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Insurance Toolkit (Simplified Consumer Guide)

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Insurance Toolkit (Simplified Consumer Guide) 2 0 1 8 L E V E R E D C O M P A N Y LIFE INSURANCE TOOLKIT (SIMPLIFIED CONSUMER GUIDE) H I G H L I G H T S : Top 5 hidden secrets about Life Insurance that could cost you thousands and most insurance agents or advisors wont tell you. LEVERED COMPANY I N S U R A N C E E D I T O R I A L [email protected] 818.810.7223 Dear Reader, Please read this very carefully and thoroughly. You and I have similar purposes in this world. It is your job to provide food, clothing, shelter, schooling, medicine, and other things for your loved ones. You do this while I lie in your safe deposit box. I have faith and trust in you. Out of your earnings will come the cost of my upkeep. At times, I may apear insignificant to you - but someday (and who knows when) you and I will change places. When you are laid to rest, I will come alive and do your job. I may provide food, clothing, shelter, schooling, medicine and other things your family will continue to need - just as you're doing now. When your work and labor are done, mine will begin. Through me your hands can carry on. Whenever you feel the price you are paying for my upkeep is burdensome, remember that I can do more for you and your family than you will ever do for me. I am your life insurance policy. If you do your part, I will do mine. Sincerely Yours, Your Life Insurance Policy www.leveredcompany.com/life-insurance LIFE INSURANCE TOOLKIT Life Insurance Simplified "ONLY THE UN-INFORMED PAY TOO MUCH" PROTECTING YOUR FAMILY AND INCOME BECOMES EASIER WHEN YOU UNDERSTAND YOUR OPTIONS. INSURANCE BASICS Understand the basics of how life insurance works, who needs it, and when to purchase it. LIFE INSURANCE TYPES, RISKS AND BENEFITS A simplified snapshot of the different types of life insurance, their advantages and disadvantages. FIVE MONEY SAVING LIFE INSURANCE UTILIZATION SECRETS Life and business problems debunked with Life Insurance. Insurance tools and utilizations that can save you thousands or millions of dollars. INSURANCE COMPANY COMPARISON REPORT Find out how your favorite Life Insurance company is ranked W W W . L E V E R E D C O M P A N Y . C O M / L I F E - I N S U R A N C E Does any of these describe you? LEVERED LIFE INSURANCE NEEDS CLASS 1. I have someone financially depending on me. 2. I am a newly wed and I am now resposible for both my spouse and my financial burdens. 3. I have a family and a sudden loss of income in the household would be devastating. 4. I need to have a college plan for my kids 5. I have aging parents that are dependent on me. 6. I would expericence a major financial burden if I suddenly lost my spouse 7. I want to make sure I have a comfortable retirement. 8. I own a business and I would like to eventually sell my business. 9. My business depends on one or more key employees. 10. I want to provide financially for my family and protect my business in the event of my death. If one or more of these scenarios describes you, then you have Life Insurance need. But having a product that is easy to understand - that's the primary starting ground because there is no one-size-fits-all in Life Insurance. W W W . L E V E R E D C O M P A N Y . C O M / L I F E - I N S U R A N C E LIFE INSURANCE BASICS The Basics Core Benefits Life insurance is a contract between an Life insurance may be one of the most insurance company and the policy important purchase you'll ever make. It holder, where the policy holder pays a may be used to; premium in exchange for a sum of money that pays out to the insured's Pay for funeral cost beneficiary at the event of the insured's Help pay bills and meet ongoing death. living expenses Pay-off outstanding debt including Life insurance can also be a powerful credit cards and mortgage tool for investors when applied in the Continuing a family business context of a strategic decision. Finance future needs like childrens education Protect a spouse's retirement plan But which type is right for you? W W W . L E V E R E D C O M P A N