Typically, a life insurance policy financially protects your family…not YOU. But now, YOU CAN be the beneficiary of your life insurance policy, while you’re still alive. Sounds too good to be true? The answer might surprise you.
Let’s face it. The topic of life insurance tends not to generate a great deal of enthusiasm with most folks. After all, traditionally, for life insurance to work…YOU have to DIE. Not a super selling point, I know.
I also think it’s hard for most people to wrap their heads around a product that rewards everyone else but the person who purchased the policy.
The truth of the matter is, people who might have a somewhat negative view of life insurance, well, they probably don’t own a policy. Seriously, I don’t know anybody who has life insurance who wishes they didn’t have it.
But nowadays, more and more people are living longer. Some of us will NOT have saved enough money to live comfortably in their golden years. And for many people, the fear of running out of money is actually greater than the fear of dying.
Life insurance turns pennies into DOLLARS when your family needs it the most. That’s cold, hard cash to pay the mortgage on your home, or buy groceries and pay bills, or have the financial resources to send your kids to college.
What’s not to love?
But here’s the rub. There’s one person who traditionally is never around to witness all the great things that life insurance can do. And that’s YOU. Assuming that you’re the insured party, the monetary benefits of the policy normally kick in only after you have, well, kicked off. It’s your beneficiaries who reap the financial rewards. That’s just how it works.
Historically, the life insurance industry hasn’t exactly been a hotbed of innovation. In fact, during my entire career, I’ve seen maybe 5 truly new things.
Today, I’d like to talk about one of them. And when you hear how this new insurance product works, you may wonder…as I did…why it took so long for the industry to come up with it.
Be you can be the beneficiary of your own policy.
What if I told you there’s a new type of life insurance policy that allows YOU to be your own beneficiary…even if you don’t die!
With a new type of a Guaranteed Life Insurance Policy (or GUL), you can actually tap into your policy’s death benefit while you’re still alive.
Your coverage can never be cancelled or reduced, and your premiums will never change. This policy’s coverage is guaranteed for life…regardless of future changes in your age, health or occupation (as long as you pay your premiums on time).
So how would a GUL policy work for me?
Let’s say you’re a 55-year old male, non-smoker, and you purchase a $500,000 GUL policy, with an annual premium of $7,128.81 (your individual rate could vary). And this rate is guaranteed never to change. Over two decades, you will have paid $142,576.20 in premiums. If you die after twenty years, your family will receive the $500,000 death benefit (providing your policy is in force when you die)!
However, you could also pay off this policy faster, if you wish. You’d be paying more each year in premiums, but the policy would be paid off more quickly. In our prior example, this same age 55 male, non-smoker…instead of paying $7,128.81 a year until he’s age 75 (over 20 years), he could pay off the same policy by age 65 (over 10 years), but his premiums would jump to $13,502.95 a year. That’s a total of $135,029.50 in premiums…to buy a $500,000 pot of money!
And if you’re younger, that policy GUL policy would cost even less. Conversely, if you’re older, a little more. And women tend to pay even less!
But wait! There’s more!
If you LIVE past age 85, you can actually start tapping into the cash value of your death benefit…while you’re still alive! This is an amazing feature. You can start withdrawing up to 10 percent of the death benefit each year…no questions asked…until the entire death benefit is paid out! Yeah, REALLY!
And if you need long term care, you can get the money even SOONER!
If you’re one of the 70% of Americans that, as we age, end up needing long term care (LTC)…meaning that you either need help with 2 or more of the 6 activities of daily living (eating, dressing, bathing, toileting, continence, or transferring) or if you have a severe cognitive impairment (such as Alzheimer’s Disease), you can add a Long Term Care Rider or Chronic Illness Rider that can let you access 2 percent per month (up to 24 percent of your total death benefit annually OR 4 percent per month (up to 48 percent of your total death benefit annually).
(Note: Any payments from these two types of riders will be deducted from your total death benefit. The total amount you can collect is based on the maximum Federally-mandated amount allowed for this type of policy. Talk to an insurance professional for any clarification you need on this issue.)
And finally…THIS amazing feature!
If, during a 60-day window at the end of 25 years, you decide you don’t want it, you don’t need it, or for any reason you just don’t want to keep the policy…you can surrender it and get a full refund of every penny you paid! (The only catch on this feature is that the refund amount is limited to 40 percent of the policy’s face amount…may or may not affect you, depending on your premiums.)
This option can come in handy if you have a sudden, unforeseen circumstance and need emergency cash.
And you can relax knowing that this particular product is issued by one of the largest, most respected and highly rated insurance companies in the world. You’ll definitely know the name when you hear it!
If you would like to learn more about these policy options, talk to us. At AccuQuote, we have been helping our customers save a ton of money since 1986.
[Disclaimer: Rates, policy forms, and availability of the product and certain features described varies by state. Not available in all states. Call us to check availability in your state. This presentation is not intended for those who reside in states where the product is not available.]