Agape Insurance Brokers
Integrity, Experience & Professional

Insurance is Leverage
Insurance is the Biggest Financial Leverage

As the saying goes...... you always have too much insurance when nothing happens but too little insurance if something happens. It is unfortunate.... but the true value of insurance only comes through when there is need for a claim. You will then find it a great financial leverage tool.  This holds through for all types of insurance.

Malcolm Forbes, the billionaire, bought over $60 million of life insurance when he was in his 70's. There were only 3 reasons:
1)  Death insurance benefit was income tax free
2)  Even if he had to pay 70% for every $1 of insurance, the return on his money would still be 30%.... net of income tax.
3)  No other investment guarantees cashflow at the onset of death

The above case study is only an extreme example of how even the richest folks have a use for life insurance because of the leverage it provides when it is most needed. He certainly did not buy it because he like the company or the dividends it may be paying. He bought it because it made the most business, rationale sense.

In cases of people who need estate planning, it is by far the most cost effective way of paying for it too.

On the other hand, most people pay pennies or dime on the dollar for each dollar that ends up in the hands of your beneficiary. If you can find a more cost effective way of leaving a legacy for your beneficiaries, let me know. 

So if its such a good deal, why isn't everyone buying lots of insurance? Well .... here's the truth, death benefits are for LOVED ones only. As such, you have to love them enough to be willing to sacrifice your own present day needs. Most people think they will live almost forever. Whatever statistics there are on sudden deaths or chronic/terminal illness, they think it will only happen to other families. Nobody wants to think of bad things that can happen suddenly. Let the truth be known that people who call in to buy life insurance are often people who are not very healthy or they are close to death. But by then, its too late to get any insurance. Surprise! You can only get life insurance with low premium if you are healthy! Every year I also get half a dozen calls from people who are in their 80's trying to buy life insurance.... often telling me that they  either have never gone to a doctor or in great health ...only to find out thru the medical exam by insurance co and doctor reports that they have the likes of diabetes, high blood pressure, hear murmur etc. .......which makes  it more expensive than they can afford or they have become unisurable.  As for the 80 yr old who has never gone to a doctor, I personally know of no one at that age that has never gone tot a doctor. But if there is such a case, no life insurance company will want to risk selling insurance to him/her. 

Lastly, the market has changed tremendously in the last 10 yrs. While life insurance has always been amount death benefit for beneficiaries, there has been a handful of companies that has shattered this pandora box. Companies are now offering LIVING BENEFITS for insured who are struck with Chronic illness such as invasive cancer, heart attack, major organ transplant....meaning insurance company can advance portion of death benefit to the insured even if he/she continues to live past this Chronic Illness. One company will even advance up to 90%  of death benefit with a cap at $1.5 million. Even better news, while the cost of Long Term Care has been going up almost every year, with NO insurer offering guaranteed lifetime premium .....these insurers offering life insurance with living benefits now covers Long Term Care needs as a chronic illness.  So life insurance can now  serve both as a safe guard for the inured and death benefit for beneficiaries.  

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