William Penn Life, 2018 (53. évfolyam, 1-12. szám)
2018-10-01 / 10. szám
Moneywise with Bob Bisceglia, National Sales Director The life insurance solution AS I'M WRITING THIS, we're still in September, a.k.a., Life Insurance Awareness Month. While preparing last month's column on Life Insurance Awareness Month, I came across an interesting article that I'd like to share with you now. The article was a blog entry I found online at Insurance Forums. In it, the author turns the table on his readers and asks them to respond to two questions: • Why did you purchase life insurance? • And, what do you love about life insurance? This was done in an attempt to come up with the top 25 reasons why consumers love life insurance. The author found it pretty easy to cover the basic or traditional reasons: protecting loved ones, paying off a mortgage, providing for burial expenses, etc. But, he was hoping to uncover more specific or unconventional reasons as to why people purchase, and love, life insurance. While we may not hit on all 25, the following are some of the responses that he received. The respondents are identified by their initials and their state of residence. • MSG from Pennsylvania responded that "one of my favorite reasons to 'love' life insurance is that you don't have to die to see the benefits of insurance. A person may be able to use the cash value build up should they have a critical or terminal illness. In addition, knowing that I could access my life insurance values to help run my business or cover medical expenses is a nice feeling." • BA from Colorado responded: "Life insurance loans and payments are not reported to the credit bureaus." (Now there's one that even I hadn't thought of!) "This allows the 'debt' to be hidden and improve your debt-toincome ratios whenever you are applying for a loan. This also helps should you become unemployed. Life insurance loans can help you stay ahead of your other debts and won't negatively impact your ability to get your next jobsince many employers today run credit checks on prospective employees. Being on time with your payments can really make a difference....In short, in the event of unemployment, cash value life insurance buys you time." • DHK from California said that "unlike withdrawals or loans from your qualified retirement plans, such as 401 (k)s, there are no limits to the number and size of loans that you can take out against a life insurance policy....If you have a 401 (k) loan outstanding and should lose or quit your job, that loan becomes immediately due for repayment or it's subject to taxation and potentially an early withdrawal penalty." DHK goes on to state that "if your policy includes the disability waiver of premium clause, your premiums will be paid for you in the event of a disability - and all values will remain intact....This helps your plans to continue forward, even if you can't earn the money to contribute to the plan yourself due to a disability." • RM from Tennessee chimed in with "if you are using life insurance loans to supplement your retirement, the cash flow is not only tax-free, but it also doesn't affect the taxation of your Social Security income, like income from other retirement plans do." • LL from Florida commented that he has been diagnosed and treated for cancer twice in his lifetime. Both times he thought he was going to die, but since he owned life insurance, he felt comfort in knowing that his family would be okay if the unfortunate occurred. Owning life insurance "will allow my family to live in their own world with dignity," he believed. He's now cancer-free for the last 10 years, and although he loves all the other benefits that others have mentioned here as well (tax-deferred cash value growth, dividends, etc.), "having that death benefit still remains the number one benefit to owning life insurance." • GO from Wisconsin simply said that "having a permanent death benefit gives seniors a 'permission slip' to spend down their assets....Owning a permanent policy gives you options you may not have considered, such as using a straight-life annuity or pension option instead of Photo © Can Stock Photo Inc./Fantasista 4 0 October 2018 0 WILLIAM PENN LIFE
