Life Insurance

Why do people Buy Life Insurance ?

The #1 reason people buy life insurance is because they love someone.

After that they want to make sure that a dream is guaranteed to occur.

See below how Life Insurance can be Sexy!

Today some amazing products have been developed and they cost less than policies with less benefits would have cost you before 2000. This is primarily because life expectancy has increased over the years which gives the company more time to build the funds to pay the average claim. This is good for the consumer.

What types of Life insurance are there?

Term Insurance

Think of it as renting - The premium is only paid for a period of time (term) and if you stop paying premiums NO Claim will be paid.

This type of insurance is great for younger families with limited resources that need to cover a large need such as a college fund until the kids are gone.

Over 95% of all term plans never pay a claim because the premiums rise at each renewal and eventually are dropped becuase of that rising cost.

Whole Life Insurance

Just like it's name implies - it is designed to last your whole life.

The premium is level for life guaranteed in the contract. This actually makes it less of a burden to pay the premium as your income rises over the years.

There are some limited pay plans - Single Premium, 20-Pay Life, LIfe Paid up at 65

The limited pay plans guarantee that no future premiums will be paid once that limit premium stream is paid and the policy will stay in force for your lifetime.

Everyone should own enough Whole life insurance to cover the cost of a basic Automobile. This is becuase each time you purchase a car you can tell the salesman you don't need life insurance it is taken care of and when you eventually reach your end that same policy will be there to pay the cost of your final expenses (funeral, etc.)

Universal Life Insurance

Potentially the mose dangerouse life insurance to own.

Variable Universal Life should be avoided at any cost. The guarantees are tied to the stock market. Never put the greatest financial tool developed by man (life insurance) where it can be put at risk overnight by unforseen changes in the economy.

Regular Universal Life is OK if purchase after 2000 AND the guarantee period is set for ages past 95. Don't purchase based upon an illustration with current values illustrated more than 6% those larger interest rates are not realistic in any way.

There are some great plans on the market today but again be sure the illustrated interest rates are not unreal and the plan is guaranteed to an age of 95 or older. If you do not you may be purchasing a plan that will blow up before it is needed for it's intended purpose.

No matter the plan you purchase - look into plans that pay claims for catastrophic events or chonic illnesses not just death.

Life Insurance Can Be SEXY!

You are probably thinking this guys is nuts to think LIfe Insurance can be sexy.

I am not - I own Sexy Life Insurance.

There are great plans that allow one to put extra money into a very safe environment to grow and do amazing things.

Think of it this way -

The Insurance company determines the Minimum amount you must pay for a Life Insurance Plan - This is Term Insurance - enough to allow the company to guarantee that the claim will be paid and still make a profit.

The IRS determines the Maximum amount you can pay for a Life Insurance Plan - Just the fact that the IRS cares should tell you that something special is going to happen when you get close to that level. The IRS even has special rules if you pay more than they say you can pay for a plan.

Paying premium at a level near where the IRS begins to be interested is where LIfe Insurance is SEXY and since this is a family oriented site I ask that we talk about Sexy life insurance in a more private setting.

We should buy Life insurance to cover the following items:

- Replace income lost from Death, Disability, Chronic Illness, Critical Care

- Pay the Bills if we lose a provider of income due to death or Illness

- Mortgage and other debts

- Continuing the family dreams for the future

- caring for those left behind

- Paying for College

- Continuing the Fund for Retirement of the Survivor

- Paying for Funeral expenses and providing a little cash for emergencies.

- Business Continuation

- Other reasons too

Remember I can assist surviving family members with orderly settlement of the deceased's estate.

I try to present solutions in simple understandable terms with no tricky sales tactics.