Life insurance is a critical part of everyone's financial life. Sadly, it receives little in the way of thought and planning in most situations. A young family, thinking about affordability, will usually buy the least expensive term insurance that they can find.  This is not a bad strategy, but the mistake is assuming that, when the term insurance guaranteed premium expires, there will be no further need for life insurance.  So we see someone who has reached age 50-60, facing a choice between a term policy that is no longer affordable, and a permanent policy with a premium that is too steep.
 
Once the children are grown and on their own, we don't need life insurance --- wrong!!. There are a number of reasons to still have coverage.  A spouse who is unable to generate enough income to support themselves. A special needs child who will need care as long as they are alive. Retain assets for the use of children and grandchildren.  Pay for estate settlement costs and possibly estate taxes. Preserve charitable gifts efficiently and economically without displacing other assets. Provide for business needs and generate liquidity for a closely held business or professional practice.
 
In recent years, the insurance industry has developed a product ideally suited for all of the purposes cited above.  It is guaranteed universal life.  It is a policy that builds very little cash, but maintains its death benefit for life.  The premiums are higher than term insurance, but much lower than traditional permanent policies. Guaranteed universal life is also available in a survivor life form, perfect for estate planning, where a guaranteed death benefit is important, but there is no real need to accumulate large cash values.
 
We have become an economy that reacts positively to guarantees, we have all been burned too often by expectations. The strength of a guarantee is based on the financial standing and ratings of the insurance carrier,so all guaranteed universal life policies are not alike. Premium alone should not determine who you do business with.  Do some analysis, as you would with any long term financial commitment. We are happy to provide information on the best guaranteed universal life policies for each age and gender.  Contact us at anadolna@associatesgroupinc.com.