Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security or investment. Some universal life policies only pay to age 90, 95, or 99. Universal life is more flexible and less expensive than whole life because policyholders have more control over the policy’s cash value. Later in life, it is difficult to replace these policies because you can never buy the insurance cheaper. For instance, they can use the cash value to cover premiums if they need to suspend or reduce their premium payments. No matter the challenge, Wayne has always demonstrated a great level of industry knowledge and offered great solutions with a complete description of options and their consequences. In this scenario, the amount payable to the beneficiary will be lower, but you had the cash value in hand. Will rising policy costs begin to consume the cash value? “I bought a universal life insurance policy at age 37. Shrinking the size of the policy’s face value can be an effective strategy. That’s because permanent insurance policies (universal life or whole life) have an … Your financial accounts will thrive using Mr. Citron's years of experience and education in any of your financial dealings. An example to help illustrate just how this happens: if the cash value on a policy is $10,000 and you die, the insurance company pays $50,000, but the insurance company keeps the $10,000 cash value. Wayne served as my expert witness in litigation against a broker for failure to procure an appropriate policy. One is the death benefit. The policy has a death benefit of $50,000 and I’m paying $1000 per year premiums. I have worked with Wayne in the past and he is a businessman who can be trusted. His testimony was so beneficial that we were able to use that expert report to defeat plaintiff's claim for health insurance premiums in excess of $250,000; and, have the claim dismissed. Wayne has repeatedly given very sound advice on financial and insurance matters. Yes, these are fees that are a penalty if you cancel your permanent life insurance policy within a certain time frame. But while it won’t affect future insurability, there’s a tax hit if a client surrenders his policy prior to death. You can roll the cash value into a different type of life insurance product, such as a whole life policy or a single premium immediate annuity. Lawsuits continue to mount from policy owners who feel they have been misled. To obtain an InForce illustration, you can contact your insurance company directly or the agent who helped you purchase it. You may have several choices that can make sense. He does extensive research before making any recommendations leaving his client confident to move forward with his findings. Before you take any action or inactions regarding your policy, we recommend that you examine your policy closely. It's a good idea to talk with a local insurance agent to better understand your life insurance options. CEO, Outlook Life, Inc, Most of the U.S. So a universal life policy can be a bit of a gamble—literally. The information contained herein should not be construed as the provision of personalized investment advice. I have been doing business with Wayne for many years. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. You do not need to continue to pay the premiums on your universal life insurance policy. Typically, you can obtain one free InForce illustration per year. I found him to be extremely knowledgeable and creative. If all of these obligations are already taken care of and your assets are sufficient for your wife to keep her standard of living, then you no longer need life insurance. I have referred Wayne to a number of clients over the past 5 years. Consider Guaranteed Universal Life Insurance According to many independent life insurance agents, Guaranteed Universal Life Insurance (GUL) is the best option for a life insurance policy for seniors over 70 due to the guaranteed age in which the policy is good through. (504) 587-9144. Director of Administration at Louisiana Bar Foundation. For instance, you may want to see how lowering the death benefit will affect policy projections. Wayne is great to work with, pays attention to detail, and gets great results. Wayne has helped me to obtain my financial goals. If they have permanent life insurance, one option is cashing out the policy. If leaving an inheritance is your priority, a whole life or single premium whole life policy can be a good option. Most of the time the primary concern is the loss of income. Owner, Rabadash Records and Music Consultant. The cash value option that's part of a universal life policy may be available for you to withdraw or borrow against in an emergency. This is how an insurance company lowers their risk. Seeking his advice on many endeavors, he has never given me anything except sound, solid experience and expertise in our workings. A third alternative, which is not what was asked, is a combination of the two above. I’m pretty frustrated after looking into the policy. Most importantly, an InForce illustration also gives you future projections based on current assumptions. Let me tell you what an awesome group this is and how blown away my wife and I were with Wayne. Cash value is the cash build-up in that savings account. The sooner you cancel your whole life the worst of an investment it will be. Should I continue paying the premiums?”