Typical Personal Uses
Care-Giving Support
- When a married person becomes ill or disabled and
requires care, it is often the spouse who becomes the
care-giver. Performing this important and loving
service places great emotional, mental and physical strain
upon the care-giver. Recent medical studies have
document an increased mortality risk associated with care
giving. A Stewardship Life Income on the life of the
care-giver can provide money to hire professional services
for the beneficiary in the even of the care-giver's death.
- Many elderly parents rely upon physical and/or financial
support (in whole or in part) from their adult
children. In many cases, the parent(s) would be in
dire straits without this support. Should the adult
child predecease the dependent parent(s), the Stewardship
Life Income is an ideal product to guarantee continuing
financial support to the parents. Given the younger
age of the insured adult child and the older age of the
dependent parent beneficiary, the premium for this type
policy is modest. if the beneficiary is standard
through table 12 and age 80 or younger, the Return of
Premium Rider may make this coverage even more attractive.
Pre-Retirement Planning
- The Stewardship Life Income can often allow an
individual to select a higher benefit under a Defined
Benefit Pension Plan. In many cases, a prospective
retiree can choose a single life payment option rather
than a joint and survivor option and use a portion of the
income difference to pay the premium for a Stewardship
Life Income policy naming the spouse as beneficiary.
The result can be more income for the retiree and spouse
while both are living and more income for the spouse
following the death of the retiree. One of the
significant advantages of the Stewardship Life Income is
its favorable federal income tax treatment. The
benefit payments from the Stewardship Life Income are
treated, for federal income tax purposes, the same as a
life insurance settlement option, rather than being fully
taxable like the income from a pension plan. This
difference in tax treatment can make the use of the
Stewardship Life Income to enhance retirement income an
especially attractive option. A qualified tax expert
should be consulted for detailed information.
Post-Retirement Planning
- Retirees who are dependent upon monthly income from a pension
plan plus Social Security retirement benefits may be able
to maintain their standard of living while both the
retiree and spouse are alive. However, following the
death of a spouse both the pension plan income and the
social security benefits payable to the surviving spouse
will normally decrease. Often this decrease is so significant
that the surviving spouse is unable to maintain his or her
lifestyle. many elderly widows whose incomes are now
below poverty level enjoyed incomes above poverty level
prior to the death of their spouse. A Stewardship
Life Income can guarantee the income necessary to prevent
such a tragic situation from occurring.
Term Insurance Alternative
- The Stewardship Life Income can be used as an
alternative to term insurance for an older insured.
The guaranteed monthly income benefit for the beneficiary and
the high benefit to premium ratio make the Stewardship Life
Income an attractive alternative to term insurance.
Marriage & Divorce Situations
- The Stewardship Life Income can be an effective tool in
insuring alimony payments in divorce situations. It
is usually more appealing ot the spouse required to pay
alimony than traditional life insurance because (1) the
premium is normally less, and (2) a monthly income benefit
is preferred over a lump-sum benefit. It is also
appealing to the income recipient because of the guaranteed
monthly income.
- The Stewardship Life Income is an especially effective
planning tool in remarriage situations which involve
prenuptial agreements. the estate of the insured may
be distributed to children or other heirs of a prior
marriage, and the current spouse can be the beneficiary of
a guaranteed monthly lifetime income from the Stewardship
Life Income.
Sub-Standard Applicants
- Both the insured and the beneficiary are underwritten
for the Stewardship Life Income. In situations where
both the insured and the beneficiary have impaired health,
the increased health risk of the insured will cause the
premium to increase. However, the increased health
risk of the beneficiary will cause the premium to
decrease. This unique feature of the Stewardship
Life Income causes it to be especially cost effective in
providing a guaranteed lifetime monthly income benefit for
a beneficiary who is in poor health. These
offsetting factors cause the Stewardship Life Income
premium to be very attractive vis-a-vis traditional life
insurance.
Group Insurance Replacement
- Employer-provided group insurance is usually
substantially reduced or completely discontinued following
an employee's retirement. Replacing this lost
coverage is expensive. Because of its unique design,
the Stewardship Life Income is a cost efficient
replacement alternative.
Source: The Baltimore Life Companies sales materials provided for use by
Independent Insurance Sales & Brokerage, Inc.
Your Survivor's Future
A Quick Look
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Unique Life Insurance
Stewardship Life Income
How it Works
Personal Uses
Business & Estate Planning
Important Considerations
FAQ
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