Why Insurance? 

Insurance is a contract between a person or business and an insurance company to protect something they value.  We all are familiar with insurance for homes and autos.  But more important than the “things” we own is our life and how our life benefits those we love.

Why Buy Life Insurance? 

Let Us Count the Ways

British poet Elizabeth Barrett Browning penned the immortal line:

"How do I love thee, let me count the ways."

There are many reasons to own life insurance and when you start to count the ways, the reasons all show love of family in many ways.

We know from LIMRA research that 85 percent of consumers agree that "most people need life insurance."  LIMRA estimates over $15 trillion (with a “T”) of unmet life insurance needs.

So in the spirit of Elizabeth Barrett Browning "let us count the ways" people think owning life insurance is a statement of love and caring:

Help with Expenses After Death

  •   Ease the burden of loss from a premature death by covering final expenses

  •   Replace lost wages

  •   Support the family in taking care of daily expenses

  •   Assist with college or other education or re-employment expenses

Relieve the oppressing burden of debt for loved ones

  • Help pay off the home mortgage

  • Pay off student loans

  • Pay off credit cards

Cash Value Accessible for you and Your Loved Ones

    Cash Value in a life insurance policy gives a protected and very flexible source of cash for whatever you and your family need for greater happiness. See My Future Potential page

Group Insurance at Work 

 

A little over half of  employers offer group life insurance to their employees.  This has the advantage that you are sure to get the coverage if you want it and your employer offers it.

It has the disadvantage that the employer owns the policy and it goes away when you change jobs.  It has the disadvantage that the amount of coverage is usually limited.  Rarely will it cover the 7 years of annual income that keeps a family safe and comfortable.  And group insurance almost never builds up cash value.  But most critically, group insurance does not lock in your price for when you want to buy life insurance on your own.

 

Why Cash Value Life Insurance? 

Some life insurance provides cash value which grows and compounds over the years and which is available to use both while you are living and as a death benefit .  GTED specializes in customizing cash value life insurance policies to meet the variety of needs “you” care about.  Money can be borrowed from this cash value at any time for any reason and repaid at any time at any schedule.

 

Why Convertible Tern Insurance? 

 

If you are at a point in your life where there is not the available funds for all the cash value life insurance that you want, then convertible term insurance can help.

For a person insurance prices increase every year based on your age.

But they also vary based on your health.  If accident or disease affects your health in the future then insurance can become expensive or much more expensive or completely unavailable at any price.

Convertible term insurance locks in the price of your term insurance for 10, 15, 20 or 30 years.

It also locks in your underwriting category.  If you are rated highly when you get the term insurance then that same high rating can be used to price any cash value insurance you desire in the future.  And the prior year term insurance premium can be used as a credit towards the purchase of the cash value insurance.  Ask me for details.

 

Insurance Terms

 

Every business uses terms that might not be familiar to everybody.  Here are some that apply to insurance.

 

Premiums are the payments made to the insurance company by the customer who purchases an insurance policy

Cash value is a calculated amount of cash available to the customer with certain select kinds of life insurance policies

Death Benefit is the non-taxable amount the insurance company would pay to your designated beneficiaries if you die

In the Penn Mutual policies used by GTED, the cash value grows by non-taxable dividends and guaranteed payments paid by the company

In these policies the cash value can be borrowed at any age for any reason

In this policy, borrowed cash value can be repaid as you choose at a net interest rate of 0.65% or 0.0%

In Texas an insurance policy is a binding two-way contract regulated by the state of Texas.

  • If the policy is kept in force, borrowings from the policy are not subject to income tax.

  • Unlike IRAs and 401Ks and 457Bs there are very few restrictions on borrowing from your policy's cash value and no tax consequences either in penalties or income tax.

  • Insurance policy death benefits in almost all situations are not subject to income tax.

  • It is extremely easy to change the beneficiary or the owner of an insurance policy.  This is much easier than revising a will or changing the terms of a revocable or irrevocable trust.

  • An insurance policy can pass benefits to beneficiaries without the delay of probate or other legal procedures at death.

  • Contact us so that we can plan together on how you can benefit from the unique advantages of dividend paying whole life insurance from a mutual insurance company.

  • Dividend paying whole life insurance from a mutual insurance company provides unique benefits.

  • A mutual insurance company has no outside stockholders and never has to make investment and income decisions based on quarterly results and stock prices.  A mutual insurance company is owned by its policy holders and works for their benefit.

  • Dividends and other returns are paid to policy holders based on the success of the company.  For the policies recommended by GTED the dividend rates are very stable, much better than bank interest, and do not fluctuate like the stock market.  

  • In Texas, the benefits and cash value of an insurance policy are protected from bankruptcy and law suits similar to a homesteaded home.  Your value is safe.

  • Tax Benefits:If a few simple rules are followed, the growth in cash value in a whole life policy from dividends and other payments are not subject to income tax.

 

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Why Term Life?

Life insurance is a crucial step in planning for your future and the future of your loved ones.

  • Life Term Insurance provides life insurance protection for a specified period of time. Term life is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.

  • Whole Life Insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy.

  • Life Term Insurance provides life insurance protection for a specified period of time. Term life is sometimes convertible to permanent coverage, providing you with flexibility as your needs change.

  • Whole Life Insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy.

  • A term life policy gives temporary death benefit protection, but builds no cash value.

  • At the end of the "term" the policy goes poof and no value remains.

  • But temporary death benefits can have a limited use in your plans.  Contact us to discuss.

  • The price of life insurance depends on your age and your underwriting rating - based on your health and habits.

  • Nothing can stop us from getting older.

  • But Convertible Term Life Insurance can lock in your underwriting rating.

  • GTED can offer Convertible Term Life insurance with terms of 10, 15, 20 and even 30 years.  

  • If you are assigned a favorable rating when you get your term policy, then during the term you can convert to cash value building whole life at the same favorable rating.

  • This conversion right is available even if you have a serious accident or suffer serious health problems that would normally result in a lower rating and much more expensive life insurance.

  • Contact us to plan whether this could help you with what you are thankful for.

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