Life Insurance
One of the most underappreciated areas within many financial plans is the area of Life Insurance. Any good financial advisor affirms however, that a solid and sound life insurance plan is the foundation of any good financial plan. There are reasons for the under valuation of life insurance amongst certain segments of society.
Quick History Of American Life Insurance:
First, in May 1896, Frederick L. Hoffman, a statistician at the Prudential Life Insurance Company, published a 330-page article in the prestigious Publications of the American Economic Association intended to prove—with statistical reliability—that the American Negro was uninsurable. Race Traits and Tendencies of the American Negrowas a compilation of statistics, eugenic theory, observation, and speculation, solicited by the Prudential in response to a wave of state legislation banning discrimination against African Americans. Endeavoring to cut out their own piece of real estate due to the success of Metropolitan Life, the Equitable, and Mutual Life which were the top three companies in the world, Prudential Life Insurance Company became known as one of the biggest and the best American life insurance companies by selling small “industrial life” policies to families and individuals collecting premiums for those policies weekly. For blacks it was said that not only were they an actuarial risk, but they were also a financial risk, therefore the initial policies were much smaller as compared to their white counterparts and collection rates had to be maintained. Other companies mimmicked Prudential’s practices and reduplicated as financial standards of the industry. Therefore for many years life insurance was used as a tool of discrimination.
However since the adherence to financial regulations in the 195o’s and later the Civil Rights Act the pendulum (and lawsuits) swung in favor of individuals causing companies to eliminate, some reluctantly, discriminatory practices in underwriting and premium charges.
Why Life Insurance Is So Powerful:
Life insurance is the purchase of money at a discount. Additionally life insurance is one of the only financial tools that offers a combination of tax advantages. Under normal circumstances, cash values offer tax deferral, death benefits are tax free and withdrawals from the policies up to the basis (premium paid) si calculated under the FIFO (First In First Out) accounting method, therefore in most cases, withdrawals are also tax free. Not to mention, that if a policy is owned the right way ie; properly titled, there may never be a tax payable on either the benefits or ownership of a policy. This is truly a win-win situation for any family, or small business owner wanting to retain and obtain the greatest value of the dollar at times when those dollars are needed the most.
What Type Of Insurance Is Best?
There is a variety of life insurance and each type of insurance can be tailored to meet individual needs. For instance, when liabilities are high and cash is slim, term insurance may best suit and fit the need. Businsee owners may be in the same situation, but may want to be able to leverage their assets at a later date, in that case a term insurance with a premium cash back feature may be best suited to meet the need. In other cases individuals may need to increase asset values over time and create a tax free reserve of cash or an income stream; only cash value or whole life insurance will meet that need. Then, like many wanting to maximize dollars, a flexible and market growth sensitive life insurance may make the best sense for the individual or business financial need, in that case an Equity Indexed Universal type of policy may be best suited.
One thing is for sure, there is no ONE policy that fits and suits all needs. Such myths are the height of insurance malpractice and do not best serve the vast and diverse array of needs that people and business have.
I’m Covered At Work:
Current statistics say that only about 60% of all working individuals are covered through and employer plan. In the case of group coverage employers generally provide the first $50,000 of coverage for free. Then with the advent of workplace voluntary benefits, life insurance in some form has never been more easy to obtain. What happens when there is a separation of service? In many cases benefits are either lost or are unaffordable to maintain. these events usually occur at the most inopportune time and jeopardize the financial security of all family members. No matter what, individuals should be encouraged to purchase stand alone plans over which they maintain complete and unencumbered control. Life insurance is about providing the necessary benefits at the right time.
The Dunamis Difference
A good life insurance plan provides, peace of mind, financial security for the family, security for the business and employees of the business, and does this in the most direct, tax free and unencumbered manner possible. Another vital part of this is securing the right plan at the right price. Dunamis has a multinational network of companies and carriers with the lowest rates in the industry. With our field underwriting skills, knowledge of client needs and ability to secure the best policies in the market, we offer a dynamic combination, that is highly competitive and unlikely to be surpassed.
Call Now For A Quote:
Dunamis has access to over 50 of the top life insurance companies to help find and secure the best deal for you. Please contact us either by phone (309)688-6599 or by email at dunamis1@netzero.com for a quote. Please be prepared with current information on medical conditions and additional information such as height, weight and family medical history. We can normally have a quote back to you same day. If you do not know what type of insurance is best suited for your situation, please be prepared to spend 5 minutes so that we can evaluate your situation and do a needs assessment and a financial profile. Larger cases $1 Million or more will generally require more information during the underwriting process so detailed information is generally not required for a quote. Unlike other online life insurance groups, you get the best possible price, an agent and personalized and ongoing service.
