A life insurance policy is simply a promise, as a life insurance company promises to pay a death benefit upon the death of the insured in exchange for a premium – an amount of money you contribute to the general fund of the insurance company. The promise is a legally enforceable contract. Our life insurance services from Malibu, CA, can help clients from Los Angeles to Calabasas, CA, find what kind of life insurance is right for them.
Life Insurance Services From Malibu, CA
Term life insurance expires after a certain amount of time. Even if a policy is “guaranteed renewable,” it’s only renewable until you reach a certain age. After you reach that age, then you can’t buy any more term insurance. This age is determined by state law, so it may be different in Central California than in other parts of the country.
A term insurance policy will only pay a death benefit if the insured dies during the term. Die one day after the policy expires, and your beneficiaries are out of luck.
Only a small percentage of term insurance policies ever pay a claim. But their affordability and the fact that a very small amount of monthly premium will buy a truly life-changing death benefit to protect widows and orphans (if the insured is reasonably healthy when they buy the policy) make term life insurance a must-have for any family breadwinner who can qualify. To learn if you meet these qualifications, contact our life insurance services in Malibu, CA, for more details.
Whole Life Insurance
On the other hand, whole life insurance is designed to pay a death benefit – even if the insured lives well beyond life expectancy. Their permanence is what allows the life insurance carrier to make the cash value available to the policy owner: The carrier knows that any advances or loans are secured by the eventual death benefit. There are several ways that permanent life insurance can be structured.
Each of these types of whole life insurance policies will build cash value over time, and you can access the cash value for any purpose – tax-advantaged – as long as you don’t borrow or withdraw so much that the cash value reaches zero and the policy lapses. Lapsed policies carry some nasty tax consequences that we’ll deal with later in the chapter. But as long as the policy doesn’t lapse and remains in force to pay a death benefit or be converted into an annuity, you can still enjoy the powerful tax advantages of the life insurance contract.
Equity-Indexed Universal Life Insurance From Malibu, CA
Our life insurance services from Malibu, CA, can also help you with equity-indexed life insurance. This variety of insurance is unique in that it is connected to the stock market and does not have a fixed interest rate, among other distinct features. However, these distinctions make equity-indexed universal life insurance considerably more difficult to understand and manage than other forms of insurance. With the aid of Malibu Wealth Planning’s experienced life insurance consultants, you’ll be able to navigate this type of insurance far more easily.
Using Life Insurance to Pay for Long-Term Care
Hybrid life/long-term care policies pay for long-term care and custodial care benefits that aren’t covered under Medicare or by major medical insurance policies. If you don’t exhaust the long-term care benefits or other benefits under the policy during your lifetime, then that much more is passed on to your beneficiaries as a death benefit.
Here’s how a hybrid life/long-term care policy works: You pay premiums – either as a single lump sum or spread out over a period of up to 10 years.
On average, people fund these policies with about $75,000 in premium, according to the American Association for Long-Term Care Insurance. In return, they get from $100,000 to $600,000 in eventual death benefit, and from $80,000 to $500,000 in long-term care benefits. The younger and healthier you are, the greater the benefits you may qualify for.
Meanwhile, your premium dollars sit inside the policy, accruing at a guaranteed rate, tax-deferred. If you want or need to access your policy’s cash value, you can do so in days by calling the insurance company and having them send you a check or wire you the money.
They will subtract a corresponding amount from your death and long-term care benefits when you withdraw funds from your cash value.
Reach Out Today for Life Insurance Services From Malibu, CA
If you ever seek the assistance of a life insurance advisor or consultant, then you can find a seasoned expert at Malibu Wealth Planning! Additionally, we also offer other financial services, including:
- Financial Investment Advisors
- Annuity Solutions
- Tax Planning Services
- Income Planning Services
- Retirement Planning Services
Although our office is close to Calabasas and Los Angeles, CA, we provide life insurance services from Malibu, CA, to across the country! So whether you reside in New York or Central California and need help from an experienced life insurance advisor, you can count on us!
A life insurance policy is simply a promise. A life insurance company promises to pay a death benefit upon the death of the insured, in exchange for premium – an amount of money you contribute to the general fund of the insurance company. The promise is a legally enforceable contract.
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