Buy a Child Policy for Your Teens

Here's a good idea . . .

* Before your child turns 16 y/o
* Buy a $20,000 life insurance policy
* Get a 10 or 20 year paid up or whole life
* A Double Protector is good - is paid up at 65 y/o

Why do this? Simple. It locks in a low rate and makes a nice gift to your children by their 25th. birthday.

It will not build a lot of cash value, but it does lock in a very low premium. That's your goal. Lock in a very low premium. This is truly a gift that will save them many dollars in the long run. It also gives you peace of mind.

This will serve as their cornerstone policy in adulthood. When they have their own children, they should be covered by Universal Life or Term Life or a combination with their cornerstone coverage.

If you want to know more about financial planning with insurance and high yield programs, please become a member of the Prosperity Connection.

Ken Aspinwall
Tel. 706-884-8946
Call 1-9 PM EST

Buy Life Insurance with a Set Blueprint and Strategy

As I am now Papa Aspinwall with four grand children, I've done good with my insurance portfolio. With the accumulated knowledge in my hand, I offer some ideas and strategies to help you build a sensible portfolio of LIFE insurance without over buying.

THINGS TO AVOID THAT WILL COST YOU

• Do not rely entirely upon your job insurance. If you lose your job, you will not be covered.
• Stand alone accident insurance is not needed, unless your job is highly dangerous. It can be bought cheaper as a rider on your privately held life policy.
• Never tell yourself that you do not need a private life policy. That could backfire on you badly by leaving your family in a financial shipwreck, if you were between jobs.
• If you are adequately covered, do not add on insurance with a bank loan or mortgage.
• Whole life policies are obsolete, except to cover young children. I will show you a better path to follow. It will save you money and offer more coverage.
• Avoid any agent that uses hard sell tactics or makes a derogatory remark to your wife about what he feels is your unconcern about her. A last ditch close like that shows desperation and unprofessional demeanor. Stand up and order him to pack up and leave immediately.
• If an agent does not want to show you a policy that meets or beats a Universal Life, send him on his way.
• Fail not to get a U/L policy with a flexible premium. It will be your most valuable feature in your entire financial plan.

SCENARIO: UNMARRIED MALE AGED 18-25 WITHOUT CHILDREN

• Buy a private policy for a $15,000 coverage. Look at a 10 year paid up, a 20 year paid up, a paid up at age 65 or a Universal Life.
• Take the life insurance that goes with the medical policy offered as a job benefit.

SCENARIO: MALE AGED 18-25 WITH CHILDREN

• Keep or buy a private policy for a $15,000 coverage. Use a 10 year paid up, a 20 year paid up or a paid up at age 65 to lay a foundation.
• Take the life insurance that goes with the medical policy offered as a job benefit. This will be a gravy policy to help your family make the transition to life without you.
• Purchase a joint Universal Life covering both spouses up to $50,000 and add an accidental death rider and a childrens rider. Let this be your family coverage policy.
• Buy up to $250,000 in term life. This premium should be less than $30.00 a month. Once your children have graduated from college, this policy can be dropped or replaced to obtain less coverage at a level premium.
• While your children are about ten years old, purchase either a paid up at 65 or a whole life policy. You can lock in such low rates that it makes sense to cover them for $10-20,000 range. When they reach age twenty, show them the policies, explain your reason was to lock in a cheap premium for them and hold the policies, until they reach age 25. Between that and age 25, educate them on why they should always keep these cheap policies. Never cash them out.

SCENARIO: MALE AGED 50+ WITH NO CHILDREN AT HOME

• Hold your paid up policies. Never cash them out.
• Drop the term insurance, if premiums too high and budget is tight.
• Maintain job related benefits with life insurance.
• Make sure the childrens rider was removed from the U/L policy.
• If you are on a tight budge, reduce the premium on the U/L policy.

REASONS FOR EACH RECOMMENDATION

• I've met people who feel like their job insurance is enough coverage. Appears that they have never given it careful thought. Unless this policy is portable, you must maintain additional coverage outside of your job benefits.
• A good insurance strategy could be the cornerstone of your financial plan. In my own case, my Universal Life policy has been flexible enough during a period of personal crisis or job loss. In the old days of whole life, the locked in premiums caused me to jettison these policies during budget cutting times.
• A U/L policy with flexible premiums can handle the high winds of an economic storm where fixed premiums get thrown overboard.
• Bank loans/mortgage life and whole life are the most expensive products. The one exception is the purchase of whole life on a young child to lock in low premiums for a lifetime.
• Once again, be sure that your main family policy e.g. the joint U/L has a flexible premium. In my earlier days, I had to drop numerous whole life policies when I had periods of no income.

Understand that a U/L policy is a term insurance combined with a cash accumulation feature. My U/L has been stable for 25 years. I've only had to adjust the premium maybe three times. So, using this product, I effectively locked in my premiums and costs. My cash value is pretty high and the policy continues to cover my wife and I. When one of us dies, the premiums stop, the benefit is paid and the other spouse continues to be covered. So, when I hear people talking down a U/L product, I hear a person who knows not what he is saying.

This is a sketch of an idea. I tried to avoid endless details. If you would like for me to assist you in the area of family budgeting and insurance strategies; I do charge a fee.

