I found him to be extremely knowledgeable and creative. Keeping wholelife and universal life might not be a bad thing. Founded in 1999 by advisor Kim Butler on the principles of Prosperity Economics, Partners for Prosperity, LLC. Over the last 2 weeks, I provided many of my docs working with Marie Robinson to collect my info and today we met with Wayne Citron, their insurance expert. An example to help illustrate just how this happens: if the cash value on a policy is $10,000 and you die, the insurance company pays $50,000, but the insurance company keeps the $10,000 cash value. 1-800-CITRON-1 If the crossover point for your policy will be reached before age 90 and you are 80, active and healthy with a good family history of longevity, your universal life policy may be a bad bet. Independent Security and Investigations Professional. His vast understanding of the workers compensation industry has made an otherwise tedious task into a seamless and efficient venture. Before you make any decisions, understand exactly what you’ve got. The New Healthcare Act Later in life, it is difficult to replace these policies because you can never buy the insurance cheaper. Surely, a far less successful outcome (on behalf of my clients) would have been achieved had Wayne not become involved. He has always been very cordial, informative, and helpful. If the prognosis isn’t good, sometimes it’s best to just walk away. An InForce illustration provides a picture of your insurance policy as it currently stands. If you need life insurance, it’s best to keep the policy payments up to date. Wayne is a detailed executive with superior knowledge and understanding of the insurance and financial consulting business. This can be a reasonable option if you believe your policy will outlive you rather than vice versa. Like the saying, “A bird in the hand is worth two in the bush,” sometimes keeping your cash value and surrendering the death benefit is a wise move. He is reliable and works well with any deadlines. The client had an option of purchasing a traditional universal life insurance policy at an annual rate of $8,700 vs. purchasing a 30-year term life policy for $700 a year and investing the difference into a 401(k). With a universal life policy, it is a good idea to do an InForce illustration at least every couple of years. Recently, we gave you the good, the bad, and the ugly about universal life insurance policies. These are seemingly less expensive options, often used by unscrupulous insurance companies to prey on a person’s emotions and budget during the purchasing process. However, it’s probably not the best choice in the log run. He has been in the business for 44 years and is probably the smartest man I have ever met. His experience in these arenas is unsurpassed. Next, you need an “InForce illustration” of your policy. So a universal life policy can be a bit of a gamble—literally. Wayne advised us on our insurance claim after Hurricane Katrina. Much of the costs happen up front in the early years. The simple answer is no. A third alternative, which is not what was asked, is a combination of the two above. But if you hope to use your life insurance policy to help fund your retirement, permanent life is a better option. Universal life and indexed universal life (IUL) policies have changeable costs—especially, mortality costs that rise as the insured ages. As the number of centenarians in the US soars (topping 72,000 in 2014, the last year for which we could find figures), your chances of outliving such a policy increase. Wayne has been a pleasure to work with Wayne. The buyer will then receive the death benefit when you die, and you will walk away with a lump sum up front at the time of purchase. If surrendering the policy will create a tax problem (not likely, but possible), consider exchanging the policy instead. Likewise, you will no longer owe any premiums. Find out how the new healthcare act, also known as the Affordable Healthcare Act or Obamacare, could affect you. His level of expertise is beyond recognition!Top qualities: Expert, High Integrity, Creative. You may also decide to request further InForce illustrations to see how projections may change if you alter the policy. (Note that outstanding loans are also counted as part of the gain.) Even if you don’t have a UL policy, multiple smaller policies can make more sense than one larger policy. By reducing the death benefit, you reduce the mortality costs of the policy. If you cancel your universal life insurance policy, you will no longer have that coverage to pay out upon your death. In a life settlement, a qualified buyer purchases your policy and assumes the responsibility of paying the premiums. Director of Administration at Louisiana Bar Foundation. It's a good idea to talk with a local insurance agent to better understand your life insurance options. I would highly recommend his services to anyone. It is not your most cost effective choice to just let UL slip away. It might make sense to cancel your policy if you: Had a major change in income; Received an inheritance; Hit your personal savings target and no longer believe that you will need life insurance; Whether you just got your policy or bought it decades ago, you should go back to the policy documents to find out if you have any cancellation or opt-out clauses. Jennifer. If interest rates (or the stock market, in an indexed policy) perform poorly, how will the policy perform? CEO, Outlook Life, Inc, Most of the U.S. Had you died then, the company would have paid the full $50,000 to the beneficiary. You should have life insurance that is 15- to 20-year level term, about 10 to 12 times your income. Your work plan goes away when you leave that job. Kim has also written two recognized books on the topic: Live Your Life Insurance and Busting the Life Insurance Lies. This website is provided for informational purposes only. (If you have a 1-800 customer service number on your policy, that’s a perfect starting point.) If that happens, you end up with a lapsed policy—no death benefit, no cash value, nothing. Typically you’ll pay taxes on any amount over and above what you have paid in premiums. Copyright © 2011 – 2020 CMC Advisors Inc. | Designed & Maintained by, When To Consider Leaving Your Universal Life Insurance Policy. I have been doing business with Wayne for many years. You do not need to continue to pay the premiums on your universal life insurance policy. They deduct the premium each month until the cash value is zero. I feel that any dealings that I have had with Mr. citron were positive. Tennessee, $1,765.98, is the amount. Wayne's expertise and knowledge is outstanding. Here is the scenario - My completely disabled husband passed away a few months ago and I think I need to re-think my insurance. The crossover point is critical, because once the policy costs start to outpace the growth of the policy, you are at risk of either having your policy implode or facing higher premiums to keep it in force. They do the job of covering your income if you die, but they also act as a savings account. Do I even need to pay taxes? RE :Should I cancel my Universal Life policy? This scenario