A Numbers Game – Understanding The Premium Leverage

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In my opinion, the #1 reason to own a permanent life insurance is the DEATH BENEFIT. This is the tax-free lump-sum payment your loved ones or business concerns would receive if you die, but not the only reason when you consider that permanent life insurance, depending on how the policy is structured, can provide you with valuable living benefits, as well as accumulate cash values – a nice option for the future.

The key to any life insurance policy is it must be in-force no matter how long you live
with the company paying a benefit to your designated beneficiaries.   It must outlive
you!  Otherwise, the insurance company wins.

Premiums for life insurance, which are an expense, but are the leverage against the face amount of the policy.  The “PREMIUM LEVERAGE”
is your total cost to provide for these discounted dollars to age 100 or longer because you recognized the need for owning life insurance
CA$H over a lifetime and not just for a period of time with term life insurance.  

What you pay will usually be significantly less than the face amount of the policy?  However, there are situations as you age and acquiring
a new policy.  The premiums paid against the face amount must be looked at closely.  

The younger you are the greater the premium leverage.  What age do you want to start creating the premium leverage?

Marc Maretsky Personal Insurance Services based in Beverly Hills, serves all of California and the United States.  I help my clients acquire life, disability, long-term care, and critical illness insured solutions, as well as enroll them into Medicare when eligible.

“No matter how fast technology changes our world and everything around us.  I believe the personal touch and a human voice are more important than ever.”

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