Poorly Understood,
Life Insurance Deserves A Place In Your Portfolio
Discover The Unique Strengths Of Life Insurance
While we pay insurance for many things that may never be required,
life insurance seems to be the most disliked. Unlike other kinds of
insurance, the insured will never see a monetary benefit (in term life),
so the main benefit for the insured is peace of mind.
Most people, especially encouraged by a variety of financial gurus,
opt for term insurance, also called "temporary" insurance.
Yet we believe that permanent, or "cash value" life insurance
has a vital place in wealth planning for anyone who has any amount of wealth.
There is much misunderstanding, among both advisors and the public at large --
so we have prepared this page so that you may become more familiar with the various
forms of life insurance policies. Then, as you put together plans for wealth building,
you can select and benefit from the most appropriate type of policy.
We have found that life insurance, in the correct circumstances and when combined
with other tools, can be an outstanding investment tool. What gives life insurance
such a wonderful quality? The same thing that gives Roth IRAs their magic --
the money grows tax free, and comes out tax free.
We've prepared pamphlets (below) on the various types of insurance policies, what they
are, how they are used, their pros and cons. We encourage you to read each of the pamphlets
below, which you can do by simply clicking on the link.
There are two primary types of term (or temporary) life insurance:
straight term life insurance, and "Return of Premium" Term Life Insurance.
You can read about each by clicking on the appropriate link below:
- Term Life Insurance
- Return of Premium Term Life Insurance
Permanent life insurance has a number of specific concepts unique to it.
You may be familiar with some or all of the terms, but we encourage you to
review the basic permanent life insurance concepts by clicking here.
Done getting familiar with the terms?
Okay, let's get started on the types of permanent life insurance by
clicking on the links below:
Reading the material above, you've no doubt discovered that another term
for permanent life insurance is "cash value" life insurance, because the policies
have a cash value that can be used by the insured -- not just a benefit that pays
off at death.
This cash value, when used for a wealth building strategy, can be used
effectively for retirement income. Thus, the permanent life insurance provides
multiple benefits -- not just a death benefit for protecting the family, but also
the possibility of using it for retirement. In addition, the versatility of these
tools can add flexibility in handling a variety of financial wrinkles rather
than just becoming "money down the drain."
Even if you can not yet afford the premiums for permanent life insurance, a
situation faced by many of our younger clients, we encourage you to take advantage
of the term life insurance policies that you can afford.
But we know that many clients who can afford the premiums have difficulty in
seeing the value of permanent life insurance. We recommend the "return of
premium" term life insurance policies for them.
We've found that equity-indexed life insurance policies provide the best
overall value for clients who wish to have minimum guarantees on the cash value
in their policies. These policies have upside potential and and a growth
rate pegged to the S&P 500 index. This type of policy provides both security
and reach for good growth.
Some types of equity indexed policy also have a free long-term care insurance
rider, and one in particular has its growth pegged to 140% of what the S&P 5000
returns.
Our clients have been able to find life insurance policies that work well
for them. We'd like to do the same for you. We welcome your call to discuss
various types of life insurance and how they fit into an overall plan of wealth
building, with no obligation to you. Just click here to contact us.
We look forward to your call.
Don't forget to check to
see if your state laws automatically asset protect life insurance policies and annuities.
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