We get calls all the time about AARP life insurance and that clients are interested in this.   The bottom line is that AARP has partnered with New York Life Insurance Company to offer life insurance to its members.  No medical exam is required and only 3 medical questions are asked on the application.  Since there is minimal underwriting the premiums are note going to be more than a fully underwritten product.   With that being said it may be of benefit to some to have a product not fully underwritten as health may be a concern.  If that is the case there are other companies that offer similar products that may be even more competitive.

Did you know that the life insurance carriers like when you buy term life insurance?  A lot of clients we speak with think  that it is the agenda of the insurance company to sell them permanent insurance because it costs more.  While of course life insurance carriers want you to buy permanent products, they are quite content when you buy term.   Only about 2 percent of term policies ever pay out a benefit and therefore it is highly profitable for them.   A good option for many is to buy a return of premium term product.   This allows you to have best of both worlds with term, but return of premium if you outlive the level term.  If you are not familiar with this option you should ask about it.  It is usually more beneficial the younger an insured is.

With portfolios down 30 and 40% from a plunging stock market, it is nice to see steady growth in my permanent life insurance policy.  The cash value in my dividend paying whole life insurance has a guaranteed interest rate in the cash value and it will never decline in value.  While the internal rate of return may not be huge, it is good to know that it is positive every month.  I will also receive the value of a dividend if it is declared by the insurance company.  Usually good mutual life insurers will declare a dividend.   It is not guaranteed, but if you have a policy with Mass Mutual, New York Life, Guardian, etc. they usually declare a nice dividend.  A dividend is simply the return of an over collection of premium by the company.   They meet their obligations and put enough away in reserves and then declare the dividend back to their policyholders.

On top of my cash value getting better every month, it grows tax deferred.  When I access it I can get to it tax free through preferred policy loans.  At retirement, I can use the cash value as a supplement to my retirement.  First, I will withdraw money from the cash value up to my cost basis, and then use preferred policy loans.    It is truly one of the most flexible and best tax shelters available.  In fact, Walt Disney got cleaned out in the great depression with all of his stocks and only had his life insurance left.   He took a policy loan out of his life policy to start Disneyland.

Like I said, it gets better no matter what.

How will a Paramount Life Insurance Consulant work for you?

• It is very important that we ask all of the pertinent questions?  We can simply break this down into three parts:

1.  Your current situation is different from your friends and family

2.  What are your goals?  (Secure retirement)  Build Income TAX FREE.

3.  The more your consultant (agent) knows, the better your outcome will be. 

Get you know your Life Insurance consultant.  Be sure you mesh with your financial advisors.  This will insure that you have a great outcome for all of your insurance needs.  Start planning your future today.  ING is offering great rates on 20 year Term Life Insurance here:  http://www.ing-usa.com/us/index.htm.