Consumers are reluctant to buy Long Term Care policies. They have seen how the industry raised premiums unexpectedly on new and inforce policies. Other folks dislike the “use it or lose it” type of product, where the premiums paid will never be returned unless a claim is made.
If you have decided not purchase a LTC policy, you may want to consider a life insurance policy with a Chronic Illness Rider or Long Term Care Rider. Different riders, but similar goals: providing financial relief to policyholders hit with chronic illness expenses.Read More
The number of insurance companies offering Long Term Care policies has dropped dramatically in the last four years. Many of them increased premiums in order to account for high loss volume, causing consumers to stay away from the high premiums and “use it or lose it” design.Read More
What is a good vehicle to generate retirement income in this low interest rate environment? Believe it or not, maximum funded Life Insurance.
Kiplinger Magazine published an article in late October, 2016, “5 Ways Life Insurance can Pay Off before you Die.” The article says, “Life insurance can provide more than just a death benefit. I believe it’s an underutilized asset class, and its potential is especially important in today’s weak-interest- rate environment when it’s difficult to generate much of a return without taking risks.” The article goes on to say, “Some policies even allow access for long-term care needs.”
Chronic Illness and Long Term Care Riders appear to be catching on with consumers. The Life Insurance Market and Research Association (LIMRA) reports that new premium for individual life combination products increased 14 percent from the previous year. Chronic Illness riders grew 38 percent to comprise 59 percent of the the total combination product market.Read More
Unless you live under a rock, you should be aware that we have had years of low interest rates. But, if you own Universal or Whole Life insurance, you should also look into how they have been impacted.
When these policies were sold in the 1980’s and 90’s, agents were showing 8-10% crediting or dividend rates which many buyers did not understand.
Insurance companies had to eventually reduceRead More
One of the most common questions we hear form clients interested in purchasing life insurance, is whether or not to buy from a stock or mutual company. They offer similar products, but mutual companies have one overriding characteristic that benefits policyholders; they operate for the long term benefit of the policyholders. A stock company does the same, but for their shareholders.
At first glance, it may seem as though the products are priced similarly. They are. However, whether or not they maintain that pricing is dependent on little known clause inside the policy called cost of insurance or COI. Most consumers typically think that policy performance is based on the crediting rate of the cash values. What they don’t Read More
If you own a life insurance policy/ policies with cash values, one day, your advisor may tell you to look at a 1035 exchange. Sometimes, it can be a beautiful thing to do. But, there are also instances when a life insurance replacement does not make sense. As an example, you cannot qualify for it if your health is bad. But, what are some of the less obvious red flags you should be looking for?
Compare premiums carefully. The new one may have a lower premium, but if you need to pay it for a longer period of time, the net cost over your lifetime may be higher. Compare the projected number of years of payments to and beyond life expectancy.Read More
As an insurance advisor, I find myself getting more and more excited about Indexed Universal Life (IUL). It’s been around for a while, but recent industry changes have made it more competitive and attractive than before.
IUL offers policyholders a way to get death benefit protection by utilizing stock market based growth potential without the risk of directly participating in the stock market.
Policy cash value has the potential to grow based on the performance of a market index measured Read More
One of the most common questions we hear is, “How can a new policy be more cost effective than an older policy I locked in at a lower age?”
Yes, that old policy was locked in at a younger age and perhaps at “Super Preferred”rates. But, the insurance company pools you in a group with other healthy people, the same gender, age, andRead More
Have you ever wondered how the cash value benefits you or your family? Chances are, it does not and never will.
First, if you take it out while you are alive, the policy could terminate early. Worse, when the cash value drops to zero, the policy will terminate.Read More