My name is Jerry Goldstein and I have worked for MetLife for over 40 years in both sales and management positions. My focus has always been life insurance for family and business protection, estate preservation and protection. Since retirement from MetLife I have worked with the largest and best life insurance companies to provide the most competitive products and programs to my clients. I also work with and partner with some of the best brokerage professionals in our area.
Today I am providing you with an overview of the different basic types of life insurance programs and an outline of just some of the reasons for life insurance protection. In addition I have provided an example of the premium cost for a few of the more popular programs available today.
The premium a client is charged for life insurance is based on their insurability and like any insurance program an underwriter will review those insurability aspects that will impact the cost of the product they are offering. With life insurance the primary concern is your health, lifestyle and avocations including travel. Different companies look at different underwriting issues differently and this changes frequently.
I believe I, along with the professionals I work with, have the experience you need to direct you to the right companies based on any underwriting issues you have and I am available to confidentially review these concerns. Examples of some of the more serious medical underwriting issues are having a history of cancer and/or heart disease. Many medical issues are no longer a major underwriting concern and easily insurable such as high blood pressure, high cholesterol, diabetes, sleep apnea — assuming they are under good control and under the regular care of a doctor. This can also include many past cancer and heart disease issues based on their severity and prognosis.
Lifestyle underwriting issues include smoking, alcohol and/or substance abuse, DUI and/or poor driving records, dangerous sport avocations and some international travel destinations.
Again you can review your underwriting concerns with me in complete confidence and I can typically get a confidential (verbal and non-binding) underwriting opinion within a couple of days.
If you are fortunate enough to have your good health — “buy now”! The underwriting classification you are offered has a significant impact on the premium cost you will pay.
Types of Life Insurance
Term Life Insurance
Term life insurance policies provide affordable, temporary coverage. Term policies contain no cash value and are designed for death benefit protection only. The premiums may be level for the first 10, 15, 20 or 30 years, depending on the policy selected. Because the death benefit protection is for a limited period, the premium is often the lowest of all types of life insurance policies. However, after the level term period, premiums go up significantly and increase annually.
Whole Life Insurance
Whole life is the traditional form of permanent life insurance. It provides the certainty of level premiums, a guaranteed cash value and a guaranteed death benefit. Whole Life provides the extra security of guaranteed lifetime protection at affordable rates, yet it includes the element of cash value accumulation and non-guaranteed dividends with participating contracts.
Universal Life Insurance
Universal life is a flexible premium, adjustable life insurance product that provides you with the flexibility of choosing the policy features that are appropriate for you and adjusting those features as your financial priorities and needs change. The policy cash value grows on a tax-deferred basis. The death benefit and internal policy cash value growth are not guaranteed and are based on a continuation of current internal mortality and expense factors and interest returns.
Guaranteed Universal Life
Considered a hybrid between term life insurance and permanent life insurance or permanent term coverage whereby the death benefit and premiums are guaranteed for life or the period of time selected. Designed for lifetime death benefit only protection. Policy values are minimal or none. Premiums must be paid on a timely basis.
Indexed Life Insurance
Indexed universal life is a version of universal life that combines death benefit protection with the opportunity to grow cash value through an account that credits interest based upon the upward movement of stock market indexes – without the risk of investing directly in the market. The Index Account features a zero percent floor which guarantees your account won’t earn less than zero percent due to poor market performance.
Variable Life Insurance
Variable universal life insurance is designed to provide death benefit protection and the potential for cash accumulation. The combination of flexibility, attractive tax features, and Separate Account investment portfolios create life insurance products that you can tailor to your insurance needs, risk orientation and long-term objectives. Considered a security that must be accompanied by a prospectus on account of potential equity market loss to internal policy cash values.
Waiver of Premium typically will waive the premium after an elimination period six months due to a total disability. Long Term Care or Chronic Care Rider; will typically release 2% of the death benefit monthly for associated care expenses. Children’s Rider, will typically cover all current and future children to age 25 for one set premium per year.
