We are in the midst of one of the most uncertain financial times in the history of America. This is the perfect time to take a very close look at the Life Insurance policy you’ve been paying for all these years and find out about the new, innovative and guaranteed policies which could reduce your annual premium outlay by 50% to 100%, assuming you qualify medically. Tens of thousands of policy owners have already taken advantage of these new plans issued by the largest and highest rated insurance companies in the world.
The Wall Street Journal recently warned that thousands of older Universal Life Insurance policies are failing due to Life Insurance companies having credited much lower interest rates over the years than they originally projected when these policies were first purchased. This interest deficit leaves the policy owner on the hook for unplanned-for cash-value shortfalls and policy expenses. These factors determine how long the policy will last based on the original non-guaranteed planned premium. Many of these so-called permanent policies are subject to early lapse in spite of the fact that the policy owner had been paying his billed “planned premium” each and every year. It’s all too common that neither the original agent who sold the policy nor the life insurance company ever took the time to educate the policy owner about the fact that the so-called “planned premium” they’ve been paying all these years was based on assumptions that failed to materialize. As a result, thousands of policy owners who expected to keep the policy in force until the insured’s death have been receiving lapse notices when the insureds are at advanced ages with medical conditions that preclude them from any reasonable economic options. In addition, if the worst happens and a policy lapses, its demise can result in a big tax income tax bill to the policy owner.
Fortunately, many older insureds are able to leverage their relatively good health combined with the cash value in their old policies and our physician-directed medical underwriting to qualify for the same coverage at a much lower cost. To address these very serious issues, we provide you with the following 3 of The 7 Secrets to Saving 50% to 100% on your Life Insurance Costs:
1. How to Double your Life Insurance Death Benefit at the Same Cost, Guaranteed. A large number of top rated life insurance companies are now offering guaranteed premium Universal Life insurance products with innovative premium payment strategies that can actually double an insureds death benefit at the same original outlay, assuming they qualify medically. These new Guaranteed Universal Life Insurance policies are much more competitively priced and have far stronger guarantees than older Whole Life and Universal Life policies.
A 67 year old husband and wife had an old Last-To-Die policy with a non-guaranteed death benefit of $1,200,000 at a $13,625 annual outlay. Their new policy had a guaranteed death benefit of $1,825,000, a 51% increase in death benefit, at a $6,000 annual outlay, a decrease of 56% in cost. The new policy was guaranteed to their age 100 by one of the highest rated and safest insurance companies in America.
Their older policy had a so-called blend of Term Insurance and Whole Life to maintain the total original death benefit. Most people are unaware of the fact that the Term Insurance portion of their Whole Life insurance policy is not guaranteed. The price of this term component can be increased by the parent company anytime the company feels the product is not profitable enough.
2. Using a Physician Directed Medical Underwriting approach consistently achieves the best possible insurance company ratings, resulting in the lowest possible outlay. The average life insurance agent typically submits your application to only 1 or 2 insurance companies and simply waits and hopes for the best underwriting offer. Life Insurance agents don’t normally have any real resources to make a difference in the dynamic process of medically underwriting your risk. Many agents often turn over the responsibility of ordering your private medical records to the insurance companies themselves, which is the worst thing they can do for their client, for many reasons. Because Doctors are now so afraid of potential lawsuits, they routinely write down everything in your medical file including remotely suspected and often unsubstantiated medical issues. This way, if a serious medical condition develops in the future with one of their patients who may be the litigious type, they have a written record to protect themselves. Unfortunately, this “write everything down and cover yourself” approach with today’s medicine causes many difficulties for older people who apply for life insurance. The problem is that when they apply for life insurance, insurance companies search their medical records for keywords in their medical records like cancer, heart disease, diabetes, high blood pressure, stroke and carcinoma. Even when the medical issue was simply suspected and turned out to be nothing, insurance companies routinely rate you up and charge you a higher premium.
The better way to underwrite is to have a physician obtain and review each of your medical records before they go to the insurance company. If something is in your records where your doctor more than likely wrote something to “cover themselves”, the physician will personally call the doctor to confirm his suspicion. If it was, in fact, a Cover Yourself item, which it often is, he will ask your Doctor send a follow up letter to the insurance company which accurately explains the issue away. This kind of “hands on” medical underwriting approach obtains consistently low premiums from Life Insurance companies.
In addition to your medical records being reviewed, an insurance physical is completed by a doctor at your home. Generally you should do this physical first thing in the morning, because you have to fast for 8 hours before the test and you are the most calm early in the morning.
After these steps are complete, don’t apply to only 1 or 2 insurance companies, your complete medical package and insurance exam should go to the 10 highest rated insurance companies that specialize in low outlay, guaranteed life insurance policies. Today, Life Insurance companies are quite willing to compete for your business. Out of the 10 companies, often 1 or 2 will give a much better medical rating than the other companies. This translates into the lowest possible outlay for you.
For example, a 65 year old recently applied for $2 million of life insurance who had a number of health issues which included a history of cancer and physical disability. The best underwriting offer he had gotten was a “Standard”. However, another insurance company that had originally offered him Standard agreed to a make a Business Decision and give him a “Preferred” health rating. His new insurance death benefit increased by 80%, and his premiums decreased by 45%, on a guaranteed basis to his age 100, with one of the largest and highest rated companies in America.
3. How to pay $0 premiums for your life insurance. Many of our high net worth clients who have lost much of their net worth and income in this economic downturn have a reduced need for the life insurance they bought. Some have taken advantage of the Life Settlement Marketplace to sell their policy for cash instead of simply surrendering their insurance for its cash surrender value.
Most people are not aware of an exciting new type of Life Settlement Program that only a few companies offer: The Shared Death Benefit Program. Through this Shared Death Benefit Program, the client gets to keeps half of their death benefit for their family and never has to pay anymore premiums. The buyer pays all the future premiums for as long as you live, and they get to keep half the death benefit when you die in exchange for paying all future premiums.
A 72 year old woman had a five million dollar insurance policy and because her net worth and income dropped so dramatically, she decided she only needed to retain half of her $5,000,000 policy. Her insurance company offered her a paid up policy of $1,600,000 with no further premiums. The Shared Death Benefit program gave her a fully paid up $2,500,000 paid up policy, with no further premiums for as long as she lives.