If you don't know who Yul Brynner is, look up the classic "Westworld" or the musical "The King and I". He died from lung cancer in 1985. This is his message to anyone who smokes. Please heed his warning.
Too often, most families and businesses overlook life insurance beneficiary designations.
Please note I stated designations, not the beneficiaries themselves!
One consideration that can be easily used are Trusts. You do not have to be wealthy to put in a basic trust. One type of trust could be an Irrevocable Life Insurance Trust (ILIT). Here is how it works:
The insured, being the grantor, would gift the required premiums each year to the ILIT. The insured has no ownership in the life insurance policy.
Then, a person who ideally can be held without any financial interest to the ILIT, is named the trustee.
The ILIT is particularly valuable when the life insurance policy could be pierced by the government as a source of funds, such as long term health expenses. It can also help young beneficiaries to receive much needed funds for their support and education. Also, an ILIT can help reduce estate taxes because it is not in the insured's estate.
There are other valuable trusts that can be set up, with the help of a qualified family/estate attorney.
Please contact my office and we can approach your specific needs.
You’re never too old to think about your future, along with your loved ones. Don’t be afraid to take the next step and prepare yourself!
Are you thinking that life insurance isn’t important for your oncoming future? Jamie Hopkins, a professor of retirement at The American College, has different ideas. The following article was published in Forbes Magazine to prove the importance of life insurance and how purchasing life insurance will benefit you when the unexpected comes knocking. Take a read!
Most quality term life insurance policies will have several options to convert to a permanent policy.
It is important to know, when you are issued a term life policy, what that company could offer you at that time. Policies may change in the future due to federal and state regulations, company policy types and forms, but policies that offer only one or no options is a tell tale sign for you to avoid!
When converting a term life insurance policy, these are the main things to consider:
- What can you afford based on income, other savings and liquid assets?
- Can some assets be used to fund premiums paid up front, without affecting your lifestyle?
- How long do you want coverage to remain in effect?
- What is your goal - the amount needed to cover future obligations, such as mortgage, business opportunities, funerals, or family income needs?
- Is a spouse or family member on your term policy? If so, discover other options for them as well.
The process to convert your policy will be much easier than creating a brand new permanent policy. There are no medical exams and your premiums will be guaranteed, based on the first date you obtained a term policy! So, if you have any new medical issues when converting, this will not be factored in.
You may be able to keep part of your term insurance policy and convert the desired amount to permanent insurance as well. The whole process will take less than 30 minutes of your time- much less than buying a new cell phone at a store!