Lifetime Insurance

Lifetime Insurance!

Lifetime Insurance could have a number of common names depending on the agent or broker that you are speaking with, so for this article we are going to explain to you the product that we consider to be lifetime insurance. 

Another name for this type of insurance would be secondary guarantee or no lapse guarantee Universal Life Insurance.  This product was designed to have a minimum premium for life which could mean to age 100, 110 and sometime to age 120.  The actuaries amortize what the minimum premium would be to keep the policy in force till you die.  What this does is in its simplest terms provide you with permanent life insurance coverage with term like premiums.  Term Like rates, lets be clear they are not term premiums and will be higher but much cheaper and more affordable than a current assumption or cash value type of Universal Life or Whole Life type of product. 

Lifetime Insurance types of policies are sold very often in estate planning cases using a Survivorship Universal Life policy.  They are also heavily used in wealth transfer sales, like Annuity Maximization, Stretch IRA or B-Trust funding sales.  Last but not least this product over the last few years has become the product of choice when a planner performs what’s called a policy review on a current in force policy.  Very often with the new product you can lower your premium and or increase your face amount, in some situations you may be able to do both especially if you have cash build up in your old life insurance policy.  Then you may consider a 1035 exchange as a sort of down payment on the new policy and this way if you have a capital gain in your old policy you will not have to pay tax.  With the 1035 concept make sure your old policy does not have any loans on it then you would want to consult with a life insurance professional to explore your options. 

Lifetime Insurance policies have the potential to save you some of your hard earned dollars!

We love these new products and they have been able to help many consumers lower their current premium payments and help there new policies to be very inexpensive comparatively to the old one (sometimes) yes it doesn’t always work out.  For example some older whole life policies are paying such high dividends that you just cant do anything with a new secondary guarantee product.  So it really all depends on your situation and what your goals where when you began the plan and what they are now. 

We here at the lifeinsurane-pros have helped many families in exchanging there old under performing policy for a new guaranteed no lapse type of plan.  The first step is to get an in force ledger from your current carrier and then we can analyze and run new illustrations with the new products.  Then we can apply with the carrier and see if we can get you underwritten for the best possible rate class.  If everything comes back positive well then you might just really like the savings and guarantees in your new life insurance policy.  Lifetime insurance also comes in the form of Survivorship Life Insurance typically used in estate planning applications.