Aboutleboyd Expertise I can answer questions relating to life insurance, estate planning, business succession/continuity planning and tax-effecient retirement planning. I have advised clients for many years on these areas, and how they relate to life insurance.
Likewise, I have worked with many on Long-Term Care needs.
Experience I have been a top producer for the past 5 years. Prior to that I was the CEO of an international company, having the concerns from a clients perspective (now having been a client of NYL for more than 15 years)
Organizations Society of Financial Services Professional
Million Dollar Round Table
Education/Credentials In addition to an BBA and an MBA from a top-10 school. I have earned the LUTCF, NASD Series 6, 7, 63 and 66 licenses.
Awards and Honors Top Life Producer
Top Long-Term Care Producer
Question i have always had life insurance, but have been unclear as to how they work. If for instance i should pass, then whatever the amount the policy is for, a check for that amount will go to my beneficiary? what if i pass of natural causes at old age, is there still a check?
Also i would like to get more life insurance so if you can direct me to some legitimate companies, i would greatly appreciate it.
Answer Mike,
The general idea is that if the policy is still "enforce" (insurance term that means "active" or the contract still exists), when you pass the beneficiaries will be paid the check.
There are two types of life insurance. The first is called "Term Life". This is a policy that is only needed for a period of time, and not necessary after that period. For example, you can buy a 20-year term. The premiums (monthly payments) are fixed for the 20 years, but at the end of the term the policy either goes away or you have the option to pay higher premiums to keep the policy enforce. Generally, the premiums will become so high you will have to drop the policy before age 70.
The second type of life insurance is called "Permanent Life". This policy also has a fixed premium, but never changes. They also, typically, grow "cash value" or equity in the policy, that in later life can be used to pay the premiums and therefore the insured can stop paying sometime in the future. The policy will be in place for the whole life of the insured and pay even if you pass at an old age. In fact, if you live a really long time (used to be 100, with new policies its 121) the insurance company will give you the check, even though your still alive.
It might be obvious, but permanent life starts out with higher premiums than term life. However, after many years the premium of the term would be higher than the premium of the permanent.
This is general information, as there are many options available between the two. The idea is to ask, "Why am I buying life insurance?" If it's to cover the family if you die prematurely, then a term policy might not be a bad option. If it's to use the cash value in the future (like using the policy as a savings account), then permanent might be better. If you expect to have an estate tax problem, permanent is definitely better.
The best insurance companies are New York Life and Northwestern. Then there are several good ones after that, including Sun America, Banner Life, John Hancock, Prudential, Mass Mutual, MetLife and others I am sure I am forgetting.
