“Living Benefits”
What is wrong with life insurance?
Traditional life insurance has the drawback of covering only 1 emergency – your passing away. And with term insurance, the vast majority of policies will never be paid because they are outlived. But the leading causes of death in America are also the primary causes of disability, the need for long term care, and ultimately most cases of financial struggle.
Every 29 seconds someone suffers from a coronary event, and 45% of heart attack victims are under the age of 45.
Every 45 seconds someone suffers from a stroke.
The chance of developing cancer during your lifetime is 1 in 3 for women, and 1 in 2 for men.
Of all Americans who reach age 65, about 60% will eventually need some form of long term care.
There are so many challenges a family faces long before the worst possibility of losing a loved one. What is wrong with life insurance is that it doesn’t address all these risks.
What is wrong with disability insurance and long term care insurance?
Disability insurance is very important for the breadwinner of the family to have, for how many months can your family live without that income? And yet, disability insurance will never pay the full amount of the income, and often comes with waiting periods.
Long term care insurance is another valuable protection, because the costs of long term care are so high that it protects your assets from being depleted in the event you need this care. However, many people hesitate to get it because they don’t know for sure that they’ll use it. Or what if you have a heart attack or stroke, but recover enough that you do not trigger the long term care because you can still perform the activities of daily living?
A Comprehensive Solution
The solution to these shortcomings of traditional, separate insurance policies is to get one policy that will provide “Living Benefits” as well as death benefits.
It is now possible to get such a policy through a 150-year-old, A-rated mutual company. The one policy will pay in three ways:
· Acceleratd living benefits
· Retirement income benefit
· Death benefit.
We can design a policy to cover disability, chronic and terminal illness, and long term care. In addition, you will be able to access the value for retirement or other needs.
We all have multiple risks to insure against, and it is hard to know which one we will need first. A “Living Benefits” life insurance policy provides one combined, affordable solution to all of these needs.
Showing posts with label disability. Show all posts
Showing posts with label disability. Show all posts
Thursday, October 29, 2009
Thursday, September 24, 2009
How Life Insurance Can Save your Business
A Casual Request
We were sitting in the second floor office, overlooking the water, discussing the company’s commercial insurance. At the end of a productive discussion, the one business partner said, “Oh, by the way, we are also going to need some key man insurance.”
The Surprising History
At the next visit, we learned that there had been three founding partners, and one of them had a sudden heart attack in his mid-fifties. The other two partners had to set up a payment plan to buy out the survivors of the deceased partner. As it turns out, they are still paying large amounts of money every quarter. “We have had a buy-sell agreement from the beginning,” they said. “And as you can see, we have had to use it. That determined how much each partner’s share of the company was worth. But now we want to fund it with life insurance, so it doesn’t become a huge operating expense.”
The Solution
They are now setting up cross-purchase life insurance to fund their buy-sell agreement. Each partner is the owner of a life insurance policy on the other one. If one partner were to die, the other would receive the death benefit, and would have to use that to buy out the family or estate of his partner. He would then own the business, and it could survive.
Final Piecees of the Puzzle
As it turns out, they decided to purchase key man and disability insurance as well. Key man insurance is a life policy taken out by the company on a key employee to help the company continue with normal operations in the event of their passing away. And disability is the most common cause of businesses and families alike running into serious trouble.
A Common Sense Investment in the Business
Life insurance is the most economical way to ensure a business can continue operating smoothly in the event that something happens to a key employee or partner. It is a small investment in the security and stability of a company, and to future thinking businessmen like my clients, it just makes sense.
We were sitting in the second floor office, overlooking the water, discussing the company’s commercial insurance. At the end of a productive discussion, the one business partner said, “Oh, by the way, we are also going to need some key man insurance.”
The Surprising History
At the next visit, we learned that there had been three founding partners, and one of them had a sudden heart attack in his mid-fifties. The other two partners had to set up a payment plan to buy out the survivors of the deceased partner. As it turns out, they are still paying large amounts of money every quarter. “We have had a buy-sell agreement from the beginning,” they said. “And as you can see, we have had to use it. That determined how much each partner’s share of the company was worth. But now we want to fund it with life insurance, so it doesn’t become a huge operating expense.”
The Solution
They are now setting up cross-purchase life insurance to fund their buy-sell agreement. Each partner is the owner of a life insurance policy on the other one. If one partner were to die, the other would receive the death benefit, and would have to use that to buy out the family or estate of his partner. He would then own the business, and it could survive.
Final Piecees of the Puzzle
As it turns out, they decided to purchase key man and disability insurance as well. Key man insurance is a life policy taken out by the company on a key employee to help the company continue with normal operations in the event of their passing away. And disability is the most common cause of businesses and families alike running into serious trouble.
A Common Sense Investment in the Business
Life insurance is the most economical way to ensure a business can continue operating smoothly in the event that something happens to a key employee or partner. It is a small investment in the security and stability of a company, and to future thinking businessmen like my clients, it just makes sense.
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