Life Insurance you Don't have to Die to Use
A few life insurance companies have been using Advanced Befit Riders (ABRs) for decades, and most carriers off this rider with either included or at a minimum charge. A policy with an ABR allows the insured to access part or all of the death benefit if you experience a qualifiying terminal, chronic, or critical illness or injury. In most states, you can use the benefit for any purpose including, household expenses, home modifications, nursing home care, home care, adult day car, paying bills or quality of life expenses. Each company has it's own terms and conditions.
Is ABR available on a term policy? Yes. Most insurance companies have this rider even on term policies, greatly increasing the value of purchasing term.
Term Insurance
When purchasing term insurance, it is important to obtain a policy that can convert to permenant coverage. In the event that you become uninsurable or have a shortened life expectancy, you don't want to lose your coverage because your policy expires and you cannot continue coverage by converting to a permenant policy.
Tap In to Your Death Benefit for
Chronic, Critical Illness or Injury
Indexed Universal Life
Although the name implies, your money is not in the market. After high market growth in the 80's consumers wanted to participate in the market and many surrendered their life policies to put the cash value in the market for a higher return. This worked for a while, but they soon learned that the market will correct every few years. Over time the market will have a steady climb.
The insurance industry responded and designed a product that allowed consumers to participate in the gains of the market, but still have the protection of the long term conservative porfolios and tax benefits of life insurance. Indexed Universal life arose. IUL is not for everyone. Because of it's flexible nature of allowing the policy holder to decide how much premium they want to pay, and what index they want their money tied to, it is not for the impulsive minded. If an IUL is thought of as a long term tax advantaged retirement plan with extra benefits, then they will be rewarded.
For those that prefer the insurance company to make all decisions, then a traditional whole life is a better way to go.
"Max Funded" IUL
When using an IUL as part of your retirement portfolio, it is important to design the policy for cash accumulation, not to maximize death benefit. If there is a temporary need for a high amount of death benefit for family or business needs, then purchase a term policy in addition to your IUL. The short video below will give you an overview of how a max funded policy works.