. A “cost-basis report” can also be helpful. Life insurance is intended for is the financial loss or hardships that someone might experience should your life end. She has been on the forefront of alerting consumers to the inherent problems with universal life insurance—before it was headline news in the Wall Street Journal and New York Times! Some universal life policies only pay to age 90, 95, or 99. “You got to know when to hold up, know when to fold up, know when to walk away, and know when to run.”—Kenny Rogers, “The Gambler”. Just because whole life policies can be cashed in does not necessarily mean that they should. I feel that any dealings that I have had with Mr. citron were positive. Dave's ANSWER: You should close it once you have term life insurance in place. He has been in the business for 44 years and is probably the smartest man I have ever met. One can feel reassured that his actions will be based on copious amounts of research leading to objective conclusions. Wayne exemplifies the word "knowledgeable" when it comes to Insurance. Life expectancy calculators found on Livingto100.com and the Blue Zones Vitality Test can be helpful. Traditional life insurance was originally developed to provide beneficiary death benefits in the event of the insured person's death. Could my family lose the house or car? Similarly, you shouldn't hesitate to cancel a life insurance policy—or allow it to expire—if you've identified that you no longer need it. Canceling your whole life, is definitely and option. He has a mastery of policy content and can articulate it clearly. An InForce illustration provides a picture of your insurance policy as it currently stands. His vast understanding of the workers compensation industry has made an otherwise tedious task into a seamless and efficient venture. I appreciate his honesty and hard work in looking out for my best interest. (We’re not sure why these policies continue to be described as “permanent policies,” but they are.). However, it’s probably not the best choice in the log run. They do the job of covering your income if you die, but they also act as a savings account. He is extremely aware of the bottom line and very sensitive to his client's needs while performing at a 110% level. If the crossover point for your policy will be reached before age 90 and you are 80, active and healthy with a good family history of longevity, your universal life policy may be a bad bet. Universal life and indexed universal life (IUL) policies have changeable costs—especially, mortality costs that rise as the insured ages. The most profitable way to cancel your coverage is with a life settlement. By reducing the death benefit, you reduce the mortality costs of the policy. As you age and are closer to dying, the insurance company lowers their risk by keeping the cash value. Wayne is dedicated and detail-oriented. Wayne is hard working, experienced and knowledgeable in the insurance field. 1-800-CITRON-1 The two amounts – the insurance and the cash value loan — together will approximately equal the face value of $50,000 minus any loan interest. I wholeheartedly recommend Wayne to any attorney looking for a knowledgeable and hard-working expert witness who really knows how to think outside of the box. I would def not cancel it, but rolling into something like and Indexed Universal Life Policy could be a really smart idea. Thanks again for your help with Steven (the adjuster) yesterday and taking his phone call. If the policy does not lapse for non-payment of premium and you die, then the insurance company will pay the $50,000 minus the loan you have taken. As it turns out, there isn’t a lot of “good” for aging policy owners who are seeing their premiums skyrocket. A universal life policy will expire if you stop paying the premiums and the cash value becomes depleted. The buyer will then receive the death benefit when you die, and you will walk away with a lump sum up front at the time of purchase. The not-so-funny joke about how to avoid universal life policy problems is, “Don’t live too long!” And unfortunately, there’s truth to this. A second category of life insurance policies are known as “Universal life” or “Variable life” policies. Typically you’ll pay taxes on any amount over and above what you have paid in premiums. Withdrawing some cash will shrink the policy but won’t end it. (If you have a 1-800 customer service number on your policy, that’s a perfect starting point.) This can be a reasonable option if you believe your policy will outlive you rather than vice versa. He's owned, operated, sold insurance over the past 40-something years. Life insurance is bought when the beneficiary needs the insurance value to maintain their standard of living once the insured has past away. 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