Return of the Return of Premium (or How to Get Your Money Back If You Don't Die)

Every once in a while I'll be talking with a client about life insurance and the client will say something to the effect of "If I don't die, do I get my money back?"  Typically, I respond with "If you don't get in an automobile accident, do you ask your car insurance company for a refund?"  Most of the time, I get a funny look.

Now I can give a different response.

One of our favorite insurance carriers has brought back the "Return of Premium" rider for their life insurance policies and it works like this:  If you outlive your policy, you can have your money back.  Pretty simple. 

In the name of full disclosure, this rider can nearly double the premium.  But some folks will still want it and those who do consider it to be a savings plan.

These policies can be written as 20 or 30 year terms for up to $250,000.

What would you do with all that money?  Pay off business loans?  Annuitize it for an income stream?  It's your choice! 

What Do You Think Life Insurance Costs?

According to a recent survey by LIMRA and Life Happens, cost is the reason most Americans give for not owning life insurance.  However, 80% of Americans misjudge what the premiums are.  In fact, millennials overestimate the cost by 213% and Gen X'ers by 119%!

Think to yourself "How much is in my budget to make sure my loved ones are taken care of?"  How much are you willing to spend to secure your family's finances?  $20 a month?  $50?  $100?

This is where we make it easy for you.  Simply go to our website at SurfFinancialBrokers.com and find a policy that fits in your budget.  Our quick and easy quoting system will show you policies with all of the major carriers.  There's a good chance you will find a great policy in your price range.  Simply click on "Request Application", answer a few questions and one of our representatives will contact you within one business day.

At Surf Financial Brokers, it's No Pressure Insurance!

A Life Insurance Agent's Second Biggest Problem

Let's face it, no one really wants to buy life insurance.  I'd rather buy a car or a new smart television or a cool phone or a trip to Hawaii.  Wanting something is great, but is it a priority?

The second biggest problem life insurance agents have is telling a client something they already know, which is that their priorities are all mixed up and taking care of their family in the event of an untimely death should be at the top of the list.  If I died tomorrow, a car or TV or phone or a trip won't insulate my family from debt and loss of income.

So the next time you talk with your life insurance agent (hopefully us), know ahead of time that we are looking out for your family's interest, not your short-term purchases.

And in case you were wondering, the number one biggest problem is getting a client.  If you know of anyone that could use life insurance (newlyweds, new parents, just bought a home), let them know about us and our 30-second life insurance quotes, which can be found here.

Insurance For Your Life Insurance

There's currently a television commercial that mentions how a family depends on the income of the husband (or it could be the wife, mom, etc).  The question they ask is "How would your family make it without your paycheck?"

At first glance I thought they were talking about disability insurance since that truly is insurance for your paycheck.  However, this was an advertisement for life insurance.  And it is true that your family depends on your paycheck and would be in big financial trouble if you suddenly died.

But what if you didn't die?  What if you survived and you were disabled? The truth is that this could be an even worse situation for your family.  Not only would you not be able to work, but you may need a caretaker.  Like a client once told me, "If I'm dead I'm out of the picture, but if I'm disabled, I still have to eat."

And the last thing you need at that point is not being able to afford your life insurance.  Which is why we at Surf Financial Brokers stress the importance of an optional Waiver of Premium (WP).  The WP rider pays your life insurance premiums for you in the event that you are disabled and can no longer work.  Insurance on your insurance for a small additional charge.

You Can Figure Out Life Insurance

Many times when meeting with a client, I'll hear, "I don't understand anything about life insurance so I'm going to have to trust you with this." 

Even though I greatly appreciate the client's trust, I still take the time to explain in easy-to-understand terms all the different types of life insurance and what they do that sets them apart from one another.  Let's do this quickly and you'll understand (in general terms) life insurance in a few minutes.

First, there are 2 main types of life insurance:  Term and permanent.  

Term life insurance is just a death benefit for a certain amount of time (10, 20, 30 years) that you decide upon when purchasing.  That's all it does.  No cash value, no borrowing against it, nothing. Term life insurance is very reasonably priced. 

Permanent life insurance is where things get a little tricky because there are differing kinds of permanent coverages.  The idea is that they all have the potential to build cash value.  How they do that is the difference.

Whole life - Very safe, very slow growth, most expensive to purchase later in life.

Universal life (traditional) - Growth based on interest rates.  Less expensive than whole life but don't expect a lot of growth in a low-interest environment.

Variable universal life - Growth based on investment accounts.  Premiums are comparable to traditional universal life but can lose money.  Can only be purchased by a securities licensed agent.

Indexed universal life - Growth based on an index that reflects the market.  Can be a steady and quick grower of cash value with a floor (minimum) and a cap (maximum).  

That wasn't too hard to understand was it?  The key to it all is that you have enough coverage to help your family if you were to die too soon and to make it affordable.  If you have any questions, give us a call or look us up at Surf Financial Brokers.  

How You Can Plan For Long Term Care Costs

What are the images that come to mind when you think of Long Term Care (LTC)?  For most people, it's not something they want consider for themselves or a loved one.

There are two types of burdens when a family member is in a LTC situation:  financial and emotional.  We can't help you with the latter, but we can help you plan for the financial part.

Of course, there are LTC policies out there and they can be pricey.  The insurance industry has recently starting developing life insurance plans which can be used for LTC expenses as well.  Again, they can be a bit pricey.  What's the alternative?

One product we've come across is a Disability Income policy with rider that can help cover LTC costs.  And the good news is that the rider is very affordable.  When you consider that you need a disability policy anyway, why not cover some, or all, of your LTC needs while you can?

Give us a call or look us up on the web and let us help you.

Don't Get Overwhelmed With This Stuff

Occasionally someone will tell me that they just don't understand the differences between term, permanent, whole life, universal or indexed life insurance.  Throw in annuities, disability insurance, and other financial products being sold out there and even us agents get confused.

As I have mentioned before, there are hundreds, if not thousands, of products from over 1100 companies.  My philosophy is that every one of those products has a need somewhere, but for the vast majority of our clients, simple is better.

We want our clients to be as comfortable with a financial product as possible.  Whether we are discussing the benefits of a life policy or the fees in a retirement plan, there should be no confusion.

And if someone tells you that a products has "no fees", that implies that the financial institution isn't making any money.  Of course, that isn't the case either.

If you have questions about a product, give us a call or drop us a line on our website.