Uses of Life Insurance
Uses of Life Insurance
Life insurance can help provide your beneficiaries with financial protection should you die prematurely; to provide for a continuation of your lost income, to pay off a mortgage or provide for living expenses, to help fund college expenses for your children. However, there are several other benefits that a life insurance policy can provide.
Most people know life insurance can provide financial protection and continuity during one of life’s most difficult times – the death of a loved one. Few people know that life insurance can also provide help while you’re living by allowing you access to the death benefit if you are stuck with various critical, chronic or terminal medical issues.
There comes a time when you may need to think about the future generations of your family. You have worked hard, accomplished your goals, and accumulated funds to support a comfortable retirement. Legacy building is a plan using life insurance to maximize the amount of money you can pass along to your beneficiaries in a way that’s also tax-efficient.
Business Life Insurance
Life insurance can provide all or a good part of the funds needed to purchase the interest of your deceased partner or shareholder via a well-crafted stock redemption or cross purchases buy and sell agreement. Or protect you, the business owner, against the financial loss of your key employee. Or protecting your business and heirs against business loans and debts to creditors.
Estate planning can be a real challenge – even with a will in place. Life insurance death benefit proceeds can provide the liquidity needed to pay off debt including estate and inheritance taxes and expenses, create an equitable inheritance between heirs and even provide protection for businesses. A good estate plan defines how you will build, preserve, and maximize your wealth.
Life Insurance Policy Review
Do you currently own a life insurance policy, but haven’t reviewed your coverage needs in a while? If so, life changes fast and the passage of time may have brought about a new job, marriage, children, a mortgage or a change in health—all reasons to review your coverage needs. A policy review is an opportunity to review your financial situation and evaluate your life insurance needs.
How Much Life Insurance Do I Need for My Family?
There are a number of different approaches. One is to simply take your annual income and multiply times 10. Another is the same ‘plus’ adding an additional $100,000 in coverage for each of your children for college expense. A third, very popular and a bit more detailed approach, is to calculate your obligations by taking the number of years that you want to replace your lost income plus adding your mortgage balance plus your other debts, funeral expenses and future needs such as college expenses less your liquid assets to provide an approximate coverage amount understanding that this is a moving target with any formula.
LIFE INSURANCE PREMIUMS EXAMPLES
Gerald Goldstein / Ph. 708-275-6781 / firstname.lastname@example.org
The premiums below are based on either a male or female at the ages noted and assume the insured can qualify at the “2nd best” preferred non-smoker/non-tobacco underwriting classification. If approved at a higher (better) underwriting class the premium would be lower and if approved at a lower class the premium would be higher. Cigarette smoker/tobacco premiums will always be higher and many companies now have special tobacco discounted programs based on type and frequency of tobacco use.
Term Life Insurance — 20 Year Level and Guaranteed Premium: $500,000 Coverage
Note; premiums for shorter coverage periods are less premium and higher for longer coverage periods
AGE 30 AGE 40 AGE 50
Male $315 $525 $1,090
Female $250 $420 $845
Male $314 $459 $1,114
Female $254 $394 $824
(for Living Benefits):
Male $340 $590 $1,280
Female $270 $475 $990
Note; the Transamerica Super and American General Select-a-Term are your classic traditional “death benefit only” programs. The ‘new’ Trendsetter LB (for Living Benefits) allows access to 90% of the death benefit for various critical, chronic and terminal medical issues on an accelerated (discounted) basis. Only a few companies offer this feature on a ‘term’ contract platform. See attached.
Permanent Guaranteed Universal Life (GUL) — premiums are level and guaranteed to age 105
Based on $250,000 Coverage
American General Secure Lifetime GUL 3 contract:
Male: $1,287 $1,664 $2,405
Female: $1,060 $1,375 $2,061
American General Secure Lifetime GUL 3 contract “with” AAS (Chronic Care) Rider:
Male: $1,516 $2,016 $2,828
Female: $1,338 $1,708 $2,571
Note; the AAS/Chronic Care Rider allows for the release of 4% ($10,000) of the death benefit monthly for chronic — custodial medical care after a 90 day elimination period. AAS benefits will reduce the death benefit by a like amount.
By Gerald Goldstein
Ph. 708-275-6781 or email@example.com