|
|
 |
|
GROUP
LIFE INSURANCE AND PERSONAL LIFE INSURANCE
Is
there a difference?
Life insurance serves many purposes
in an insurance portfolio. In the event of death,
it serves to protect the family by providing an
ongoing income, debt elimination, funds for emergencies,
and education funds. Life insurance is also very
effective in allowing businesses to continue operating
in the event of a death of a shareholder or partner;
funds are used to buy the business interests from
the surviving family members. Estate conservation
is another role that life insurance plays where
funds are used to reduce or eliminate any remaining
tax liabilities upon death. Estate conservation
ensures all assets are secured for personal heirs
rather than for government bureaucrats (taxes).
Life insurance can be obtained
on a group basis and on a personal basis. The
following table is a comparison of six differences
between group life insurance and personal life
insurance:
| Personal |
Group |
| You are the contract owner. You have total control! |
The employer or association director is the contract owner. Should the employer/association decide to remove
coverage, they can! |
| The contract is portable and is not dependent on where you work.
|
Group insurance usually ends 31 days after leaving an employer. Some employers do not have group insurance. |
| Term insurance is convertible to permanent insurance at any time without medical evidence. |
Group life insurance is only available as term insurance. Convertibility is not
available until after you leave your employer. The products
to which you may convert are costlier and lower in quality than the permanent products available personally. |
| Term insurance premiums (and subsequent renewal premiums) can be guaranteed. Permanent
insurance premiums are guaranteed level and will never increase. |
Group life insurance premiums can increase
every year based on the claims experience
of the group. |
| Coverage can never be cancelled or altered by the insurance
company. |
Coverage is assessed once per year by the insurance company
and can actually be cancelled at that time. |
| Term rates are sometimes higher than group rates for older age groups. Rates for younger
age groups are usually lower than group rates. |
Group term rates are slightly lower than personal term
rates for older age groups. Rates for younger age groups are usually higher than personal rates.
|
Are there risks to having ONLY group life insurance
coverage?
...Possibly- if you answer no to any of the following 6 questions:
- Will you be insurable (to successfully apply for personal coverage) if you leave the group voluntarily?
- Will you be able to afford the COST TO CONVERT TO PERMANENT COVERAGE when you leave the group at an older age?
- Does your group coverage cover you for ALL RISKS? Does your group coverage cover you for ALL CAUSES OF DEATH?
- Will you be insurable (to successfully apply for personal coverage) should your group coverage suddenly stop?
- Are you aware that your optional group coverage may be significantly more expensive than personal coverage?
- Overall, does your group coverage provide the TOTAL AMOUNT OF CASH your family needs in the event of your death? (There are maximum allowable coverages within groups.)
HOW DO YOU INSURE YOUR ASSETS?
Asset |
Value |
Insurance |
|
|
Home |
$150,000 |
$150,000 |
100 % |
|
Contents |
$50,000 |
$50,000 |
100 % |
|
Car |
$20,000 |
$20,000 |
100 % |
|
Jewelry |
$5,000 |
$5,000 |
100 % |
|
Vacation Property |
$75,000 |
$75,000 |
100 % |
|
Money Machine |
$1,440,000* |
$150,000 |
10.4 % |
|
* $4,000 per month X 12 months X 30 continuous
years of working. |
|
In case you haven't figured it out, the
"Money Machine" is YOU!!! Without YOU and
your ability to provide an income, your
family or business may be devastated.
|
 
Do
you want information on life or disability insurance,
a quotation, or a no-obligation Needs Analysis
conducted for you?
E-mail: protect@barkermoney.com
|
|
 |
|
