Life Insurance should be part of your
portfolio. Your loved ones
will have peace of mind knowing
your life insurance coverage will keep them
in the life style they are
used to living.
Buy your life insurance from the
expert. Meyer Bendavid
CA Life insurance license 0B89248 --- 8 companies- Offering excellent service and the lowest prices.
American General (AIG), Banner Life, Genworth (FLC), Genworth Life,
Lincoln Benefit, North American, Protective Life, and Prudential.
The following information is what you should know before you purchase your life insurance.
Term Life Insurance
Term means terminate. The periods of
coverage are from 10 to 30 years.
a month and a day
time period of the policy. If
you need more insurance
you have two options: Before expiration
policy, at your current age
with a new medical exam, or you can convert your policy
to a cash policy,
current age without a medical exam.
Cash Value Life Insurance
Life insurance is an excellent savings tool
with the ultimate method of savings
for a long-term goal, you have:
Preservation of premium and future
Full control of your money with the
capability of accessing it any time without penalties
A TAX-FREE savings of 10 to 35 cents for
every dollar saved.
Money compound with a long-term record of beating
inflation. A way of saving from
ages 0 to 90. The capability to have a savings
for college. The capability to put
away than a 401k plan. No required
distribution. A way to calculate a break even strategy
to safeguard a business. A way to protect a legacy from estate tax.
Cash Value Life insurance is the best
method to accumulate money for your retirement.
This is a long-term savings
only can you make monthly payments to your plan,
but you are allowed to increase payments as
would with a 401K plan.
There are two major types of Cash Value
life insurance policies are
Fixed and Variable:
These policies will preserve your premiums
and future profit. There are
two types of fixed
life policies. The first uses
the current interest rate. The second uses the Standard
500 or NASDAQ Index.
Variable Life Policies
A Variable life policy uses mutual funds
for the cash accumulation. The
premium and future
profit will fluctuate.
Variable life insurance does not preserve
the premium and future profit.
The calculations for the cost of life
for your policy are
the following factors:
Age - the younger
you are the less expensive. Male/female -
females are cheaper than males. Smoke/non-smoker –
the cost for smokers is about three times the average price for
non-smokers. Medical condition – expect to pay more
for any type of
medical condition. Medication –
expect to pay more if you take medication. Height and weight –
determined by height/weight chart measurements. Expect to pay more if you exceed
below the norms.
If you smoke and
decide to quit, you could have the price of the
life policy reduced by getting a
letter from your doctor.
Insurance company requires 3 years
non-smoking to reduce the price. If you are
overweight, but reduce to meet the
life insurance standards of
height/weight, the insurance
company will lower the price
of your policy with a note
from your doctor.
Can You Borrow Money?
In case of an emergency, the owner of the
policy, (that could be you or someone else)
can borrow the money TAX-FREE,
don’t surrender the policy.
The borrowed money does not have to be paid
back. The death benefit would
be reduced by the
An example of a life insurance
When calculating life insurance prices, the
life companies use pricing to age 120.
I would suggest getting quotes for males
to age 84, and females-- to age 87.
The policies would expire at those dates,
but before that happens,
insurance company and ask what the price would be to keep the policy active.
The biggest advantage except
prices, is no
requirement for any medical exams. Universal Life cash policies offer pricing
from a minimum payment to
a maximum payment.
The minimum payment could keep the policy
active for a long period of time,
which would be
helpful in the event of an
emergency. If you find that
the payments need
to be skipped entirely, the policy would continue,
providing there is enough
accumulation in the policy to keep it active. The maximum allowed by the
companies is a calculation based on the age of the policyholder and
dollar amount of the death benefit of the policy.
Ownership of the policy
A minor cannot be the owner of a life
insurance policy. The owner
controls the policy
and makes all the decisions
concerning beneficiaries, cash accumulation, borrowing money,
and surrendering the policy. The owner or beneficiary
of the policy
could be the parent,
grandparents or anyone of a legal age (it is different
in each state). The owner of a
child’s policy does not have to give up the policy or the cash accumulation even when
the child reaches
the legal age as
determined by the state law. For this reason, obtaining
a child’s life
insurance policy can be a great alternative for
someone who might otherwise
because of some medical or a declined condition.
A child’s policy can either
be a great
savings tool for the owner’s future needs or a generous
legacy for a son or daughter.
Borrowing money from your policy
The owner can borrow about 90 percent of
the surrender value. If
payments are made,
the policy will continue to
produce a cash accumulation for
future needs. The amount
borrowed would be subtracted from the death benefit.
Don’t Surrender the Policy
If you purchase a policy and later decide
you don’t need it or can’t afford the premiums,
there’s an option beyond
entire policy. You can reduce
your death benefit
to the lowest amount as determined by the insurance
pay for the policy.
policy is not surrendered, the remaining cash accumulation can be taken.
Options for life insurance
There are life insurance companies that
will issue policies without a medical exam;
however, the premiums are too high,
behooves you to go through the process.
The life insurance exams only take about
one-half hour, they’re free,
and the insurance
medical examiner will
usually come to any location specified. Expect to have your blood
your weight checked, some
questions asked, and on occasion, an EKG taken.
The amount of time before a policy
issued averages from one to two months.
Life insurance premiums are flexible.
There are two reasons for using the
increased death benefit option. The first is to offset inflation
benefit increase yearly; the second, to increase the calculation for
funding. There is a price
to pay for the increased
death benefit, and that is the cost of the
insurance. If there is a need
to increase the cash accumulation after about
20 years, you
as the policy owner can request from
the insurance company that the
death benefit option
from an increasing death benefit to a level
Another option you have
available to you is to discontinue your payments after 20 years. Providing you don’t have any
withdrawals, your policy should continue creating cash. You also have the option of lowering
payments back to
the minimum. Instead of selecting an increasing death
benefit, you have
the option of one that remains level. You can
pay the minimum for a shorter
period of time.
policy expires, call the insurance company to find out how
much more money it would
cost to keep
the policy active. Another
medical exam would not be required for this option.
Life insurance policies should be evaluated
yearly. Prices have dropped because people
are living longer.
I can exchange your older policy for a new
one by using a 1035 exchange without incurring any financial
The money exchanged
into your new policy
should lower your premium.
If you own a business, there are three life
insurance business plans
The Business 162 Plan, Key Person
Insurance, and Split-Dollar
Insurance for Businesses.
Buy your life insurance from the
expert Meyer Bendavid – Your