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Other Added - Term versus Permanent Life Insurance - What's Right for You?
Effective communication skills are essential to successful business development. Yet they’re often under-emphasized and sometimes completely ignored. Why? Because we communicate so much and so often (approximately 20,000 words per day) we often take it for granted. But regardless of how good your product or service is and how much expertise you have in your area, it all goes to waste unless you can communicate it to others. When you actually get the chance to sit down with a potential client and discuss doing business together, don’t blow it by committing one of these big five business development blunders.1. Talking about your product or service. Infodumping is simply telling someone all there is to know about what you’re selling. You probably cover how long you’ve been in b
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for
Trade shows are essential for the growth of any industry. It is a great venue for customers to meet the industry leaders. For exhibitors, it may mean a lot more. Participating in a trade show does not only let the company come face-to-face with potential clients, it is also an opportunity for extensive market research. Trade shows place you under the same roof with your direct competitors, so you get the chance to learn more about them and how clients react to their offerings. Of course, trade shows are also the place for you to promote your business.Here are some steps to ensure you grab your potential clients' attention before anyone else does:1) Get the news out Weeks, even months, before the trade show you should already be looking for ways to market your
That brings up the term versus permanent life insurance consideration.
In some cases, the need for insurance is temporary—maybe for the next 20 years until the house is paid for and the kids have left the nest. In other cases, the need may be for a longer term—maybe until a business interest is sold, or the need may be for a lifetime--to ensure estate taxes can be paid[1] or to provide cash to equalize an estate, and so on.
When Should You Consider Choosing Term Life Insurance?
Term life insurance is much like a starter home or apartment. It is basic and inexpensive, and that’s all some people will ever need. But as with starter homes, there are variations of term life insurance that offer room to grow as needs change. There are also fixed-duration options, where the amount you pay is guaranteed, and other options where the amount adjusts—just like a mortgage.
In other ways, term life insurance is like renting—you pay money every month[2], on time, or you lose your insurance (or apartment). Like some rentals, term insurance has a “lease with option to buy” provision. This can be the best of both worlds when you can’t afford the permanent insurance (or home) just yet, but know you will be able to buy it in the next few years. If you buy term insurance just to cover a specific time period, such as the years when the children are young, it makes sense to select a plan that will last, at the same premium amount, for that entire period. But, since nothing ever seems to go as planned, we usually recommend that our clients buy “convertible, level premium” when they choose term life insurance.
What is level premium, convertible term life insurance?
This is a plan that is inexpensive while it is used as a term life insurance policy, and the premiums stay the same for the selected period (anywhere from five to thirty years or longer). But the convertible aspect is what makes this option such an attractive choice when money is tight. Convertibility is simply a feature the insurance company offers that allows a person to convert part or all of the policy face (pay-out) amount to a permanent insurance plan. This conversion can normally be done over a period of years, bit by bit.
Converting to this option as cash flow improves is a great way to get the most insurance benefit for your dollars. So, who really buys term life insurance? Lots of people:
• Families and single parents with children
• Dual-income couples
• Small business owners
• People who are caring for a disabled family member
• People needing permanent life insurance who can’t afford the cost
• Divorcing couples who need life insurance as part of the settlement
Term life insurance is inexpensive, flexible, and often an excellent interim solution. But it has its downside, too. If you miss a premium payment, you no longer have life insurance. There is no cash value to carry a missed payment. If you decide you no longer want the insurance, you get nothing back, even after years of regular payments. There is no tax-favored accumulation of cash.
When Should You Consider Choosing Permanent Life Insurance?
Permanent life insurance includes a number of insurance plans that have a major feature in common: If you pay enough money for enough years, the plan is “permanent”—it will last until the person being insured dies or reaches an age such as 100, when the full amount will be paid by the insurance company. The way insurance companies can make this type of insurance last is by charging a premium that covers two main things:
• The actual cost of the insurance, plus other expenses (as is the case with term life insurance)
• An additional, much larger amount that accumulates and earns dividends (similar to interest[3]) and grows year by year[4]
Permanent insurance has several features not available with term (unless you convert it):
• It has a cash value and you can borrow money from it.
