Benjamin Franklin famously wrote in a 1789 letter, “In this world, nothing can be said to be certain, except death and taxes.” If we know this, should we guarantee a life insurance benefit at our youngest and healthiest age? This may be the million-dollar question.
Guaranteed universal life policy at top health rates:
30 years old purchases a 20 year term at top health rates:
At 50 years old he purchases another 20 year term at Preferred health rates:
At 70 years old he purchases his last 20 year term at Standard health rates:
Term life insurance policies serve a very important purpose. It provides coverage for a limited period of time and is the most affordable type of insurance when initially purchased. Though, if one is to live to life expectancy it can be far more expensive.
It is common to think about term vs. perm as an either/or decision, it may be more appropriate to think of both. Especially if one believes there will always be a need for life insurance.
Contact your life insurance specialist if you think a combination is right for your client.