By Life Quotes, Inc. Staff
Most people buy life insurance to ensure their loved ones are protected financially in the event of their death. But people don’t often realize that although paying funeral expenses and replacing income are two very important reasons to purchase a life insurance policy — you can also use life insurance to pay for a home, plan for retirement or prevent tax penalties when you transfer an estate.
Whatever your situation, it’s important to know which policy fits your particular needs and those of the people you love. The Life and Health Insurance Foundation for Education, a non-profit consumer insurance education organization, offers these tips for buying life insurance.
Consider those who rely on you financially, including your spouse; children, parents or other loved ones. You should periodically re-evaluate your insurance needs whenever there is major life change, such as getting divorced, buying a home, or changing jobs.
]]>
“A life insurance policy should be reviewed when there are major times for financial change in your life,” suggests Jack Dewald, Chair-elect for the Life Foundation. “Even if there hasn’t been any major changes in your life, you should reevaluate every five to seven years to see what you have and what you need and what you don’t need anymore.”
How much is enough?Ask yourself how much money your family will need to cover living expenses and how much they will need over the long-term to maintain their standard of living. The Life Foundation provides an interactive calculator at www.lifehappens.org/lifecalculator to help you estimate your needs.
Does it fit your needs and your budget?Research term and permanent policies to figure out what kind of life insurance is right for you.
Find an expert that can explain the different types of life insurance available. You can find an insurance agent through referrals from someone you trust such as friends and family.
Have your agent or broker put together a life insurance needs analysis. A needs analysis is a personalized illustration of your current and future financial needs. The worksheet would include: Income needs, expenses, existing assets and insurance, new insurance amount needed, rate of return flowchart, summary of rates of return, a comparison between rates of return upon death, annual rates of return by age, assumptions or client and insurance policy information.
Research the insurance company or the broker you plan to work with to determine its financial stability.You can check out an insurance company’s financial strength rating at A.M. Best, Fitch, Moody’s and Standard & Poor’s websites.
Investing in life insurance can be an important asset in your investment portfolio.
Video Rating: 4 / 5
Buy Term and LOSE the Difference! Whole Life = no market risk? 5% return? tax deferred build up? tax free withdrawal? Zero net cost loans? Self completes if you become disabled? Lawsuit and creditor protected in 43 states? tax free death benefit? No 591/2 rule on distributions? No RMDs? No contribution limits? And people say this is a bad product? Really? The truth be told it very well may be the best financial product you can own!!!
Buy Term and LOSE the Difference! Whole Life = no market risk? 5% return? tax deferred build up? tax free withdrawal? Zero net cost loans? Self completes if you become disabled? Lawsuit and creditor protected in 43 states? tax free death benefit? No 591/2 rule on distributions? No RMDs? No contribution limits? And people say this is a bad product? Really? The truth be told it very well may be the best financial product you can own!!!
Buy Term and LOSE the Difference! Whole Life = no market risk? 5% return? tax deferred build up? tax free withdrawal? Zero net cost loans? Self completes if you become disabled? Lawsuit and creditor protected in 43 states? tax free death benefit? No 591/2 rule on distributions? No RMDs? No contribution limits? And people say this is a bad product? Really? The truth be told it very well may be the best financial product you can own!!!
no market risk? 5% return? tax deferred build up? tax free withdrawal? Zero net cost loans? Self completes if you become disabled? Lawsuit and creditor protected in 43 states? tax free death benefit? No 591/2 rule on distributions? No RMDs? No contribution limits? And people say this is a bad product? Really? The truth be told it very well may be the best financial product you can own!!!
@cinematic86 Check out my profile and note that it shows that I joined YT on February 17th, 2011. Now check out the profile of the trash value agent who‘s imitating me (until he figures out that he goofed up again and decides to hide it.) It shows that he joined on August 31st 2011. I‘ve had this profile over 8 months before him. Another example of the level of honesty and integrity in the pathetic trash value industry.
@cinematic86 Notice the level of integrity displayed by trash value insurance agents. This clown uses a lower case “L” in his user name instead of a 1 (one) so he can impersonate me. Why? Because these trash value insurance agents use the same level of integrity on YT that they do with the public. This is why they have so many complaints and lawsuits launched against them. He can’t defend trash value policies or the practices of trash value agents, so he resorts to this.
@cinematic86 5% tax free with NO MARKET risk sounds like a great deal to me, plus funding self complete in event of disability, the assets are protected against lawsuit and creditors in 43 states, the money is accessed tax free and the loan rates on these policies are zero net cost – your 6 to 12% quote is a fabrication and a complete lie – it’s stated clearly in all policies so stop it. This video is great, all my clients see it.
Look at these two morons “You make 4%-5% returns” You assholes, what about your interests you charge the client every year on their money? Who the hell will invest in your trash value life insurance and get it back as a loan on interest?? (generally charging 6%-12%) Dont even start with me on your surrender charge BS and you suckers keep the clients cash value/savings upon the death of the insured and only pay the death benefit. Bloodsuckers!!LIARS!! LETS GO PFS! PFS! PFS!
Cash value life insurance isn’t a great investment, it’s a rip-off. The agent wins, the client loses.
If they pay more than the minimum in their Universal Life policy, money accumulates in the side fund until the cost of the insurance exceeds the premium. The difference is then drawn from the side fund until there’s nothing left and the policy implodes.
Universal life: Where the insurance portion is a yearly renewable Term or a level Term usually renewing in less than 10 years. All the fees, charges, taxes, etc. are on the insurance portion, so if a client pays the minimum, they have the worlds most expensive Term policy – and their premium will rise over time. Yes – rising premiums in a “permanent” insurance policy.
Whole Life where: they keep your saving for the first 2-5 years or longer. Where, when money does accumulate it’s at 1-4% at best (negative savings when you factor in the 2-5+ years they keep your money.) Where, if you want to access your own money, you have to take out a policy loan at 6-8% interest. Where if you die, they keep your “savings” and deduct any outstanding loans from the death benefit. Source – the actual policies themselves.
@theleonbillion ok i take that back, this video AND CNBC IS EPIC IN IT’S FAIL
this video is EPIC FAIL
I totally agree with Life Insurance to be the best way to protect you and invest. Check with your agent, they have great plans !
@SuperLifeguy that’s why they provide you renewable term
@zylamediagroup: Good one. UL self implodes. My favorite thing to own. Not!!!
I agree. I can show you how insurance in your portfolio can increase your expected rate of return and decrease standard deviation.
@bassy21 Yep. I agree.
@jgilles85
that is a ridiculous arguement… term insurance is level and those interested in retirement will not be interested in term because they would then invest in stock, bonds , mutual funds…. and then there is no guarantee..
the Indexed UL is guarantee of tax free retirement…. term will expire assuming you saved money and your investments worked
@jgilles85
they do not get the cash value… your Beneficiary will only receive the death benefit… the cash value is only when you surrender the policy… if you wait until retirement like smart people you will receive a monthly income in the amount specified by the policy… mines will get provide 80k tax free at retirement forever and when I die no matter when even after 100 my family will receive a death benefit of 600k
yes he is talking about UIL he is just not being real specific…. he is not talking about Whole Life
yes he is talking about UIL he is just not being real specific….
Bassy21, r u referencing the video ? If so, he is NOT talking about Index UL, he is talking about WL, preferably with a Mutual Ins Company.
He’s not talking about old school Life Insurance. He is talking about Index Universal Life.