07/25/2019
Life Insurance information everyone needs to understand and most don't.
If something you thought to be true turned out not to be true when would you want to know it?
If you don't have life insurance or the right type of life insurance you better read this.
It's not something any of us like to think about or plan for. But when the worst happens, it's essential to know your family and loved ones are covered financially. That's why it's essential to have life insurance. A good life insurance policy can help cover the cost of a mortgage, childcare costs and safeguard your family from inheriting any debts you might have.
But the sad truth is, a shocking number of Americans do not have a life insurance policy or the right type of insurance and their family is at financial risk if the worst should happen.
Term insurance is the most inexpensive and maybe ideal for many needs and circumstances, but it is temporary insurance. Also, there is a new kind of life insurance with Living Benefits covering critical, chronic and terminal illness. If your term insurance doesn't offer Living Benefits you might want to explore affordable replacement. It is life Insurance you don't have to die to use.
For seniors, term insurance might expire before they do leaving family members facing the burden of funeral and final expenses. Permanent insurance, known as whole life protection, seems best for seniors. They want a policy with level premiums that can never increase and coverage that can never be cancelled at any age, plus one that builds cash value.
Many folks bought Universal Life Insurance Policies years ago when interest rates were higher and their life insurance agent set a planned premium that was too low. Now in their latter years the cost of their coverage is going up every single year and their investment fund cash value in their policy is being rapidly eroded. Some find their policies are now at risk of lapsing because their premiums being paid and remaining investment fund can't support maintaining the insurance. Properly structured with the right planned premium a Universal Life policy might be a good choice for many and has certain unique features and benefits.
Employer offered life insurance is great and take full advantage of it, but it might not be convertable to a personal policy when leaving the company. Even if you can take your employer coverage with you the premiums may increase significantly. Some of those policies will automatically decrease coverage or terminate at certain ages leaving folks financially exposed. It is best to have a protection policy you own and control. Get it while still healthy and as soon as possible as the cost will go up each year of age.
Lastly, there are whole life protection policies for those folks with current major health issues called "Modified" policies. It means you are covered from day one for accidental death, but have to live 24 months before coverage for natural causes pays the full death benefit. Natural death before 24 months generates only a return of all preiums paid plus 10%, not the face amount. Many current and past health issues may not disqualify you for Level Benefit day 1 coverage protection. Don't assume a health condition(s) means you have to purchase a Guaranteed Issue Modified policy. You may be eligible for a less expensive policy with day 1 coverage.
I am happy to do a no cost evaluation of your protection needs and provide a review of your insurance policies currently in place. Many folks are surprised to learn the type of coverage and terms of their current insurance are different than what they thought. Devil is in the details. Don't assume as it is better to know it now rather than later.
