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5 Life Insurance Mistakes to Avoid

There are numerous compelling reasons to consider purchasing a life insurance policy. For instance, this could reduce the financial burden on your loved ones upon passing. Perhaps you have seen firsthand the economic impact of death on remaining family members. If you’re looking for life insurance or have previously purchased a policy, make sure you don’t jeopardize your family’s money by making these blunders. Allowing Premiums to Run Out When you buy life insurance, you must pay a premium for coverage. Once again, these premiums can be determined by your insurance risk class, which is determined by your age, health, and other factors. The benefits of a universal life insurance policy, such as low-premium assured death payouts for life or a specified length, might be affected by late premium payments. Unlike term life insurance, universal life insurance is a permanent insurance policy that provides financial stability for life at the lowest possible cost. While many of these plans include a cash surrender value, universal life with secondary guarantees focuses on providing the most insurance for the least amount of money. Some of these policies are susceptible to premium payment timing. For example, suppose you miss a monthly payment or send your check more than a month late. In that case, the insurance provider may no longer guarantee your coverage. Taking a Loan from Your Policy Permanent life insurance plans with cash values may be a source of funds if you need to borrow money. If you do things right, you can usually use the cash value of a permanent policy for whatever you want, including tax-free withdrawals and loans. This is a huge benefit but must be appropriately handled. For example, your earnings will be subject to taxes if you take an excessive amount of cash out of your insurance, which then expires or runs out of money. Not to mention that you may considerably limit the death benefit available to your beneficiaries if you die. If you have taken too much money out of your policy and it is set to lapse, you may be able to keep it by paying more premiums if you can afford them. However, before taking any money out of a life insurance policy, you should verify with a tax expert and keep a close eye on the cash value. Failure to Review Your Policies and Needs  Examining your life insurance coverage is vital, especially when a major life event occurs. In addition, your life insurance requirements will undoubtedly vary during your term. All these factors influence how much life insurance coverage you require. So, once a year, evaluate your insurance with your advisor. You can also purchase additional coverage if necessary. If you require the assistance of a Sun Life advisor, you can do so. Insurance is an Investment That Should Not be Overlooked The Financial Industry Regulatory Authority (FINRA) considers variable life insurance policy investments. Therefore, you should as well. A variable life insurance policy is a permanent policy that provides life insurance with a cash value. A portion of the payment is used to pay for life insurance. At the same time, the remainder is invested in various investments comparable to the mutual funds you select. The value of these accounts, like mutual funds, fluctuates and is determined by the success of the underlying investments. People frequently look to these policy values in the future to boost their retirement income. A variable life policy must be sufficiently funded to maximize cash value growth. Making proper premium payments is part of this, especially during low investment returns. Paying less than you intended can significantly impact the future monetary value accessible to you. It is also critical to evaluate the performance of your policy and rebalance your accounts regularly, just as you would with any investing account. When you set up your account, this can help you avoid taking on more risk than you had originally intended to take on. Failure to Update Your Beneficiaries It is critical to specify a primary beneficiary as well as a contingent beneficiary. You should also review your beneficiaries with your advisor whenever you have a significant life change. This covers marriage, divorce, childbirth, and the death of a beneficiary. Then, when your time comes, the money will go to the people you designate.
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Michael Crowe

Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the suburb of Skokie on Chicago’s northwest side and graduated from Niles Township ( East ) high school In 1964. Two years later he joined the US Air Force in November of 1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He volunteered for a number of especially dangerous missions on his days off, such as flying as a door gunner on a US Army helicopter and as a technical assistant on a psychological operation on an Air Force O-1E observation aircraft. Capping off his impressive accomplishments was winning the coveted Base Airman of the Month for March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper read by every service man stationed in the Pacific theater of operations. After his Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona where he met and married his wife, Lequita. He graduated from Arizona State University in May, 1973, and after a 30-plus year career as a financial advisor he joined a number of service organizations including Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the National Federation of Independent Business and became the longest-serving chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways and Means & Senate Finance committees. He then joined Disabled American Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and became Chapter 8 Commander in May of 2019 where he served with Distinction for 3 years before being “ termed out”. The next year, as Vice Commander, he won the title of National Champion Recruiter!

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