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.

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