Family Is Important To Me

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I’ve been in the life insurance and financial services business for a long time. I’ve seen families destroyed because of the lack of planning. But I have also seen families saved from disaster because they did.

When it comes to building a plan, I have always said, “Protection first. Period.”

I have often questioned, “Why do some people not see that important?” Frankly, it’s hard to explain. It has become a passion for me and that’s why I handed you this book.

It doesn’t take long to read it and my hope is that you will take the next few minutes seriously, free from distractions.

I begin by saying “The best time to purchase life insurance is RIGHT NOW!” The biggest mistake people make about life insurance is waiting. There will come a moment in everyone’s life when it becomes too late. Too late to protect the people they love. Too late to protect yourself.

Majority of Americans (82%) over the age of 25 think that the cost of a term life insurance policy is at least three times higher than it actually is.

In a survey from Forbes (September 2023), it was discovered that a vast majority of Americans (82%) over the age of 25 think that the cost of a term life insurance policy is at least three times higher than it actually is.

When asked what the cost of a 10-year level term with a $500,000 death benefit would be, only 3% were able to provide the correct number of $20 a month. The responses were as follows:

• 3%: $20 a month (correct answer)

• 18%: $40 a month

• 28%: $60 a month

• 20%: $80 a month

• 10%: $100 a month

• 6%: $120 a month

• 5%: Not sure

There were also concerns about who could be the beneficiary and what is actually covered by the policy.

it’s about love

Accelerated Benefits

Some carriers offer an additional benefit with their low-cost term plans called “Accelerated Benefits”. In fact, you have other types of supplemental coverages, you might want to have a discussion of how this one plan can save you important dollars since it “might” be more affordable to carry one policy instead of several.

One insurance carrier provides term life insurance payouts based on the severity of a chronic illness. These payouts are available if you are unable to perform two out of six Activities of Daily Living (ADLs), which include dressing, eating, toileting, transferring, bathing, and continence. Additionally, coverage includes severe cognitive impairment. Also included is severe cognitive impairment.

Additional Accelerated Benefits

Also, based on severity, there is a payout for critical illness like:

Severe Burns (firemen are not excluded)

Major Heart Attack

Coronary Artery Bypass

Stroke

Major Organ Transplant

Renal Kidney Failure

Paralysis

Coma

Invasive Cancer

Blood Cancers

Another benefit is Terminal Illness – if you have less than 24 months to live, the carrier will offer a payout to you.

There is even a guaranteed amount provided based on the number of years that you have the policy in place.

After the payout, whatever remains will be paid out as the death benefit at the client’s passing.

In 2024, an agent, who is a friend of mine, told me such a remarkable story I have to pass it on to you.

“Many times,” he said, “You just don’t talk to your friends about the importance of life insurance. I’ve always been reluctant since I didn’t want it to interfere with our friendship. But, of course, I would at least mention it to him.

So, in 2021, the next time he met his friend, he said, "Mark, as a friend, I think I should mention to you that you could purchase $500,000 more protection for your family for just $67 dollars a month as a 57-year-old,” he said.

Mark replied automatically, as most people do, “I have more than I need.”

The agent stopped right there, nodded, smiled, and changed the subject.

Two months later, Mark told the agent, “I’ve been thinking about that price for the protection, and I believe we need to do that. My family is important to me, and the price is so low; we must take care of that.”

Even though Mark was an occasional cigar smoker, the policy was underwritten as a nonsmoker.

In 2022, Mark confided in the agent that he had not been feeling well, went to the doctor, and he was diagnosed with prostate cancer. More than likely, he would never be able to get a life insurance policy approved again.

The agent said, “I didn’t mention this to you, Mark, but your policy has accelerated benefits attached to it.” After explaining more about the benefit, the agent said, let’s see what type of offer comes back. Mark agreed.

Mark had paid $1206 into the policy, and the carrier returned with an offer of $400,000!

Mark paid off his mortgage, redid his backyard, and put a huge down payment on his son’s new home for him and his new bride.

And the cancer went into remission.

What a wonderful story. Unfortunately, in the spring of 2024, doctors found lesions in his brain and lung. Mark passed in May of 2024.

Family was important to Mark.

So, what is the cost of term life insurance?

Well, it varies. It depends on your age, sex, health, term length, and numerous other factors. In some cases your policy could be rated or even declined.

But you have to apply to see.

Here are some rates to give you an indication of what you might be looking at:

$1,000,000 Death Benefit

So, what happens at the end of the Term?

Convertibility

You can pay an increased price per year, although that can get expensive quickly, OR

You may convert to a permanent policy WITHOUT having to prove insurability until the last day of the term or age 70, whichever comes first*

*This does not apply to most term policies, and most are not as flexible. Be sure to ask about convertibility on the plan you pick.

There are many different types of life insurance. Some are built to accumulate dollars for future years, some are built to offer a permanent death benefit guaranteed forever. Some, like these examples, are built for protection at extremely affordable prices.

I would love the opportunity to discuss with you the options that are available. But know this, when you think about the amount of coverage you have, many people will respond, “I have x amount at work.” Most of those policies are in place only if you work there and can be offered at a higher rate. You want to check out what is offered and how it works.

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Family Is Important To Me by rasberryproducergroup - Issuu