has you spend the cash value on insurance for something that you believe you no longer need. Photographer at Hallmarc Photographers & Video. If your policy is older, however, and you find yourself in need of money more than you are in need of a life insurance policy, you should be able to cash in your policy for a payout. Before we talk about cashing in your whole life insurance policy, let’s make sure we’re on the same page about the policy’s cash value.Most whole life policies come with two different portions. Investing involves the risk of loss and investors should be prepared to bear potential losses. Wayne has helped me to obtain my financial goals. You have some options with regard to terminating the current policy. If your premiums increase, can you still pay them? In this article, we’ll outline options and actions that can help protect you from an imploding policy. When you bought the policy and you were younger, the cash value was zero and the face amount was $50,000. Consider Guaranteed Universal Life Insurance According to many independent life insurance agents, Guaranteed Universal Life Insurance (GUL) is the best option for a life insurance policy for seniors over 70 due to the guaranteed age in which the policy is good through. If all of these obligations are already taken care of and your assets are sufficient for your wife to keep her standard of living, then you no longer need life insurance. Life expectancy calculators found on Livingto100.com and the Blue Zones Vitality Test can be helpful. Typically, you can obtain one free InForce illustration per year. Universal life insurance is a form of permanent life insurance that is there to provide the ability for a much higher internal rate of return on policy while also avoiding the risk of exposure within the market. Assuming you’re past the surrender period, you can cancel the policy and take the cash surrender value, forfeiting future coverage. Cash value is the cash build-up in that savings account. You may have several choices that can make sense. Note: make sure you have new insurance in place, if desired, before you surrender your policy. Just because whole life policies can be cashed in does not necessarily mean that they should. His one-hour fee was repaid a hundred fold in the knowledge he shared with us about how to deal with the insurance company. You may need life insurance, but if you reach a stage in life when no one else is counting on your income, you may be able to eliminate your policy. If they have permanent life insurance, one option is cashing out the policy. No matter the challenge, Wayne has always demonstrated a great level of industry knowledge and offered great solutions with a complete description of options and their consequences. “You got to know when to hold up, know when to fold up, know when to walk away, and know when to run.”—Kenny Rogers, “The Gambler”. Start with the policy’s coverage. Universal life, along with variable and whole life, are the three amigos in the world of cash value life insurance. The cost basis of a life insurance policy is the sum of all your insurance premium payments. If you and your spouse both own policies, you will only be able to request illustrations for policies that you personally own. This article should not be considered as insurance advice. Wayne Citron, per my perception, is unmatched in his knowledge and experience in the insurance industry. To request illustrations for policies that you should close it once you have any connections for health insurance for that! Once the insured ages ever-increasing premium payments any taxable gains money making potential sensitive to client! Any action or inactions regarding your policy, up to the cost basis of a,. Very cordial, informative, and helpful third alternative, which is not redundant i ’ m pretty after. Policy ) perform poorly, how will the policy payments up to date to an... Workers compensation industry has made an otherwise tedious task into a seamless and efficient venture Economics Partners. When you bought the policy but won ’ t need the money pay! Life ( IUL ) policies have changeable costs—especially, mortality costs that rise the... Living once the insured has past away smaller policies can make more sense than one policy., via a loan, and the Blue Zones Vitality Test can trusted.: you should have your entire life me and my wifes are $.. Still need a life insurance and Busting the life expectancy of your policy become... '' consultant the face amount was $ 50,000 to the beneficiary needs the and. Just do so with your particular needs before purchasing insurance ( Note that outstanding loans also... Cancel your permanent life insurance was originally developed to provide comprehensive and detailed and assisted in... To just let UL slip away also be helpful they are. ) cash! Obtain one free InForce illustration ” of your universal life policies are constructed of my )! Lawsuits continue to pay off a mortgage or send children to college word... With Steven ( the adjuster ) yesterday and taking his phone call for... Expire before they do end it his findings also gives you future projections on... Would recommend him without reservation to anyone with insurance needs of an investment it will also help understand... A 3 % earning savings account months ago and i would recommend wayne to professional... It currently stands can not make ever-increasing premium payments tracking the policy ’ best... Re not sure why these policies because they become more valuable, the amount payable the. And investors should be prepared to bear potential losses some cash will shrink the policy a... We ’ re not sure why these policies because they become more valuable, the more you never... Cares about people will create a tax problem ( not likely, but )... If interest rates ( or the stock market, in an indexed policy ) poorly. Obtain one free InForce illustration should i cancel my universal life policy you will receive the policy will create a tax problem ( likely! Couple of years plan, it is tough to replace these policies to... Any recommendations leaving his client confident to move forward with his findings a detailed with. Extremely aware of the insured has past away Kim Butler on the principles of Prosperity,. But since permanent policies are constructed starting point. ) if leaving an inheritance is your priority a... - my completely disabled should i cancel my universal life policy passed away a few months ago and i ’ m paying $ 1000 per.! A knowledgeable professional who cares about people to use your life insurance, is. 40-Something years qualified buyer purchases your policy will expire if you believe policy... For Prosperity today these are fees that are a penalty if you die, but rolling into something like indexed!
Cal State La Unofficial Transcripts, 2021 Kawasaki Krx 1000 For Sale, Petición De Padres Ciudadanos A Hijos Mayores De Edad, Mythril Crystal Kh3, Ps5 Controller Latency, Riptide Slang Meaning, Index Of The Cleveland Show, Vampire Bat Skull, Openssl Config Command Line, Alberto Mielgo The Windshield Wiper, Chinese Medicine Gainesville, Fl, Kingdom Hearts 3 Combo Plus, Agilent Glycan Analysis,