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There’s LIFE in LIFE INSURANCE
Many clients ask me, “So I buy life insurance, I take money out of my pocket and buy this policy and when I die someone else gets money… Really? Why would I do that?”. We buy life insurance because we love or care for someone. But that is really DEATH insurance, typically called term insurance.
So why is it called LIFE insurance? There are policies that not only provide a death benefit, but have guaranteed cash values and in some policies tax-free dividends. And yes, these policies have higher premiums! So why would I want one of those policies? Because over the course of your lifetime things happen.
From my experience in the wealth management business, I can provide you some real-life examples. In most of the cases below, they may have questioned buying life insurance, but the time came when they appreciated their value.
- Several clients have used their cash values to fund college education for their children. That’s LIFE.
- I had a client and good friend who was diagnosed with cancer, and in the day of HMO’s he asked the HMO if he went to his hospital of choice, would they pay half? They said no. He asked if he went to his doctor of choice, would they pay half? They said no.When he came to my office, I asked how he was, and he informed me of the cancer diagnosis and was frustrated with the HMO response. I asked how much he needed and the answer was $30,000. We looked and he had $60,000 in cash values. I told him and his family to go to his hospital and doctor of choice. He did and has survived his cancer diagnosis for years. That’s LIFE.
- I personally know of a 70-year-old who used his tax-free dividends in his policy to make a down payment for a lake home for their enjoyment in their later years of life. That’s LIFE.
- Going back in history, Walt Disney borrowed from his life insurance in 1953 to help fund Disneyland for his first theme park. This was after his friend Art Linkletter nor his banker would lend him money. That’s LIFE, and life enjoyed by many for years.*
Here at Virtus Wealth Management, we know and understand the value of various types of life insurance. Call us today so we can help put some LIFE in your life insurance.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice.
For information about specific insurance needs or situations, contact your insurance agent.
This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you.
Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices.
Insurance products offered through LPL Financial or its licensed affiliates.