Life Insurance: Thoughts, Important Things To Understand About The Product & Talking Points 

  • Most people put off buying life insurance because they don’t know how much to buy and they believe it is more expensive than it really is.
  • Upon the death of  a primary wage earner most families end up having financial difficulty within 3 months because they either did not have life insurance or not enough of it.
  • Carriers offer policies with minimal underwriting if your generally under 40 years of age  and apply for a face value within the guidelines allowed.
  • Life insurance could help you leave a legacy in addition to paying for final expenses.
  • Death benefit proceeds to he beneficiary are not taxable.
  • A great vehicle to fund a buy sell agreement between business partners. It allows the business to purchase the share of the business the decedent owned from the surviving heirs.
  • A great vehicle to provide incentive to a key employee  to keep an employee from leaving your employment because he now has a vested interest in remaining with the company.
  • Term insurance is the most the affordable type of life insurance, but only provides a death benefit.
  • Term insurance can be purchased in varying renewable terms ranging from 1 yr annually renewable to 30 year guaranteed level premium plans.
  • GUL or Guaranteed Universal Life is typically a better option than term life. The policy is guaranteed to run to typically 100 to 120 years of age as long as you pay your premiums. Some will accumulate cash value.
  • If your looking for a policy that will build cash, whole life is a great product but keep in mind the premiums are higher.
  • Policies today offer more than only a death benefit. The living benefits such as terminal illness riders, where a portion of the face value on the policy can be used for nursing home and or home car. We recommend carriers that offer these benefits in their standard contract.
  • It is better to purchase a policy while you are young, even if your single. The premiums are much more affordable and in most cases your health is better. Being a smoker will increase your premiums regardless of age.
  • You can qualify for life insurance today even if your not healthy. If you had or have a medical condition don’t assume you cannot get life insurance. The carriers are much more willing to taking on medical risks that were taboo years ago.
  • If you require a paramed exam, blood and urine samples these are done / scheduled at your convenience and performed typically in your home. You can have it done basically where your most comfortable and on your schedule.
  • If you purchase a face amount within the carriers guidelines a lot of companies, if you are in good health will take a phone app with the agent and client at the life insurance appointment.
  • It is in your best interest to bind the application with the first months premium. The reason is you put the carrier on the hook for the entire death benefit while its in underwriting. This of course assumes that the application has no material misrepresentations.
  • Life insurance is a valuable and important part of any financial plan. It not only plays for final expenses but it affords the ones you love the financial backing to continue to live out their lives as they are accustomed to. There is no need to sell your home, car, sell an interest / ownership in a busines,  liquidate assets etc. if you don’t have a family or someone close to you, then you may have a charity or other organization you are fond of to leave the proceeds to.
  • Can be used to provide an executive bonus. There are tax advantages to this type of transaction. You should consult your tax advisor about the advantages before you set up an executive bonus plan.
  • Children can use the proceeds / death benefit to cover the estate taxes upon the death of the second parent. This enables children to liquidate less or not have to liquidate assets at all if a policy were in place. The premium is generally not as expensive  as paying the estate taxes with your assets. For example it may be $3,000 a year for 20 years for $1,000,000 in life insurance compared to liquidating $1,000,000 of your hard earned assets to pay the government . Your family would have that $1,000,000 tax free before selling assets or using your life savings to cover the tax consequences.

About FuscoInsuranceAgency

Independent Insurance Broker - Personal & Business Insurance, Life, Health, Retirement, Benefits, Bonds Gold & Silver Bullion & Coins Advisor / Sales President of Fusco Insurance Agency, Inc. Providing Solutions For Your Insurance & Retirement Needs! Licensed in NY NJ CT PA MD NC SC TX & FL E Mail: Toll Free: (866) 983-8726 Fax (866) 299 - 7990
This entry was posted in Insurance & Financial Planning, Life Insurance - Staten Island (Term Life, Universal Life, Whole Life, Final Expense, Guaranteed Issue), Life Insurance: Thoughts, Important Things To Understand About The Product & Talking Points and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s