life insurance

Everyone knows death is inevitable, but nobody truly lives like they believe it. If they did, they would live life much differently. Life insurance is for those of us who want the peace of mind knowing that when we die, our loved ones won't need to worry about paying the bills. Life insurance is for the benefit of others, not ourselves and purchasing it is the most unselfish thing that anyone will ever do for their family. Understanding life insurance can be complicated and sometimes overwhelming to figure out.

The Ins and Outs of the Life Insurance Purchase Process  - By Scott Whittemore, CFP® 

Why life insurance? 

Life insurance is a very useful both to individuals and businesses, but also to our overall society.  When would cash be more needed than after the premature death of the main bread winner of the family?  The family with life insurance will not suffer financially or be a burden on other people or the government. 

For the month of February, www.thewisebuck.com is going to focus on giving you tips about insurance. Life Insurance, Health Insurance, Auto Insurance, Home Owners Insurance, etc. And, while I know this probably isn’t your (or my) favorite or most exciting personal finance topic, it is very important in creating financial independence and safe guarding our financial world. How so?

Insurance was never designed to be a financial investment, but, more importantly, insurance has always been the best financial tool for providing money when people need it the most:

1. Death
2. Disability
3. Health
4. Business Buy-outs
5. Estate Planning Liquidity
6. Retirement

There are so many options out there when it comes to life insurance. Do you know what type works best for you? Perhaps a dual option is better for you. Before you choose a policy you have to choose an agency and an agent. This can be difficult if we do not already have a good relationship with someone.

Regarding choosing an agent, I recommend looking for someone with a solid character. Someone you know, like and trust. If you do not know any agents, ask a friend for a referral.

Policy Options

In spite of being an industry with billions of dollars in transactions taking place year after year ($12 billion estimated in 2008), the Life Settlement industry seems to still be a mystery to many seniors and their advisors. Not knowing about a life settlement could result in both parties missing out on substantial amounts of money for themselves.

Financial magazines, newspapers, TV programs, and local communities have battered the reputation of a very strong and useful financial product, the annuity. In many cases, the most outspoken opponents of annuities are those who are not licensed to offer them or don’t really understand them.

 I started out in this business with the world’s largest insurance&annuity company housed in skyscrapers throughout the world.  Plush offices high in the sky, decorated like fancy French restaurants, many are the size of a large home.  A staff dressed by Ralph Lauren, wielding the slickest brochures money can buy, collaborated on $4 million dollar, 30 second TV ads in private dining rooms. Their sales scripts are designed to breed fear&anxiety:  will you outlive your money? What happens when your spouse dies?

Annuities and life insurance are an excellent way for you to prepare for retirement and both products should be considered for a solid financial portfolio.

Although they both have death benefits, the benefits are applied under different circumstances. In essence, life insurance benefits are applied in the event you die too soon and annuity benefits are applied if you live too long.

Another way to look at it is life insurance protects your loved ones if you die before your financial obligations are met and annuities protects you if you outlive your retirement assets.

What is a life settlement? A life settlement is the value in a life insurance policy that can be unlocked that is usually greater than the surrender value of the policy. It is a life insurance policy that can be sold in the seconday market. The insurance policy can be term or universal life. It is also where the insurance policy has become less important for the policy holder, there is no need for it anymore and he or she ha been paying on it for years.