Life insurance is a guarantee that a sum of money is paid either on the death of the insured person
or after a set amount of time. It is an agreement between an insurer and the policy holder that a
designated beneficiary will receive the benefit in exchange for premium.
Mortgage protection is the most popular insurance that a new homeowner secures because a lot of times
when a person buys a house, they go into debt. If the breadwinner in the family dies with debt that
is not favorable financially for the rest of the family.
Most new homeowners think about buying mortgage protection because they don't want to leave their
family burdened. They do want to leave their family a financial legacy in form of a life insurance
payment that covers the amount of the mortgage in case of their death or disability. The coverage
amounts involved never go down with mortgage protection and the insurance never goes up. It is a
level premium payment and it's a level face amount.
There are some available riders on a policy. There are some accelerated death benefit riders, so if
something happens to the client, and they have a terminal illness or something unfortunate, they can
accelerate it with a chronic critical or terminal illness. This means they get a percentage of the
They can secure a family health benefit rider where something crazy happens to the person’s house.
There is a way they can write a check for common carrier accidental death benefit rider that means
the amount can double in the total amount, and if the insured dies in an accident then the
accidental death actually lets the common carrier pay up to two times the amount and then the
accidental death rider doubles it. There is also a waiver premium disability income rider is
accident only. This is an important thing, so if the proposed insured gets disabled in an accident,
then they the insurance carrier doesn't let them or doesn't make them make premium payments for two
years so the writer provides a monthly benefit for up to two years if the insured becomes totally
disabled with 180 days of accidental bodily injury or sickness.
With mortgage protection, the key thing is it is by far the most popular coverage for new
homeowners. Typically, people go into debt then buy a mortgage protection policy so they don't leave
debt for their family and their house is paid off so that's one less financial worry that the family
has in the event of a death of the proposed insured. Foresters Strong Foundation is the main product
we offer for people seeking this type of coverage.
Whole Life insurance coverage helps a family cover final expenses when a family member dies. The
average funeral in America right now is $12,000. Final Expense coverage eases the financial burden
placed on loved ones after a death of a family member. The coverage is permanent if you qualify and
your rate never increases. Your benefits never decrease. A lot of families use final expense for
Social Security income replacement in a cash accumulating account that can temporarily cover missed
payments as well. A lot of times they can come in the different types like preferred, standard and
basic with adjusted prices for each. There is no medical exam with whole life insurance, but the
healthier you are the better your rate will be.
Typically, face amounts are dictated depending upon
the carrier's terminal illness riders based on accident accelerated death benefit riders. There's no
medical exam, no blood profile, no oral swabs, none of that stuff that isn’t fun for people. It is
just simple basic health questions and, typically, it covers final expense. That’s any costs with
funeral expenses and here's a big misconception with some people: they think that if you buy a
policy for your loved one that the check goes to the funeral home. It doesn’t. It goes to the
beneficiary, so whoever the owner of the policy gets to pick their beneficiary. They get to pick who
gets the money, not the funeral home.
It's not subject to probate fees, other financial obligations
that a family faces when losing a loved one. This is a great plan because it is the kind where
benefits never go down and the premiums never go up. It's just a really standard, easy to explain
plan that can be approved with a couple of health questions. There's cash value and if you miss a
payment the cash can make your premium payments for you, so there's also all kinds of riders that
can be added and if you do surrender at risk cash value. After a certain period of time, some
companies have living benefits that live inside of it. The best final expense product we have is
Foresters Plan Right.
Children's Whole Life
Mutual of Omaha offers a great children’s Whole Life policy for ages 0 years old to 17. It goes from
a very small amount up to $50,000. It is the most standard children's whole life plan you've ever
seen in your life! Premiums never go up, the insurance amount stays the same and every single
children's whole life policy generates cash value. This means you can increase your insurance amount
at 25, 30, 35 and 40 years old; or when you have a life event such as you get married, adopt a kid,
buy a house, etc. A lot of times, a grandparent or parent buys their child a children's whole life
policy they transfer ownership so now the child owns the cash in the policy and it is building up
The person or the proposed insured, AKA the child, they can use the policy they got from
the grandparents or their parents and add to that. That means they never have to buy permanent life
insurance again, there's very minimum health questions on the application, there's waiver premium
and all kinds of cool riders you can add to the policy. It helps cover costs associated with
unexpected loss. It’s great for parents looking to provide protection for a child's future
insurability, you know a lot of people that run into health challenges down the road. If you have a
children's whole life policy while you're young, you can add to it based on your health when you
were a child and got the policy.
There is very little underwriting and very little cost, because
these are whole life insurance policies for kids. It is very affordable with only two health
questions. It has a guaranteed insurability rider, and it is one of those applications that the
grandparents can get and the proposed insured obviously doesn't have issues because they're going to
be 17 or younger. It is made for grandparents and parents to get their child set up for financial
stability moving forward. It is a great way to start a permanent life insurance policy before the
person really even becomes an adult.
These types of policies involve investing money for growth without owing future taxes on that growth,
even when it is withdrawn.
Annuities in the U.S. are primarily purchased for two reasons. First, if someone wants to move a lump
sum and they don't need it until retirement, they move this lump sum into an account that can never
lose money. Over time, they turn 65 or 70. At that point, they can elect to get a monthly check
guaranteed every single month, or until they die. This is called lifetime income. There are all
kinds of lifetime income benefit riders that you can attach to annuities.
The second main way to use an annuity is to keep a bucket of money safe from market risk. Typically,
the way annuities work is you are incentivized with a bonus to move your money. Let's say that your
product does have a bonus, so that is kind of a signing bonus, so whatever the percentage is they'll
give you a signing bonus for you letting them have your money for retirement. Let's say that you're
meeting with a client and they roll $100,000 into an annuity. You know the company might hold onto
their money for 10 years and then they'll give them a 5% signing bonus for trusting them to let them
have their money. The reason they're able to do that is because you are basically getting an annuity
that is not a liquid play, it's a long-term retirement solution. It is just a way to keep your money
The first way was the lifetime income guaranteed option and the second option is c