In PART 1 we had a brief introduction to the 7 Things You Need To Know BEFORE You Buy Life Insurance. Here's the REST OF THE STORY.....
Review PART 1 if you'd like before moving on here...
Life Insurance Need-to-Know #4
Once you buy it – KEEP IT until your reason for buying it no longer exists
Too many times I’ve seen people buy life insurance: Either term or permanent and then, for some reason, let it drop. Usually it’s for one of a couple of reasons.
They initially got in a little over their heads with too big of a monthly premium and it’s finally caught up to them.
They didn’t buy for the right reasons.
Make a commitment when you get your life insurance to make it comfortable on your budget so you can keep it with no financial pressure. And commit to keep it until the reasons for purchase no longer exist.
For example, if one of your reasons is to ensure that your kids complete college, and then keep it until they’ve all walked across that stage and received their diploma. (Or at least until you’ve made that last tuition payment.)
If you don’t buy this way, you’ll just be wasting your money if you keep the policy for several months and then quit.
Here in the Dennis Volz Agency, we want you to be comfortable with your insurance.
We’ll explain your LIFE INSURANCE options in simple, everyday language that you can understand.
We strive to personalize every insurance policy to be sure you have exactly what you need and want.
NOTHING MORE; NOTHING LESS
Life Insurance Need-to-Know #5
Let Uncle Sam help you pay your premiums
When you purchase permanent life insurance, the money accumulates tax-deferred. You end up saving even more because the accumulation is tax favored. This could make you think that even the Federal Government thinks that life insurance is a good idea!
Life Insurance Need-to-Know #6
Don’t touch the Nest Egg
Money that you contribute to you permanent life insurance can build a significant amount of cash over time. This money is available to you. Let me encourage you that as those numbers start to grow, LEAVE IT ALONE!
Here’s a good rule of thumb to govern your dipping into the nest egg.
NEVER TOUCH THE NEST EGG EXCEPT FOR AN EXTREME EMERGENCY OR A PHENOMENAL OPPORTUNITY.
No, a year-end sale on a Corvette doesn’t count as a PHENOMENAL OPPORTUNITY! Nice try !
Life Insurance Need-to-Know #7
Review, review, review… But only once a year or so
Every year that you’re living with either too much insurance, the wrong kind of insurance or not enough, you’re probably wasting some money.
A simple review that can take as little as 10-15 minutes over the phone with your agent can prevent this. Sometimes changes in your life can be so much and so harried that you don’t even realize when things affect your needs for life insurance. An agent who’s willing to spend the time required with you and asking the right questions can uncover these changes and often save you hundreds of dollars in the process.
A FEW RANDOM QUESTIONS...
What about my GROUP insurance at work?
Group insurance is probably the LEAST EXPENSIVE of all life insurance policies. Sometimes it’s even FREE! (Well, paid for by your employer anyway) My advice is TAKE IT! But don’t depend on it. Count it as just a little extra, but in addition,
Have your own plan that YOU CONTROL.
Group insurance can come and go. The company can “change the deal.” You could change jobs and be with out coverage for a time. Maybe the new job doesn’t offer group life insurance.
I’ve seen people become uninsurable for health reasons, change jobs and then they’re unable to replace their group insurance. Keep your life insurance under your control not your employer’s or other circumstances beyond your control.
Can Life Insurance double as my RETIREMENT?
Permanent insurance should NEVER be a substitute for a good retirement plan. Any agent that tells you to dump hundreds of dollars a month into a permanent life insurance plan to fund your retirement before you’ve established a good, regular investment program outside of life insurance for your retirement should be questioned.
The permanent portion of your life insurance does give you flexibility in your retirement years. You can keep the insurance, sometimes stop paying the premiums (and continue to be insured), draw on some of the cash value if you need to and a host of other options. But life insurance should never be your main vehicle to retirement planning.
