How Would You Like to Pay Less for Your Life Insurance?
- Lower Cost
- A Term Product that Never Goes Away
- Term Insurance that Never Increases with Age
- Your Policy Can be Paid Up
- Lifetime Income – Guaranteed
- Return of Premium
All of the attributes mentioned above will definitely solve
some problems with the purchase of life insurance. These
attributes are currently available in a new concept in life
insurance called the Family Income Legacy™—or as we
professionals call it, the Reversionary Annuity. It is
called the Reversionary Annuity since it is conditioned on the
survival of the beneficiary beyond the life of the insured and
income is guaranteed to be payable to the beneficiary in a
stated amount per month or year so long as the beneficiary
lives. This policy is lower in cost because the insured
and the beneficiary are both underwritten for coverage and
because we’re basing the cost on the beneficiary’s life
expectancy. This product has unequaled affordability due
to this feature.
In considering financial goals the real concern is to live
debt-free and to have an adequate lifetime income; but since
the need for lifetime income usually requires the purchase of
high-premium, permanent insurance, it becomes a goal that
generally is not met. Retirees find the cost for life
insurance becomes too high and, in fact, the policy lapses
before death occurs. Therefore, no benefit is paid.
Term insurance can only solve the need during the policy
period, but at older ages, term insurance becomes
unaffordable. Permanent insurance is hardly ever
purchased in the upper-age group because it becomes
cost-prohibitive.
It is apparent to the insurance industry that the
upper-aged lacks the ability to buy insurance coverage for a
surviving spouse. Quite simply the premiums required for
traditional products are too high to fund the present value of
income needed. It is true that the buyer can continue to
buy term life insurance, but we know premium increases are
inherent with term insurance, which makes that choice
unattractive.
The Reversionary Annuity product mentioned above seems to
combine the best attributes of all life insurance policies
available to the senior market. The premium is only paid
for 10 years and then it disappears. It has the benefits
of permanent insurance with its guarantees and it has the
security and tax-benefits of an annuity.
This product, by design, reduces the premium cost to its
lowest-possible level, which means the insured can buy many
times more protection for his premium dollar. This
product offers an answer to the dilemmas often faced by the
surviving spouse. Their insurance need is not to provide a
substantial lump-sum insurance, but instead to provide a
guaranteed lifetime monthly income.
Consider another known factor that most of my insureds are
becoming aware of: the need for lifetime income of their
female spouses. Gayle Sheehy wrote in an article in U.S.
News & World Report, “An American woman who today
reaches age 50 free of cancer and heart disease can expect to
see her 92nd birthday.” I might add, that the majority
of these years will likely be lived without her spouse, due to
his shorter life expectancy. The critical question is,
how will you fund the needed source of income for 42 years?
Will it be with a traditional life insurance policy, or with
the Reversionary Annuity discussed above? I believe this
product will play a major role in the family’s search for
the best answer in providing income-stream during their life
expectancy.
Your Survivor's Future
A Quick Look
Pay Less for Life Insurance?
Prospecting Letter
Proposal Form
Unique Life Insurance
Stewardship Life Income
How it Works
Personal Uses
Business & Estate Planning
Important Considerations
FAQ
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