ThE FIvE dO’S ANd dON’TS FOR ThE lIFE INSURANcE BUYERcompany you would want to consider on a page or two sorted by cost.
This same resource can also be used for permanent insurance. However,
there are many variables that it will not show you. It will not show all
the different riders that you may or may not be interested in.
You may want to show a cash rollover from an existing policy that is
outdated and not guaranteed, you may want a long term care rider of
some kind, you may want a critical illness rider, you may want a ‘waiver
of premium’ rider or many other choices that you really would need
to discuss with an agent familiar with various companies and choices,
since every company is different as to what they offer and how the vari-
ous choices work.
I said earlier that I have seen many thousands of existing policy state-
ments. It is my opinion that a lot of the policies already in existence
need to be reviewed and replaced with new coverage. If your policy
was not very recently issued then you should have someone with vast
knowledge of companies and products take a look at what you have – to
make sure it is the best fit for your needs.
A lot of existing policies that I see are not guaranteed or the premium
being paid is too much for the coverage. Most of the time you can buy
a new policy that is guaranteed and pay a lower premium than you are
paying currently. I strongly suggest if you have existing coverage, espe-
cially permanent coverage, that you review what you have to make sure
you are getting the biggest bang for your hard-earned buck.
With the explosion of long term care cost in the last few years, and the
huge cost increase for stand-alone policies to pay for this cost, some life
insurance companies have developed some very nice riders you can pur-
chase that are very affordable to help with this huge risk most people have.
In America, 1 out of 2 people will need some kind of long term care
assistance in their lifetime. But the cost of stand-alone policies has sky-
rocketed and some companies have even completely stopped offering
policies at any cost. The companies that remain are no longer offering
guaranteed premium policies. It is my opinion that the cost of care will
continue to escalate at an alarming rate, and the companies that remain
for stand-alone coverage will be forced to raise their premiums to a
point that most people will have to cancel their coverage – because they
will no longer be able to afford it.