Tag Archives: life insurance

Reviewing the modern-day insurance industry

3-bottom, Citizen Journalism, Finances, Senior Living, ,

By Dave Stanley
Integrity Financial Service, LLC

(Pxhere.com)

There is an old saying about life insurance: “you buy life insurance because you either owe someone or you love someone.”

The life insurance industry has changed, with the introduction of the internet, access to information has increase as well as the options to acquire it and manage it. For many people life insurance is just a commodity and frankly it is until….. until the insured dies. Then it becomes a lifeline to security, income and family continuation.

Working with a licensed and authorized insurance agent can help you decipher the insurance road.  Still many people want to look behind the hood for themselves.  If you are one of those people, here are some tips.

Shop around and compare quotes from multiple insurers. Different insurers may have different rates for the same coverage, so it’s important to compare quotes from multiple companies to find the best deal.

  1. Consider term life insurance. Term life insurance is generally less expensive than permanent life insurance, such as whole life or universal life. With term life insurance, you pay a premium for a specific period of time (the “term”), such as 10 or 20 years. If you pass away during the term, your beneficiaries will receive a death benefit. If you outlive the term, the policy will expire, and you will no longer be covered.
  2. But, term insurance is like renting, you only can keep it for a specific period of time. Permanent (whole life) insurance will protect you for your entire life.
  3. Consider your coverage needs. The amount of coverage you need will affect the cost of your policy. Determine how much coverage you need based on your financial goals and the needs of your beneficiaries, and choose a policy that provides the right amount of coverage at a price you can afford.
  4. Consider your health. Insurers will consider your health when determining the premium for your policy. If you have good health, you may be able to qualify for lower premiums.
  5. Consider your lifestyle. Insurers may consider factors such as your occupation, hobbies, and whether you smoke when determining the premium for your policy. If you have a high-risk occupation or engage in risky hobbies, you may pay more for life insurance. If you smoke, you may also pay more for life insurance.
  6. Considering working with an independent insurance agent. An independent insurance agent can help you compare quotes from multiple insurers and find a policy that fits your needs and budget.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

A life insurance policy is an asset you can sell

3-bottom, Citizen Journalism, Finances, Local Business,

By Dave Stanely
WKTV Contributor
Integrity Financial Services LLC

(Pxhere.com)

Did you know that you have a valuable asset that is often overlooked and may not be included in conversations regarding your financial portfolio?  It’s your life insurance policy. Many people are not aware that a life insurance policy is an asset that can be sold with some of the terms being set by the owner.

  

All too often, life insurance owners surrender their policy to the insurance company instead of getting a quote in the “secondary” market for what it’s actually worth. The market value of a life policy can be as much as eight times more than the surrender value. If you have a life policy that is unwanted, unneeded, or has become unaffordable, you can get a quote for the cash value in the open market.  Typically, you will have several choices as to the disposition of your policy.

  

One option is to settle for an all-cash offer and surrender any and all ownership of the policy. Another option is to take a reduced death benefit with a partial cash payout and never pay another premium.  This is the equivalent of owning a “paid-up policy” for a reduced death benefit which will still be paid to your beneficiary upon the death of the insured.

  

Older retirees can sometimes find themselves in need of a lump sum of cash later in life due to health circumstances (i.e., long-term care expenses), divorce, or even debt. These are some of the primary reasons why seniors opt to sell their policy and use the money for these needs. It’s your cash and can be used for any purpose. Other examples include investing the cash to generate monthly income, paying for college expenses of grandchildren, or perhaps funding a long-desired family vacation.

   

One other point to make about selling a life insurance policy in this manner is that this type of sale is not a “viatical settlement.” You may have heard this phrase before but not fully understood its meaning. A viatical settlement is where a person with a terminal illness sells their life insurance policy for less than its mature value to benefit from the proceeds (cash) while the insured is still alive. You do not need to be terminally ill to sell your life insurance policy in the open market. However, it is true that if you have impaired health or you are in your mid to late 80s or 90s, your policy can be worth more due to these factors. However, it is not necessary to be ill to take advantage of selling one or more of your life insurance policies. Do yourself a huge favor, get a quote from a qualified insurance agent, and know your options and the value of your policy before you surrender it to the life insurance company.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management