You are invited to call me to ask about anything stated on this blog. That's no charge. I only charge when you want to sit down and make a plan. As a bonus, just ask me and I will tell you a few places you could probably save money on your auto insurance.

Finally, if you happen to be in the market for a mortgage, see the link to Loan Home. Loan Home offers a REBATE on your mortgage. For example, you woulod capture a $400.00 rebate, if you borrowed $125k on your mortgage.

Respect.

Ken Aspinwall

I recommend the Money Power Strategy

Learn about my personally designed Money Power Strategy.

SET UP A GOOD LIFETIME STRATEGY WITH YOUR INSURANCE

LIFE INSURANCE - the CORNERSTONE OF YOUR FINANCIAL PLAN

I have a 401k linked to mutual funds. It's on hold. I have invested in real estate. I am out and on the sidelines for the duration. I still have my life insurance. It is still in tact.

These are turbulent times. In pervious times of crisis, I had whole life policies that had to be dropped when it came time to cut costs. I will show you how I stopped being forced into that choice, which was no choice because there were no other options from which to choose.

When we understand insurance products, we are in a better position to make good plans and decisions about our purchases. My credentials are manifold. I have been a licensed life and health agent in the state of Georgia. I have made many financial decisions. I have had to respond to numerous personal crisis conditions. My experiences have been many and varied. I have a lot of background from which to draw wisdom and share it with you.

HERE IS THE EXACT LIFE, DISABILITY AND HEALTH STRATEGY I USED

AGE 32 MALE, MARRIED WITH TODDLERS, TWO INCOME FAMILY

• Both spouses elected to take the life and major medical insurance provided by their employers.
• Additionally, a Universal Life policy was set up to cover the family. It was set up to cover both spouses for the same amount of $50,000 and included an accidental and childrens rider. The premiums were flexible and this is an essential key, a must have item for anyone. This policy would pay a death benefit on the first spouse to die. The policy would continue to cover the surviving spouse. The premiums would no longer be charged. Ideal.
• The husband took a short-term disability policy on the outside. The wife took a disability policy from her employer.
• An additional $37,000 of life coverage was later taken on the wife. The reason was that her employment had always been stable and high paying. Her husband felt the need for the additional coverage because of an earnings difference. He wanted to make sure the family would have enough money to get them through the transition. The policy itself was tied to commercial real estate investing and has performed very well.
• A term policy for $250,000 was taken out to cover the life of the husband. This policy was kept in force while the children were under age eighteen and living at home. This family also had a home under a $125,000 mortgage. Upon death, proceeds would be used to pay off the mortgage and give the family some emergency funds to maintain themselves.

SAME PEOPLE A FEW YEARS LATER

• Whole life policies were purchased on each child to lock in a cheap rate.
• Coverage in the $10-20,000 range.
• Policies will be given to the children by the time they reach age 25.
• Premium on the U/L policy scaled back up to help build cash value and protect against another down time.

SAME PEOPLE, AGE 50 MALE, youngest child age 11, two income family

• The basic program above was in tact with a couple of exceptions.
• Husband experienced long-term unemployment.
• Due to a financial crisis related to job loss, the flexible premium on the U/L policy was scaled down and the term policy that was about to increase in price was reluctabtly dropped.
• A loan was taken out of the U/L policy

SAME PEOPLE, AGE 59 MALE, ALL CHILDREN OVER AGE 20

• U/L policy still in force and premiums scaled back down to meet the crisis of disability.
• Husband applying for disability due to injuries from car wreck.
• $37,000 coverage on wife still in force under an extended term provision, as premiums are no longer being paid due to limited budget.
• Husband still covered by wife's employee related major medical.
• Wife has a retirement plan under her employer.
• Husband has an unfunded 401k plan.

SUMMARY OF HOW THIS PORTFOLIO WORKED FOR THIS FAMILY

• The flexible premium feature of the U/L policy came in handy at crisis time. Rather than dropping a policy that had a set premium, this client was able to scale back the premium for the duration. After the crisis was over, the premiums were increased again to build up the cash value of the policy.
• The flexible premium option was used at least two or three times during the entire coverage period of this policy and the client continues to be covered to this day by the U/L product.
• The $250,000 term policy did its job. Although the benefits were never paid out, the family had peace of mind while children were in the home. Coverage dropped.
• Good decision to take out the disability policy. The husband was injured in an auto accident. While a pain and suffering lawsuit has been filed, this coverage will help them get through the interim. Lawsuits can take a long time.
• The U/L policy still covers the couple for $40,000 and they still have the $37,000 coverage in force on the wife.
• Rather than pay the loan back, the U/L coverage was dropped down to $40,000 on both spouses.
• The cheap whole life policies are still in force on the adult children.
• Total active premiums are less than $100.00 for the entire  coverage on all persons.

MAY I SERVE YOU WITH YOUR FINANCIAL PLANS ??

I do not serve as an agent for any company. My service is advisory. Call me and let me get a profile on you and your goals. I will review products that you might be considering or I can help you research the product availability.

I charge a flat fee for my services. Use AlertPay or PayPal to pay me.

BONUSES. Ask how to get a rebate on your next mortgage. Ask how to save money on auto insurance. Ask to join my Mastermind group.

See my other financial blogs.