A word about beneficiaries…
The beneficiary is the person who receives the proceeds of a life insurance policy at the death of the insured. Carefully structure and word your beneficiary clause. You can cause big problems if you’re thinking one thing and actually say something else in the beneficiary section of the policy.
Carefully discuss this with your agent. Something as simple as a Per Stirpes clause can save a lot of confusion.
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So how do I know just how much I can afford to spend on my life insurance?
Well we have some suggestions for that for you too. The trick is to know how much you’re spending and where you’re spending it. You can’t know that unless you have a written budget. It’s really the most important key to effective money management. We have some help for you there too. Making a budget isn’t as difficult as you might think. We’ve actually broken it down to 7 simple steps that anyone can follow. If you’ve been frustrated with your money get your
FREE COPY: 7 SIMPLE STEPS Make a budget and STICK TO IT ! just click the link above or give me a call 619-670-1000 or drop me an
email -------------------------------------------------------------------------------------
What about Life Insurance on my kids?
Getting a small policy on kids is usually a great idea. While kids generally don’t need insurance for financial reasons it does a couple of things for them.
First it protects their insurability. Kids can sometimes develop physical problems that make them uninsurable. Doesn’t happen very often, but it’s probably a good idea to get them a nominal permanent policy.
Second, it locks in a nice low monthly premium for them. Life insurance rates on kids are phenomenal. The monthly premium on just a small $25,000 policy on a 30 year old is nearly DOUBLE what it is on a 2 year old. And that premium is good for life!
You’ll always want to get what’s called the GUARANTEED INSURABILITY OPTION. (Look back to the yellow insert )
Why should I buy Life Insurance when I'm young?
- Life insurance is cheaper when you’re younger. On the permanent portion of your insurance plan, the longer you put your money to work for you, the better the result!
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When you’re young, you’re insurable. When you’re older; maybe you’re not. We’re all just one doctor visit away from NOT being able to buy life insurance. If you’re diagnosed with even a minor ailment the cost of your life insurance can go up dramatically and in some cases, you won’t be able to buy it at all.
Other questions I could answer (but I won't here...)
- Is it ultimately cheaper to pay annually or monthly?
- How can I be sure that my life insurance company is safe?
- What are ‘Banded Premiums” and how can they save me money?
- What about Accidental Death and Dismemberment Riders? Should I have one?
- Should I own my own policy or should my spouse?
- Can I buy insurance on my business partner?
- Is the Non-Tobacco rate really THAT MUCH BETTER?
- What’s the difference between dividends and cash value?
- What’s a “contestable clause” and how could it hurt me if I don’t understand it?
- What are PAID UP ADDITIONS and how can they increase my insurance coverage?
Really.. I could really fill a book.
That’s why you really need a committed agent to do all this thinking with you.
After all… You probably have better things to do.
If you're in or near San Diego County, I'd be happy to help. If you're not, find a good, knowledgeable agent in your area. Take your time... it's an important decision.
When it comes to buying life insurance, you should always deal with a LARGE, WELL-KNOWN, REPUTABLE INSURANCE COMPANY. One easy rule is that if you haven’t heard of them, be suspect. I guarantee you’ve heard of ours – we’ve been at it for over 75 years! Today we have over 7 million life and annuity policies in force. Since 1929 we have been protecting American families one policy at a time. Just go to www.DennisVolz.com . (don't worry, this window will stay right here...)
WOW! Kind of impressive!
I think so.
And it’s ALL included at no additional premium...
We offer NATIONWIDE AND 24 HOUR CUSTOMER SERVICE. That’s right -- Doesn’t matter if it’s a claim or a question. You simply call my office number, 619-670-1000 and you’ll have access to our 24 Hour Customer Response Team and/or to my personal cell phone.
Should you need insurance help while away from home, we have over 1000 claim offices and over 16,000 agent offices across the United States and Canada all committed to giving you friendly, efficient home-town service (even if you’re from California ! )
This is so simple and easy to do.
You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
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This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
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