Life Insurance

Letters to Ann Landers

“Dear Ann Landers … the ironic part of this story is that less than one month before he died I asked my husband to buy some life insurance.  He refused, saying the smart thing to do is to keep his money in a savings account where it will produce interest.

When he died, the bank gave me $2,200 he had in his savings account. If he had bought the life insurance policy, I would have received $50,000.

If you print this letter, maybe somebody will learn from it.”
Another Letter to Ann Landers - 
“Our agent suggested Mel increase his insurance. "We're insurance poor," I felt.  The truth was I thought my husband would live forever.  Widowhood was something that happened to other women.  Today, I'm that other woman.

Last week I came across an insurance proposal for $40,000 of life insurance.  It was dated five months before Mel died.  We could have afforded it.

Our agent was trying to help, but Mel was in perfect health and I figured I could use the money for a new TV.

Today I'm working in a restaurant trying to keep my family together.  Believe me, it's tough.

Please print this letter for all those wives out there who don't appreciate life insurance as much as widows.

Sign me: Kicking myself in Winston Salem.”
And yet another ...
“I am a 48-year-old widow with four children.  My husband died suddenly of a heart attack last year.  Needless to say, this has been a difficult time, but thanks to my husband's loving foresight, our family is doing well.  Throughout all the years of our marriage, in spite of tight budgets and financial difficulties, he maintained substantial life insurance policies on both his life and mine.

Even with my full-time job, I would not have been able to manage had it not been for his insurance money.  At least our children's grief over the death of their father was not compounded by the loss of their home and friends.

I am shocked by the number of women who have told me in confidence that they are concerned because their husbands have little or no insurance.

They have two cars, a boat and costly vacations.  They give their children music lessons, dancing lessons and orthodontic braces, but they ignore the possibility of what their children would do if the principal breadwinner were to die or become disabled.

Many people have small insurance coverage through their work and believe it is enough.  They need to wake up, Ann.  It cost me $15,000 just to bury my husband.  I'd hate to think of where I would be now if that dear man hadn't loved us enough to make sure we were provided for after his death.

--Carol in Martinez, Calif.”
All three letters are reproduced with permission of Ann Landers, Field Newspaper Syndication
Term Life insurance is designed to meet temporary needs.
Term life insurance provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during that time. [there are policies that can provide funds while you are still alive if terminal or in need of chronic care or sometimes critical care] 

Term life often makes sense when you have a need for coverage until a specific point in time.  For instance, you may decide that you only need coverage until your children graduate or a particular debt is paid off - such as your mortgage.
Term life makes sense for both children & adults who do not want to burden their families with loss of savings or loss of income.
For these reasons, term life insurance is responsible, affordable coverage for 1 to 30 years of your life.
Permanent insurance is designed to meet life-long needs.
Permanent Life insurance can provide financial protection from the cradle to the grave. 
Because policies are designed to never expire, permanent life insurance is priced to keep over a longer period of time.

Because permanent life policies may accumulate cash value, owners may use their policies as collateral, as well as take loans or withdrawals when funds are needed - rather than qualify with a bank.  

Policies may be used to fund retirements or facilitate
Buy-Sell business agreements.  They are also used for Key Person Insurance, as well as Business Continuation.

The potential tax advantages of permanent life insurance make these types of policies desirable for those who strategically plan ahead.

  Run Term Quotes
  High Net Worth

To say that one type of life insurance is "better" than the other would be untrue, because the coverage that's right for you depends upon your unique circumstances and financial goals.  For many individuals and families, it is best to have both permanent and term.

The best way to figure out the amount and type of life insurance that makes sense for your particular situation is to consult with a qualified life insurance professional with access to both term & perm - with multiple companies from which to choose.
Ed Slott, CPA Videos
Life Insurance for Life & Beyond

A quick 5 minute video
Plus the 35 minute video
from which it was condensed
​Both found on YouTube

Note:  We do not work with Ed Slott & Company.  We do approve of, and apply, the tax strategies and concepts mentioned here.
•  Not FDIC insured    •   May lose Value   •   No Bank or Credit Union Guarantee
•  Not a Deposit   •   Not insured by any federal government agency or NCUA/NCUSIF

Another Option:   Sell Your Life Insurance for Cash Money to Spend However You Need

Don't let your life insurance policy lapse!   Term Life or Permanent.   If you have a chronic condition that has shortened your life span, you may qualify.   It can take up to 60 days to provide you top dollar plus take over the premium payments, so don't delay in contacting us if you want to sell your policy.   Our team will ask questions, run the numbers, then present you with options such as maintaining a small portion of the death benefit for funeral expenses and/or leaving an inheritance.    Would you like to improve your financial situation?