For the average person interested in life insurance, it can be a daunting, fearful confusing process.
I UNDERSTAND THIS.
With so many agents and websites trying to sell you their recommendations, let’s get AGENT RANDY to break through the fog and finally get SOLID ANSWERS in a changing world.
Below are my definitions in plain street language of the main policies offered. (Please note that I DO NOT recommend permanent plans unless the individual is above age 80 and there is no other choice).
One thing to remember, the agents that push permanent plans are paid not only the first year commission but, EVERY YEAR the policy stays active.
Normally on Term products the agent is ONLY paid for the FIRST YEAR ONLY. So, you must ask yourself when shopping is the agent REALLY proposing what is best for YOU or what is best for HIM/HER?
Permanent plans can have many moving parts like interest rates, projected values, guaranteed values, policy loan options, tax deferred growth, investment options tied to your cash value and death benefit,the so called ” Bank on yourself ” option while using a whole life policy to quickly build cash value. My opinion? AVOID !!!
Millions of innocent people from the lowest income to some of the most affluent families in America are victims of being sold the wrong life insurance policies. Let’s solve this problem!
NO.1 TERM - A GUARANTEED death benefit at a GUARANTEED rate for a GUARANTEED time period. (HIGHLY RECOMMENDED! 98% of all policies should be this)
Consider for a moment that you can buy a 30 year term up until age 58(covers you to age 88) a 25 year term up until age 65(covers you to age 90) a 20 year term up until age 70(covers you to age 90) a 15 year term up until age 78(covers you to age 93) a 10 year term up until age 80(covers you to age 90). Why would you buy a permanent policy that costs you 5 to 10 times the price of a term policy when you can (LADDER or STACK) term policies throughout your life to not only create a much larger benefit for your heirs, loved ones or charity but also save huge money that can be wisely invested over your lifetime? My advice?
” BUY TERM AND INVEST THE DIFFERENCE UNTIL THERE IS NO OTHER CHOICE ”
No.2 WHOLE LIFE - A Permanent plan with a fixed rate and death benefit with cash value controlled by the insurance company. (The oldest form of life insurance, cash value takes a long time to build) AVOID
No. 3 UNIVERSAL - A Permanent plan where you can raise or decrease your premium rates, cash value accumulation is controlled by the insurance company. AVOID
No. 4 INDEXED UNIVERSAL - A Permanent plan where you can raise or decrease your premium rates, cash value accumulation is attached to a stock market index. (S&P 500) AVOID
No.5 VARIABLE UNIVERSAL - A Permanent plan where you can raise or decrease premium rates, cash value accumulation is controlled by your choice of investment options and their performance. AVOID
No.6 VARIABLE - A Permanent plan with flexible premium rates that allows you to select from the widest variety of investment options, cash value and death benefit are controlled by your investment performance. AVOID
No.7 SECOND-TO-DIE (SURVIVORSHIP) – A Permanent plan taken out on 2 people at the same time (usually husband-wife) that DOES NOT pay out benefits until the second spouse dies. (ONLY used in high-end estate planning to delay eventual estate taxes).
AGENT RANDY SAYS: this is a fantastic plan that should only be carried out by the most respected estate planning attorneys. ONLY FOR THE ULTRA-WEALTHY. Also, the downside is the second spouse receives ZERO $$$ when the first spouse dies.
No.8 FINAL EXPENSE – A Whole life policy with a small death benefit designed to cover all funeral expenses and end of life final bills.
AVOID, Outrageously overpriced. This should only be the last resort for people over age 80.