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Life Insurance for a Single Male with No Children/wife?
- Thread starter catowned
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- 4,132
Your license would be fine for a Business overhead policy (health). A BO policy is one that you can usually get a 30 elimination period on, and they can pay 12-24 months in most cases.
These policies re-emburse you for basically your schedule C expenses like rent, phones, etc.
For a sole prop, working alone a BO policy makes alot of sense. It covers the bills and contractual obligations.
These policies re-emburse you for basically your schedule C expenses like rent, phones, etc.
For a sole prop, working alone a BO policy makes alot of sense. It covers the bills and contractual obligations.
- 1,953
Something to consider is creditor protection. Of course he would want to consult with an Attorney to consider if it's an option.
Creditor Protection for Life Insurance and Annuities
Creditor Protection for Life Insurance and Annuities
Yes cash vallue life insurance comes with creditor protection. LGilmore's suggestions is a good one and should have your attention. Also, the disability insurance recommendations are sound and should be entertained. He's worked to build this business to what it is, he should ensure the income it generates will remain working for him even if he cannot.
I'd talk additionally about retirement plans. If the business is truly doing well, there are many things you can work with him on.
I'd talk additionally about retirement plans. If the business is truly doing well, there are many things you can work with him on.
- 10,340
Be careful with that. I always used to think the same thing too, but this varies greatly state by state...
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These suggestions are so wonderful!- 10,340
DI premiums (for an appropriate policy) are usually more around 3% of income as a general rule (of course occupation, age, and individual need will move it a bit in either direction.... and of course budget..)
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- 4,132
"Now I have to figure out what DI/CI/BO policy is the best one for him"
Look for the ones with the shortest "definition of disability." Because in reality, every sentence past the first reduces the strength of the policy.
Read the policies closely as there are many degrees of disability and you want to include as many as possible.
Look for the ones with the shortest "definition of disability." Because in reality, every sentence past the first reduces the strength of the policy.
Read the policies closely as there are many degrees of disability and you want to include as many as possible.
- 10,340
I second that; also, dont forget to make sure partial disibility is included or added as a rider, along with a COLA rider, and "Own Occupation" rider. All of these are essential to any DI policy
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Going by the link provided in the other post
(I have seen the state by state chart once, but never read the article before)
Only 15 states give creditor protection to 100% of the CV in Life Insurance policies, and most of those states have restrictions on who the beneficiary can be..
(in some it has to be an immediate family member, in others it cant be the owner, etc., etc.)
BNTRS is lucky being in Vermont; the cash value is "wholly exempt" for owners of policies, unless its credit life insurance.... but, the beneficiaries of the policies he sells are not so much; beneficiaries are only exempt if they are a dependent of the insured, or if they are the owner of the policy... fun stuff...
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