Oct 03 2016

Understand Your Life Insurance Options

Understand Your Life Insurance Options

If you own life insurance and have held policy(ies) for several years, I wanted to demonstrate a few simple ways to reduce your life insurance premiums substantially compared to what you pay now. Below I explain how and include a simple case study.
The Process
I have recently implemented Life Design Analysis insurance software into my business. Whether you are presently looking to purchase or already own life insurance, this software shows whether you are getting the best value for your money! 
Case Study
A 40 year old, non-smoker, male wants to ensure that should he pass away prematurely in the next 20 years, that his $300,000 mortgage will be fully paid off. He gets a quote for two types of policies from the same insurance company, a 10 year term and a 20 year term policy.  The 10 year policy is $248 a year and the 20 year is almost double at $428 annually. What is the best value for money?
Using Life Design Analysis software, it was shown that the Term 20 policy saves $11,280, over 50%, over the 20 year time-frame. See snapshot below. 
Why is that? Simply put, after 10 years, the term 10 policy has a renewal and the premium rises (see red arrow below).
At the 11th year, the total cost for the 10 year term becomes more expensive over the time the client wanted coverage (see red circle below).
While this is a very simple case study, Life Design Analysis software can analyze very complex life insurance policies making it very clear whether you are getting the best value for your money!
Please contact me, if you would like further information.

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