• You can pay extra money and pay the policy up sooner (assuming the return on your cash value is high enough[5]).
• As long as there is enough cash value, you can miss a payment (in most cases).
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for
Many people have trouble finding ways to improve their resume. Once you’re in a job, it’s often hard to get the exact tasks that you want assigned to. You may be very good at what you do – which makes it even more difficult to branch out and advance, because they won’t be able to afford to lose you.One of the best ways around this is to volunteer in your spare time. Your resume needs to be constantly improving – don’t sit around doing the same old thing, especially if you are considering switching lines of work. By volunteering for local organizations, you can often get relevant experience in areas that your employer would never risk assigning you work. Many local organizations are desperate for help, and will take anyone at anything. It’s often very easy to get senior positions on
In other ways, term life insurance is like renting—you pay money every month[2], on time, or you lose your insurance (or apartment). Like some rentals, term insurance has a “lease with option to buy” provision. This can be the best of both worlds when you can’t afford the permanent insurance (or home) just yet, but know you will be able to buy it in the next few years. If you buy term insurance just to cover a specific time period, such as the years when the children are young, it makes sense to select a plan that will last, at the same premium amount, for that entire period. But, since nothing ever seems to go as planned, we usually recommend that our clients buy “convertible, level premium” when they choose term life insurance.
What is level premium, convertible term life insurance?
This is a plan that is inexpensive while it is used as a term life insurance policy, and the premiums stay the same for the selected period (anywhere from five to thirty years or longer). But the convertible aspect is what makes this option such an attractive choice when money is tight. Convertibility is simply a feature the insurance company offers that allows a person to convert part or all of the policy face (pay-out) amount to a permanent insurance plan. This conversion can normally be done over a period of years, bit by bit.
Converting to this option as cash flow improves is a great way to get the most insurance benefit for your dollars. So, who really buys term life insurance? Lots of people:
• Families and single parents with children
• Dual-income couples
• Small business owners
• People who are caring for a disabled family member
• People needing permanent life insurance who can’t afford the cost
• Divorcing couples who need life insurance as part of the settlement
Term life insurance is inexpensive, flexible, and often an excellent interim solution. But it has its downside, too. If you miss a premium payment, you no longer have life insurance. There is no cash value to carry a missed payment. If you decide you no longer want the insurance, you get nothing back, even after years of regular payments. There is no tax-favored accumulation of cash.
When Should You Consider Choosing Permanent Life Insurance?
Permanent life insurance includes a number of insurance plans that have a major feature in common: If you pay enough money for enough years, the plan is “permanent”—it will last until the person being insured dies or reaches an age such as 100, when the full amount will be paid by the insurance company. The way insurance companies can make this type of insurance last is by charging a premium that covers two main things:
• The actual cost of the insurance, plus other expenses (as is the case with term life insurance)
• An additional, much larger amount that accumulates and earns dividends (similar to interest[3]) and grows year by year[4]
Permanent insurance has several features not available with term (unless you convert it):
• It has a cash value and you can borrow money from it.
• You can pay extra money and pay the policy up sooner (assuming the return on your cash value is high enough[5]).
• As long as there is enough cash value, you can miss a payment (in most cases).
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for
If you’re looking for a conference or event giveaway that will be useful and effective in getting you the exposure that you need, conference bags and carrier bags for conference and event items might be the perfect answer. Several years ago, I attended a local event. The organizer escapes my mind, and I don’t recall even what the purpose of the event was. I do, however, remember one thing – the colorful and roomy white, red and blue carrier bag that was handed to me as soon as I entered. I remember the name of the bank that supplied it, I remember how useful it was to have it with me, and even though the bag was only heavy duty plastic, I remember using that bag for months after the conference whenever I needed something quick to carry with me. That’s quite a lot of mileage to get out of a
Converting to this option as cash flow improves is a great way to get the most insurance benefit for your dollars. So, who really buys term life insurance? Lots of people:
• Families and single parents with children
• Dual-income couples
• Small business owners
• People who are caring for a disabled family member
• People needing permanent life insurance who can’t afford the cost
• Divorcing couples who need life insurance as part of the settlement
Term life insurance is inexpensive, flexible, and often an excellent interim solution. But it has its downside, too. If you miss a premium payment, you no longer have life insurance. There is no cash value to carry a missed payment. If you decide you no longer want the insurance, you get nothing back, even after years of regular payments. There is no tax-favored accumulation of cash.
