“It’s Guaranteed to Last Forever or at Least as Long as You Do!”
Term life insurance is extremely popular because it is very inexpensive when compared to traditional whole life insurance. However, most term policies purchased today are level plans which offer fixed guaranteed rates for only a specified period of time usually 10, 20 or sometimes up to 30 years. Unlike most whole life policies, premiums for level term insurance eventually increase. Lifetime guaranteed term, also referred to as guaranteed universal life, is a combination of level term and whole life insurance providing affordable coverage at a definite rate for your lifetime. In this sense, lifetime guarantee term insurance captures the best of both worlds. Following are some of the reasons why you should consider term insurance guaranteed for your lifetime!
- You Won’t Outlive the Coverage. Level term insurance usually does not extend out to your life expectancy. Most insurance companies limit the ages for individuals considering level term insurance. For example, if you are 65, you definitely cannot get a 30-year term policy and there are only a few providers that will write a 20-year level term plan. Universal life or lifetime term is guaranteed!
- Cheaper than Traditional Whole Life Insurance– Term insurance with a lifetime guarantee is the cheapest form of guaranteed life insurance. Unlike whole life insurance, these policies are not designed to build significant cash value and therefore are priced accordingly. If you are looking for “whole” life insurance without frills, term insurance for life is the way to go.
- Rates Will Not Increase Lifetime term insurance offers guaranteed rates that will not increase as long as you pay your premiums on time.
- You Will Leave a Legacy. Life insurance has been a great way to pass wealth tax free for a long time. Many attempt to leave a legacy with level term insurance but end up outliving the fixed rate period and eventually drop the insurance. With lifetime term insurance, you can guarantee that money will be available regardless of how long you live. Your children can pay off debts, settle your estate, and have money to start a business or send your grandchildren to college.
- Paid-up Insurance Guaranteed for Life. Most companies offering lifetime term or guaranteed universal life will allow you to pay-up your policy and still get guaranteed coverage for life. For example, you can design your policy to have premiums payable to age 65 with no additional premiums required thereafter. Obviously, if you are shortening your premium period, you will pay more over that period. However, having the option to purchase a paid-up policy is very attractive.
- Estate Planning. Let’s face it, if you are privileged enough that your net worth exceeds the current threshold of the estate tax exemption, your estate will eventually have to write the federal government a big check. No one wants to pay these punitive taxes but they must be paid, usually within 9 months. One of the best ways to pay estates taxes is with life insurance proceeds and lifetime guaranteed term may be the cheapest way to pay them depending upon your circumstances.
- Business Succession Planning. Every business owner needs to have an exit strategy in place because transitioning a business can be quite complicated. Life insurance is a great tool for protecting businesses. Properly structured lifetime guaranteed coverage can assure the continuation of your business in the event of your death and guarantee that your family receives the fair market value of your interest in the company.
- Special Needs Planning. If you have a child or grandchild with a disability or special need, lifetime guaranteed term will provide the necessary funds to take care of loved ones who cannot care for themselves. Life insurance can provide the funds needed to look after your loved ones long after you are gone. Additionally, it is the cheapest way to guaranteed funds are available when they are needed most.
Life insurance is a crucial part of any financial plan and there are several different types of life insurance available. Lifetime guaranteed term insurance is unique in that it combines the strengths of term insurance and whole life insurance to offer a low cost coverage that you will not outlive. You should definitely consider lifetime term if you are seeking inexpensive guaranteed insurance for life, trying to leave a guaranteed legacy, providing cash for estate planning or trying to assure a seamless transfer of your business. For questions on lifetime guaranteed term or to receive a custom life quote, call MEG Financial today at 877-583-3955.