Life Insurance
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.
To Learn more about life insurance, review the following:
Term Life Insurance
Term means terminate.
The periods of coverage are from 10 to 30 years.
Policies expire a month and a day
after the time period of the policy.
If you need more insurance you have two options:
Before expiration acquire another term policy, at your current age with a new medical exam, or you can convert your policy to a cash policy,
at your current age without a medical exam.
Cash Value Life Insurance
Life insurance is also an excellent savings tool.
With the ultimate method
of savings
for a long-term goal, you have:
Preservation of premium and future profit.
Full control of your money
with the capability of accessing it any time
without penalties or restrictions.
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 more money away
than a 401k plan.
No required distribution.
A way to calculate
a break even strategy against inflation.
A way 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 device.
You can you make monthly payments
to your plan, and you can increase payments
as you would with a 401K plan.
The two major types of
Cash Value life insurance policies are Fixed and Variable:
Fixed
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 and Poor’s 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 insurance
for
your policy are determined by
the following factors:
Age - the younger you are the less expensive.
Male/female - the cost is less expensive for females.
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 – prices determined
by height/weight chart measurements.
Expect to pay more if you exceed
or fall below the norm.
If you smoke and decide to quit,
have the price of the life policy reduced
by getting a letter from your doctor. Insurance company requires 3 years
of 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,
provided you don’t surrender the policy.
The borrowed money
does not have to be paid back. The death benefit
would be reduced
by the amount borrowed.
An example of a life insurance policy
When calculating life insurance prices,
the companies use pricing to age 121.
I would suggest getting quotes for males
-- to age 84, and females-- to age 87.
The policies would expire at those dates,
before expiring,
call the life insurance company and get the price to keep the policy active
without any required 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.,
If you find that the payments
need to be skipped entirely,
the policy would continue,providing there is enough cash accumulation
in the policy to keep it active.
The maximum allowed by the insurance companies
is a calculation
based on the age of the policyholder
and the 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
alternativefor someone who might
otherwise not qualify 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 surrendering the entire policy.
You can reduce your death benefit
to the lowest amount
as determined by the insurance company
and pay for the policy.
Since the policy is not surrendered,
the remaining cash 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, so it 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 and urine tested,
your weight checked,
some questions asked, and
on occasion, an EKG taken.
The amount of time before a policy is issued
averages 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
by having the death benefit increase yearly;
the second,
to increase the calculation for over 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, the policy owner can request
from the insurance company
that the death benefit option be changed from an increasing death benefit
to a level death benefit.
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 your 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. Before the 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 penalties.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. For more information
about these
three plans,
or any questions, please call or send an e-mail.
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"Money Management"
by
Meyer Bendavid Your Personal Coach
CA license # 0B89248

In 1987 I established myself as a licensed
full-service broker working with Dean Witter,
Financial West Group, and National Planning Corporation.
I specialized in mutual funds, stocks, bonds, annuities,
life and health insurance.
As a money manager, I was responsible for assisting my
client’s with purchasing securities that conformed to their
risk level and helping them meet their financial goals
toward retirement.
In 2003 I decided to consolidate my business and work as
an independent agent. I have been assigned to the
largest service company in the United States and have been
selling life insurance and annuities
My specialty is life insurance.
I am the author of
"The Easy Way to Tax-Free Saving,"
"Money Management -
How to Protect your Money from Loss,"
"Thinking Outside the Box"
--------------------------------------------------------------
Information about the books
"The Easy Way to Tax-Free Savings"
A common complaint is
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The problem we all face over the years
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What happens if you become disabled
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How would your lifestyle change if you were
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Are you expecting
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Just look at all the mistakes
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Think of all the money wasted or thrown away.
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-----------------------------------------------------------
"Money Management -
How to Protect your Money from Loss"
The banks and brokerage houses
only watch your money,
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If you lost money in your saving plans,
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Children learn their saving ideas
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Money management
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Lost money takes years to recover
verses five minute phone calls
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This system will work
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View the Report ---> REPORT
----------------------------------------------
"Thinking Outside the Box"
In today's society with
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uncertainty
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The books come in a PDF format on a CD
Special offer -- $10.00
Checks, money orders, or COD accepted
-- Please call or send e-mail for your order
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