Buy Term & Save The Rest . . .

[myinsurebiz]

So - let's say a 30 y/o couple with 2 kids wants immediate Term Life insurance protection for their Family - $Million$ on the Main Supporter and $250k / $500k on the Other, both with the standard Child Rider and Living Benefits for 25 / 30 years.

How can they "Save The Rest"? Not so much "investing" unless there is a way with ZERO risk of losing the principal . . .

Talking about a middle income household.

Not so much saving for retirement - just saving to handle their Funeral & Final Expenses when the Term runs out . . .

I need to be able to refer these cases to a CFP or someone.

Thoughts?

 

[62Dodd]

$950k term + $50k IUL/GUL for main and same idea for the the other. Boom your done!

 

[myinsurebiz]

$950k term + $50k IUL/GUL for main and same idea for the the other. Boom your done!

Ameritas has a nice IUL some say. I know nada on UL's though.

 

[DHK]

How can they "Save The Rest"? Not so much "investing" unless there is a way with ZERO risk of losing the principal . . .

Talking about a middle income household.

Not so much saving for retirement - just saving to handle their Funeral & Final Expenses when the Term runs out . . .

You're talking about a blended policy: a small WL/IUL with a larger term rider. When the term rider expires (usually no longer than 20 years), the permanent plan will continue on.

 

[62Dodd]

...or keep the term @1m, so you can take advantage of the breakpoints. The BP price savings put towards the permanent policy.

 

[myinsurebiz]

You're talking about a blended policy: a small WL/IUL with a larger term rider. When the term rider expires (usually no longer than 20 years), the permanent plan will continue on.

any advantage / disadvantage to having separate Term and IUL policies?

...or keep the term @1m, so you can take advantage of the breakpoints. The BP price savings put towards the permanent policy.

Can you explain BP and why it's important?

 

[DHK]

Compensation advantage to you to put the entire policy on a WL or IUL chassis than doing it separately.


It's actually 'banding' that at different face amounts, you pay a little less per thousand the more face amount you buy.

 

[62Dodd]

A breakpoint (BP) is a discounted rate per thousand once the face amount reaches a specified amount. Example: A base rate of $1.00 per thousand would go to .95 cents at 250k face amount, .90 cents at 500k, .85 cents at 1m., etc.

 

[myinsurebiz]

Compensation advantage to you to put the entire policy on a WL or IUL chassis than doing it separately.


It's actually 'banding' that at different face amounts, you pay a little less per thousand the more face amount you buy.

Thanks . . .

IUL's seem to have many moving parts. I'm going to have to study and learn about them.

Might have to check into learning about the different IRA's too.

 

[myinsurebiz]

A breakpoint (BP) is a discounted rate per thousand once the face amount reaches a specified amount. Example: A base rate of $1.00 per thousand would go to .95 cents at 250k face amount, .90 cents at 500k, .85 cents at 1m., etc.

Ok - gotcha . . .