to the right and check out lots of different rates and products available to you.