Installment Life Insurance Option

BOCA RATON, Fla. - Oct. 15, 2013 - PRLog -- Now that life insurance buyers can choose an Installment Option to determine how the proceeds of their life insurance policy are paid to their beneficiaries, the life insurance industry is experiencing historic change.  Until the installment option was available, there was only one option available to every policy owner of a life insurance policy for how the proceeds are paid – a Lump-Sum.  Recognizing that insurance companies have more time to pay the death benefit, premiums can be as much as 50% less for the same amount of insurance with a lump-sum death benefit option.  Equally as important, the policy owner can choose to purchase up to 50% more death benefit for the same premium as a lump-sum payout.

On average, according to industry statistics, death benefits are exhausted in less than 3 years.

LUMP-SUM PROCEEDS OR ANNUITY TYPE PROCEEDS?  After constant black swan events in the market that have negatively impacted investment returns over the past several years, a growing number of insurance buyers are concerned about the ability of their beneficiaries to successfully manage a lump-sum payment over an extended period of time - WITHOUT LOSING PRINCIPAL.  The increasing frequency of these events has driven life insurance buyers to demand a better solution. The “Installment Life Insurance Option” guarantees that life insurance proceeds can be protected from these inevitable threats.

Choice:  The “Installment Life Option” allows the policy owner, at the point of purchase, to choose how many years to defer the death benefit, in equal installments, regardless of market or economic conditions.  Between 5 and 30 years, proceeds are paid in pre-determined amounts that are guaranteed.

Win –Win: Because the life insurance company is guaranteed more time to pay out proceeds, the savings are passed to the consumer in the form of lower premiums or greater benefits.  With more time to pay the death benefit, the premiums are up to 50% less for the same amount of death benefit or the insurance buyer can purchase up to 50% more death benefit for the same premium as a lump-sum payout.  By choosing a greater number of installment years, the premium savings is increased.

The surge in annuity sales over the past several years is evidence that principal protection and guaranteed results are critically important to millions of consumers.  “Installment Life is the perfect mix of death benefit protection with the guaranteed certainty of annuity payments”, says Matthew Logan of Life Insurance Concepts.

Most owners of life insurance are unaware of this limitation.  Not true anymore! With the “Installment Life Insurance Option”, the insurance buyer has the opportunity to determine the precise amount of life insurance needed each year to guarantee the beneficiaries have the exact amount of money when needed most.  Using the “Installment Life Needs Calculator”, the insurance professional and the insurance buyer are able to determine exactly how much insurance is needed each year and for how many years.  Regardless of economic conditions, these payments are guaranteed.

The “Installment Life Option” is available for both term and permanent insurance from leading U.S. life insurers and is available through Life Insurance Concepts, Inc. at InstallmentLifeInsurance.com (http://www.installmentlifeinsurance.com/).

Special Needs Families:  “For families with special needs children, there is no room for error when it comes to life insurance proceeds and the “Installment Life Option” now provides these families with a solution that meets the primary objective of guaranteed principal protection” says Ted Bernstein, creator of the “Installment Life Insurance” platform.  The proceeds can still be paid to special needs trusts or carefully chosen beneficiaries, but the peace of mind that comes from knowing the proceeds can be protected from investment risk is invaluable.

“A primary concern of many of my clients is the thought of their children losing their inheritance to creditors, litigation, conmen or divorce, which is one of the reasons why the Irrevocable Life Insurance Trust has been so popular for so long.  The Installment Life platform goes the extra mile by not only spreading out the death benefit payments to reduce those threats but by saving a large portion of the premium payments during life.  An Installment Life Insurance Policy in an Irrevocable Life Insurance Trust is an asset protected wealth transfer plan on steroids”, says Michael Wild, Attorney in Fort Lauderdale, Florida.

Mortgage Protection Solution: The “Installment Life Option” is the perfect mortgage insurance product.  Traditional mortgage life insurance policies are based on the outstanding amount of the mortgage.

Instead, the “Installment Life Option” offers a far superior result.  Rather than buying a policy for the remaining mortgage balance, it is more advantageous to buy a policy based on the monthly mortgage payment, including interest, taxes and insurance for the precise number of remaining years.

Example- a person with 21 years remaining on a $600,000 mortgage would typically purchase a life insurance policy for $600,000.  Using an “Installment Life Option”, the policy would pay either 252 GUARANTEED monthly payments of $2500 or 21 annual payments of $30,000 per year.  Aside from the tax benefits gained by continuing to make the mortgage payments, the premium savings in this example will generate approximately 30%, each year. Most tax advisors tell their clients that a mortgage payment offers an important income tax deduction.

“Installment Life Insurance” Defined:

Ability for owner to transform lump-sum proceeds into guaranteed installments.

Offers the most competitive premiums available – everything GUARANTEED.

Reduces premiums as much as 50% for same amount of death benefit.

Protects life insurance proceeds from market risk.

Tremendous flexibility, installment periods between 5 and 30 years.

The biggest challenge we face as a firm and an industry is raising awareness of this important option”, says Ted Bernstein, CEO of Life Insurance Concepts. Almost everyone can upgrade their insurance coverage and we are uniquely qualified to help every person with an existing insurance policy consider the advantages of Installment Life…The cost of doing nothing is too high”.

“We are working with several carriers to develop the next product generation to offer our clients more options and flexibility, further enhancing their planning objectives”, offers Mr. Bernstein.  We insure nearly every other aspect of our lives:  our health, our homes, our vehicles. Why not protect your life insurance policy from the risks you can’t predict and can’t afford to recover from, especially after you’re gone?”