The Keys To Success

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.

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. 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 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. Not only can you make monthly payments to your plan, but you are allowed to increase payments as you

would with a 401K plan.

There are 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 - 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 –

prices are determined by height/weight chart measurements. Expect to pay more if you exceed or fall 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 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 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, call the life

insurance company and ask what the price would be to keep the policy active. The biggest advantage except for lower

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 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 alternative for

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 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,

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 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 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, you as 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.

Buy your life insurance from the expert Meyer Bendavid – Your Personal Coach