Search Results for: #3:

A Second Look at Life Insurance Myths

http://www.dreamstime.com/royalty-free-stock-images-fact-myth-red-red-sit-opposite-ends-gray-board-balanced-gray-question-mark-white-image47624429Forbes recently published a very good article about life insurance myths and facts.

Listed below are each of the myths mentioned in the article.

After each myth I made a few comments about the real facts of the situation.

Do any of them surprise you?

Myth #1: Your employer-provided life insurance is all you need.

Good points regarding employer coverage:

  1. It may not be enough;
  2. It may not be portable; and
  3. It may not be the best price.

Myth #2:  Only the breadwinner needs life insurance.

Good points regarding the stay-at-home spouse.

Money is needed to replace his or her services, as well as to allow the surviving parent to spend more time with the children.

Myth #3: Life insurance is really expensive.

People very frequently fear life insurance is too costly.

Unfortunately, a lot of this stems from brokers misleading them on prior shopping occasions.

Myth #4: My health disqualifies me from life insurance.

These are good points regarding eligibility for coverage.

I would add that since companies tend to specialize in underwriting specific risks, extraordinary offers can be made for policies that do not have coverage limits.

Myth #5: Everyone should buy term and invest the difference.

The strategy of buying term and investing the rest only works for people who really need term insurance and who can really invest the rest.

People often make changes in their financial plan as life goes along. These changes can include having an unexpected child, refinancing a mortgage, taking out an unexpected loan, or having a retirement fund underperform. All these events could call for life insurance for a longer period of time than anticipated.

In addition, people need discipline, focus, and effective management to “invest the rest”. If even one of these factors is not in place, then that strategy may very well not work.

Myth #6: You get a better deal purchasing life insurance online.

I think the Internet is not just a poor place to buy life insurance, but a poor place to even shop for life insurance.

People really have no idea how their insurability will be assessed until they deal with an expert broker.

Looking at rates on a website in the hope and prayer you qualify for them is not productive.

Myth #7: You’re too young to worry about life insurance.

Since life insurance pricing is based on age, it makes much more sense to buy it when you’re young.

In addition, buying a cash value policy early can give it enough time to accumulate significant funds.

 

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

The Roaring Twenties


Okay. You are in your twenties and starting your career. Or, maybe your child, grandchild, sister or brother is in the work world at last. A job! Time to take care of all that stuff people must when they have responsibilities. The list is long: personal relationships, business relationships, rent money, transportation, food, clothing, fun money…

… and of course, life insurance. No? Not yet?

It really makes perfect sense to pick up a policy now. The price will never be cheaper. Huge amounts of cash could grow inside the policy over time. The death benefit will protect your future spouse and children, and help you get a mortgage or business loan.

Still not on the top of your hit list? There are reasons for that. Entrepreneur and author Jason Nazar talked recently in Forbes.com about the mindset people have in their twenties. He identified many advancements people can make in their thinking to get their lives together. By following his advice, it can become easier to make commitments that really pay off – such as buying a life insurance policy.

Here are some of his tips, and examples of how they can relate to this essential financial decision.

Jason Tip #1: “Time is Not a Limitless Commodity – I so rarely find young professionals that have a heightened sense of urgency to get to the next level. In our 20s we think we have all the time in the world to A) figure it out and B) get what we want. Time is the only treasure we start off with in abundance, and can never get back. Make the most of the opportunities you have today, because there will be a time when you have no more of it.” (1)

Steve comment: This advice is extremely relevant to the purchase of life insurance. The mortality clock is ticking, even though you do not hear it so loudly when you are young. Do not take for granted your mortality, your insurability, or your eligibility for the lowest rate available. One never knows.

Jason Tip #2: “You Need At Least 3 Professional Mentors – The most guaranteed path to success is to emulate those who’ve achieved what you seek. You should always have at least 3 people you call mentors who are where you want to be. Their free guidance and counsel will be the most priceless gift you can receive. (TIP: ‘The Secret to Finding and Keeping Mentors’) Pick an Idol & Act ‘As If’ – You may not know what to do, but your professional idol does. I often coach my employees to pick the businessperson they most admire, and act ‘as if.’ If you were (fill in the blank) how would he or she carry themselves, make decisions, organize his/her day, accomplish goals? You’ve got to fake it until you make it, so it’s better to fake it as the most accomplished person you could imagine. (Shout out to Tony Robbins for the tip).”

Steve comment: Your life insurance broker should be a key person on your financial team. Make sure he is a specialist in this product. He should be an able guide into the mysterious world of life insurance underwriting, and how to qualify for the best coverage.(1)

Jason Tip #3: “Spend 25% Less Than You Make – When your material needs meet or exceed your income, you’re sabotaging your ability to really make it big. Don’t shackle yourself with golden handcuffs (a fancy car or an expensive apartment). Be willing and able to take 20% less in the short term, if it could mean 200% more earning potential. You’re nothing more than penny wise and pound-foolish if you pass up an amazing new career opportunity to keep an extra little bit of income. No matter how much money you make, spend 25% less to support your life. It’s a guaranteed formula to be less stressed and to always have the flexibility to pursue your dreams.” (1)

Steve comment: A life insurance benefit costs pennies on the dollar. It can have extremely strong guarantees. It is one of the few products that really helps you sleep at night because it can secure those dreams.

(1) Nazar, Jason. “20 Things 20-Year-Olds Don’t Get.” Forbes. Forbes Magazine, 23 July 2013. Web. 30 July 2013.

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Principles for Growth

Our principles for growth

A. Principle #1: “Helping each employee to meet his or her potential within the company.”
We will help all employees to put their talents to use for the maximum benefit of themselves and the company. This empowers them to increase their value to the business and be paid accordingly.

B. Principle #2: “Growth from the core”.
We need all employees to be proud of our company and believe in what we do, They can then serve as “good will ambassadors” for us when interacting with clients, prospects, vendors, and the general public. The training and orientation of everyone – regardless of the department in which they specialize – will include a strong foundation in prequalification/brokerage operations, as that is the core of our business.

C. Principle #3: “Mutual support among departments.”
Employees will maintain a specialization in one department yet also receive a general background in the company. They can thereby serve as viable back-ups in cases of manpower shortages.

D. Principle #4: “Mentoring as the means of passing on the core values of the company and facilitating employee career growth.”
Managers will provide personal coaching and direction throughout the business day, as well as educational meetings in the office. On occasion reading and research material will be assigned as homework. This collaboration will facilitate employee career with the core values of integrity, professionalism, service, and profit.

E. Principle #5: “Maintaining a Spirit of Adventure in the enterprise!”
Many factors influence business success. We will stay focused and committed to the goal, but keep in mind the big picture. We will all be in a learning and growth curve, so we will have to band together, learn from our mistakes, remain optimistic, and- have fun! We can celebrate the small victories that we make along the way!

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.