Term Life Insurance Articles
How Much Upper Class Families Need Term Life Insurance
2010-07-16
The general consensus is term life insurance is designed for the economically challenged, not the wealthy. This is a misconception; the upper class can realize appreciable benefits from "pure insurance." Although it does not accrue cash or loan value, it is a valuable investment. Term life insurance can preserve, increase, and secure the wealth of the upper class.
The elite have an elevated standard of living than lower class or middle class citizens. With this exalted lifestyle, there are astral expenses: mortgage, staff, luxury automobiles, vacations homes, educational expenses, and entertainment expenses. It is unbelievable to consider the demise of the primary breadwinner, but catastrophic illnesses and accidents, unfortunately, make death a possibility and a reality. Term life insurance can be purchased with face amounts of over a million dollars for a lower cost than whole life or universal life insurance. It will effectively replace the income of the primary financial supporter by providing for the living expenses of the surviving partner, educational expenses of any minor children, and financial resources that will permit the survivors to continue to enjoy the lifestyle to which they have become accustomed. The benefits of term life insurance can therefore be used to preserve the trappings and lifestyle of wealth of the upper class.
Term life insurance, considerably less expensive than permanent life insurance, can translate into savings that can be utilized to augment wealth. For example, a whole life insurance policy with a 750,000-face amount can minimally have an annual premium of 20,000 or more; a term life insurance policy for the same amount may cost 10,000.00 or less. If the insured invests the difference of 10,000 in a mutual fund with a 10% return rate, over five years, the client would realize a profit of 6,071. This amount is very conservative, as diversification into other investment markets such as large-cap stocks and bonds could result in a considerably higher profit margin. Therefore, term life insurance can substantially increase the wealth of the elite.
One way to secure the wealth of an upper class policyholder's family is to set up an irrevocable trust, arrange for the lump sum to be paid into an interest bearing account, and choose a settlement option that would provide an annual income or annuity over the projected lifetime of the beneficiaries.
In conclusion, the upper class actually has exigency and term life insurance can positively affect and guarantee their continued affluence. Usually term life has a conversion provision that will permit it to be converted to whole life insurance after the term or utility expires.
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The general consensus is term life insurance is designed for the economically challenged, not the wealthy. This is a misconception; the upper class can realize appreciable benefits from "pure insurance." Although it does not accrue cash or loan value, it is a valuable investment. Term life insurance can preserve, increase, and secure the wealth of the upper class.
The elite have an elevated standard of living than lower class or middle class citizens. With this exalted lifestyle, there are astral expenses: mortgage, staff, luxury automobiles, vacations homes, educational expenses, and entertainment expenses. It is unbelievable to consider the demise of the primary breadwinner, but catastrophic illnesses and accidents, unfortunately, make death a possibility and a reality. Term life insurance can be purchased with face amounts of over a million dollars for a lower cost than whole life or universal life insurance. It will effectively replace the income of the primary financial supporter by providing for the living expenses of the surviving partner, educational expenses of any minor children, and financial resources that will permit the survivors to continue to enjoy the lifestyle to which they have become accustomed. The benefits of term life insurance can therefore be used to preserve the trappings and lifestyle of wealth of the upper class.
Term life insurance, considerably less expensive than permanent life insurance, can translate into savings that can be utilized to augment wealth. For example, a whole life insurance policy with a 750,000-face amount can minimally have an annual premium of 20,000 or more; a term life insurance policy for the same amount may cost 10,000.00 or less. If the insured invests the difference of 10,000 in a mutual fund with a 10% return rate, over five years, the client would realize a profit of 6,071. This amount is very conservative, as diversification into other investment markets such as large-cap stocks and bonds could result in a considerably higher profit margin. Therefore, term life insurance can substantially increase the wealth of the elite.
One way to secure the wealth of an upper class policyholder's family is to set up an irrevocable trust, arrange for the lump sum to be paid into an interest bearing account, and choose a settlement option that would provide an annual income or annuity over the projected lifetime of the beneficiaries.
In conclusion, the upper class actually has exigency and term life insurance can positively affect and guarantee their continued affluence. Usually term life has a conversion provision that will permit it to be converted to whole life insurance after the term or utility expires.
