Your Life Insurance: A Swiss Army Knife of a Bottle Opener?

Your Life Insurance: A Swiss Army Knife of a Bottle Opener?

For many people, their introduction to life insurance begins when they are just starting a family. Often money is tight and they look for the most inexpensive coverage they can find. Everyone likes a “deal” and paying the least amount of premium for the maximum amount of benefit seems to make sense.

Young parents often buy the “bottle opener” i.e. 20-year term insurance. It has one use only; if they were to die prematurely, their families will not be left in dire straits.

None of us can foretell what the future holds in store. We may become fabulously successful or we may encounter misfortunes other than death. In either case, the original term policy might not provide adequate coverage.

Increased earnings lead to higher cost lifestyles resulting in a need for more life insurance. A future accident or disability could result in income loss, making it difficult to meet expenses including insurance premiums. A business that is struggling might require a cash infusion that may not be readily available from lenders. A child may develop special needs and may have to be provided for over a lifetime.

  • Did you know that some policies may allow you to purchase more coverage in the future without any health questions?
  • Did you know that adding a waiver of premium rider to a life insurance policy could ensure the policy would continue to be paid if the insured became disabled and unable to pay the premiums?
  • Did you know that many term policies can be converted to permanent coverage with no health questions or physical exams?
  • Did you know that you can borrow money from a cash value life policy by simply completing a form?
  • Did you know that some policies allow you to advance the death benefit for your own chronic care needs?
  • Did you know that a life insurance policy, even some term policies, that are no longer needed can be an asset that may be sold for cash?

Over a lifetime circumstances change. If your insurance is the “bottle opener” kind might not a “Swiss Army Knife” policy ultimately be a better deal?

TIP: If you are considering Term Life Insurance, only consider a policy that can be converted to a permanent one. As they say….You never know. 

If you have life insurance and haven’t reviewed it in a while or have had a recent major life event contact me for a complimentary review. [email protected]

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