When Should You Consider Choosing Permanent Life Insurance?
Permanent life insurance includes a number of insurance plans that have a major feature in common: If you pay enough money for enough years, the plan is “permanent”—it will last until the person being insured dies or reaches an age such as 100, when the full amount will be paid by the insurance company. The way insurance companies can make this type of insurance last is by charging a premium that covers two main things:
• The actual cost of the insurance, plus other expenses (as is the case with term life insurance)
• An additional, much larger amount that accumulates and earns dividends (similar to interest[3]) and grows year by year[4]
Permanent insurance has several features not available with term (unless you convert it):
• It has a cash value and you can borrow money from it.
• You can pay extra money and pay the policy up sooner (assuming the return on your cash value is high enough[5]).
• As long as there is enough cash value, you can miss a payment (in most cases).
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for
In running a company, it's essential to recognize that your suppliers are your partners. Without the goods and services they provide, you would not be able to run your business. Treat them as the valuable allies they are and you will enjoy greater success.Treating a supplier with respect means being the kind of custumer you yourself would like to have.- Pay your bills on time, every time. If you know you will be late with a payment, communicate with the supplier immediately.- Be honest and courteous in any negotiations. Look for ways that both sides can win in any deal rather than seeking an advantage at the supplier's expense.- Honour any promises you make to a supplier, such as when you will get back to them about a purchasing decision.By doing s
When Should You Consider Choosing Permanent Life Insurance?
Permanent life insurance includes a number of insurance plans that have a major feature in common: If you pay enough money for enough years, the plan is “permanent”—it will last until the person being insured dies or reaches an age such as 100, when the full amount will be paid by the insurance company. The way insurance companies can make this type of insurance last is by charging a premium that covers two main things:
• The actual cost of the insurance, plus other expenses (as is the case with term life insurance)
• An additional, much larger amount that accumulates and earns dividends (similar to interest[3]) and grows year by year[4]
Permanent insurance has several features not available with term (unless you convert it):
• It has a cash value and you can borrow money from it.
• You can pay extra money and pay the policy up sooner (assuming the return on your cash value is high enough[5]).
• As long as there is enough cash value, you can miss a payment (in most cases).
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for
There are many people who are trying to make a living online from home. It can be a lot more difficult then most people realize when they first get involved. Here are some tips on getting started.First, learn all you can about the methods to earning income online. There are probably hundreds of different ways to make money online. Some require a great deal of effort and some don’t require much effort at all. Be honest with yourself about how much time you will have to spend developing your new business. Don’t start something that is more involved then you have time to invest. You won’t make any money and you’ll quit. Make sure that the amount of time you have available fits in with the business you are working with.Do your research ahead of time. Look into all the possibiliti
• There are tax advantages to accumulating money inside an insurance policy.
So who uses permanent life insurance?
• People who need to know their coverage will last even if they miss a payment here and there
• People who need to know their insurance will be around to cover estate taxes and provide cash for liquidity needs at death
• People who like the idea of the tax advantages
• People who want supplemental retirement income
• People who want another way to save money for college
Many people are good candidates for permanent life insurance, and many others will be, so convertible term can work for them. Maybe it’s time for us to weigh the options and run the numbers to see what is right for you.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696.
Respectfully,
P.S. If there is a topic or question you would like to have explored in one of my newsletters, please feel free to submit any questions or topics for discussion.
[1] Taxes may well return on estates of $1 million+ in 2011.
[2] Or other set period such as quarterly or annually.
[3] This has been simplified since there are many other costs in an insurance policy.
[4] Although in the case of VL/VUL, this growth is not guaranteed.
[5] This only works with so-called “over funded” UL policies, and even then circumstances could change and additional payments might be needed to keep the policy in effect.
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