Key Person Life Insurance

2006-02-14T18:04:00.000-10:00

Most businesses have certain employees or partners who are absolutely critical to the success of the company. Without their physical presence and active participation in the operation of the firm net profits would be reduced... sometimes drastically.

A smart way to protect the potential loss of this key person, should unexpected death occur, is for the company to own life insurance on that individual. The best type of policy would typically be one that produces early high cash value. It is common to have at least 98 percent of the premium immediately credited to the company's liquid cash asset account resulting in a net cost which is less than a term policy.

The Most Important Person In The Room

2006-02-10T22:24:00.000-10:00

While he wasn't my very best friend, his friendship was, nevertheless, important to me. For over 30 years, we had shared food and drink, baseball games, our kids soccer events and much laughter.

At his funeral, I stood at the back of the parlor hall and watched dozens of his friends pay their last respects to his family. There were many hugs, gentle kisses, warm handshakes and, of course, a flood of tears. As all those people were expressing their genuine condolences to the bereaved family, it occurred to me that I was probably the most important person in the room right then. Not in an arrogant or presumptuous sense... but in a practical one.

You see, in addition to our friendship I was also his life insurance agent. It wasn't easy because, like so many naive individuals, he resisted each time I approached him about the subject. Like many well-meaning, caring, loving husbands and fathers... he didn't want to talk about it. Not for a long time anyway. But, I didn't give up because I've witnessed dozens of unexpected deaths that without the benefit of life insurance would have devastated families and businesses.

Because I cared so much for him and his family, I pursued until finally - at long last - the $1,000,000 policy was put into effect. And so... there I was in the back of the room. And, when it was my turn to gently kiss his grieving spouse and warmly hug his kids, I didn't just express my sorrow... I reminded them that in a matter of days a great deal of money was going to be available for them to secure their lifestyle for the rest of their lives.

The power of life insurance is truly awesome! What a shame most people don't understand or appreciate its value. And what a bigger shame it is for these same naive people to make fun of or even ridicule life insurance agents. The reality of death cannot be denied. Yet, under normal circumstances the prediction of any one particular death is impossible. This is why life insurance is based on the principle of large numbers. There is a science of prediction based on the similarity of statistically large groups of people. Without this ability to predict the larger scale version of death, it would be impossible to buy a life insurance policy for a reasonable price. And yet, our individual deaths will undeniably and irrevocably occur.

For most of us, the death of a loved one or a business partner is cause for financial concern. Either the loss of family income is potentially devastating or the intrinsic commercial value is almost impossible to replace. In most instances, the tax-free death proceeds from a life insurance policy can greatly reduce the financial pain and, perhaps, even remove it completely. Life insurance is the most misunderstood financial asset anyone could own. Yet, it should be the cornerstone of every financial plan. Without the tax-free proceeds of a life insurance policy most financial plans will crumble in only a matter of time.

This article will not venture into the turf of product types. We'll save the classic "buy term and invest the difference" argument for a later presentation. In the meantime, I'll leave you with this thought. I have delivered in excess of 15 million dollars of tax-free life insurance proceeds over the past 25 years. Children have completed their education because of this... mortgages have been paid off because of this... businesses with hundreds of employees have survived because of this. At no time ... ever ... did anyone who accepted their tax-free check ask me what type of policy it came from. They simply didn't care... and why should they? The death proceeds from a life insurance policy is the greatest gift anyone could leave to a loved one.

So, the next time a life insurance agent wants to discuss life insurance with you... for heavens sake listen up! That agent could become the most important person in the room when your loved ones are grieving your demise. Make sure that agent can deliver what your family is going to need the most because you can no longer provide it for them.

Life Insurance... Learn How Much You Need and the Best Policy Type to Buy.

2006-02-10T14:21:00.000-10:00

A properly purchased life insurance policy is the only way for the average breadwinner to absolutely flat-out guarantee financial security for their loved ones.

Most people are not financially independent. Fact is most people inherit debt when their loved one dies.

Not to mention the loss of that loved one's income ... so desperately needed to preserve the family lifestyle. "

The World's Least Understood Product

2006-02-07T18:42:00.000-10:00

Life insurance is the most misunderstood money product in the world. Truth is... even many life insurance agents don't really understand exactly how it works.

This blog will cover everything you need to know about how to decide what type of life insurance is best for your situation, as well as the most economical ways to buy it.

But here's the basic premise: Unless you honestly love someone, don't even consider the purchase of life insurance. Remember, it's not for you... it's for them!

More later.