Y . C O M / L I F E - I N S U R A N C E TERM VS PERMANENT There are generally two major types of Life Insurance TERM LIFE PERMANENT LIFE Term insurance policies provide coverage for a Permanent insurance policies provide long set period of time, or term and builds no cash term coverage and remains in effect until the value. policy holder's death, provided that the premium payments are met. Term insurance policies are considerably less expensive than permanent insurance policies Most permanent insurance policies also adds with the same face value. However, the term some type of savings component that builds stops when the policy holder stops the cash value over time. The downside, is that monthly premium. This is a great cost the initial premiums are considerably higher effective option for a termporary time or than a term insurance policy of the same face "term". amount. Permanent insurance falls into four main categories with several unique features. YOU MAY THINK OF TERM INSURANCE LIKE RENTING AND PERMANENT INSURANCE LIKE OWNING. BOTH CAN PROVIDE THE SAME PROTECTION BUT WHAT SUITS YOU DEPENDS ON YOUR NEEDS. W W W . L E V E R E D C O M P A N Y . C O M / L I F E - I N S U R A N C E T Y P E S O F P E R M A N E N T L I F E I N S U R A N C E WHOLE LIFE INSURANCE Whole life insurance are the simplest and most common type of permanent life insurance. Premiums generally remains the same for the life of the policy, with the death benefit and cash value rate of return fixed or guaranteed. UNIVERSAL LIFE INSURANCE Universal life insurance offers the flexibility of varying the amount of your premium payment. However, it also offers a guaranteed minimum death benefit as long as the premium is sufficient to sustain it. If the premiums aren't sustained then the death benefit can be reduced. INDEXED UNIVERSAL LIFE INSURANCE Indexed universal life insurance also offers varying flexibility to the premium payment and payment timeline. In this type of policy, the cash value participates with the global index markets (S&P 500, Euro Stoxx 50 and Hang Seng) but not tied directly to the market. It provides a downside guaranteed floor to avoid losses and a cap that limits the growth to a certain percentage. VARIABLE LIFE INSURANCE Variable universal life insurance premiums are also flexible but subject to a minimum needed to keep the policy in-forced. The premium and cash value can be allocated into investment accounts that offers various levels of risk and rewards. FEATURES UNIQUE TO PERMANENT INSURANCE Living Benefits - Access to cash for long term care or terminal illness Premium Flexibility - allows premiums to be paid for a specified time schedule Tax Advantages Guaranteed Coverages Stable Premiums W W W . L E V E R E D C O M P A N Y . C O M / L I F E - I N S U R A N C E An Illustrative Approach T H I S H Y P O T H E T I C A L E X A M P L E I L L U S T R A T E S T H E G E N E R A L D I F F E R E N C E S B E T W E E N A T E R M L I F E V S P E R M A N E N T L I F E I N S U R A N C E . A S S U M I N G A H E A L T H Y 4 0 Y R O L D M A L E , N O N - S M O K E R F R O M C A L I F O R N I A A N D A B E N E F I T C O V E R A G E O F $ 5 0 0 , 0 0 0 . T H E P E R M A N E N T L I F E I N S U R A N C E I L L U S T R A T E D I N T H I S E X A M P L E W O U L D B E S I M I L A R T O A N I N D E X E D U N I V E R S A L L I F E I N S U R A N C E P O L I C Y C O M P A R I S O N T E R M P E R M A N E N T D E A T H B E N E F I T A M O U N T $500,000 $500,000 TOTAL COVERAGE AMOUNT R I S K R A T I N G PREFERRED PLUS PREFERRED ELITE BASED ON BEST MEDICAL RATING P R E M I U M P A Y M E N T L E N G T H 25 YEARS 25 YEARS TIMELINE TO PAY PREMIUM P O L I C Y I N F O R C E D T E R M 25 YEARS LIFETIME COVERAGE TIMELINE OR EXPIRATION I N T E R E S T R A T E O F R E T U R N MIN 2% FIXED OR ZERO CASH VALUE GROWTH RATE AVE RATE 7.75% L O N G T E R M C A R E R I D E R UP TO 2% OF DEATH NONE BENEFIT (DEPENDS ON AVAILABLE LIVING BENEFIT PROVIDER) P O T E N T I A L C A S H V A L U E ZERO $246,673 HYPOTHETICAL AMOUNT AT AGE 65 P R E M I U M A M O U N T $70/MONTH $479/MONTH MONTHLY CONTRIBUTION W W W .
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