This type of life insurance policy was developed in the late 1980s and initially it sounded like a great life insurance policy to purchase.  You can skip payments, increase your payments, and at some point in your life take a tax-free life insurance loan to supplement your retirement.  

Some life insurance agents promoted this type of life insurance policy as a Private Pension Plan.

What Are the Dangers of Universal Life or Adjustable Life Insurance Policies?

This type of policy can self-destruct in later years requiring the policyholder to take one of two steps.

Dramatically increase the amount of money the policyholder must pay for the life insurance to keep it going.   

Allow the policy to lapse leaving the policyholder with no life insurance at all. 

This Is How the Universal Life Insurance Policy Works:

The Universal life insurance policy is really a term life insurance policy with a savings element or cash value.  Part of your premium payment goes to pay for the cost of the term insurance, part of your money goes to pay for administrative fees, and finally what is left over goes into a side account where the insurance company can either pay you a fixed interest rate or the money can be invested in mutual funds.

This Is How the Universal Life Insurance Policy Can Self-Destruct:

Because the term insurance portion of the Universal life policy is based on adjustable rate term insurance, the cost of the life insurance increases each year.  The older you become the greater the cost. So what will happen eventually is that the pure monthly cost of the life insurance will far exceed the monthly payment that you are making into the insurance policy.  At that point your insurance company will begin to use money in your side account to pay for the increased cost of insurance eventually draining your entire cash value account.

In theory this policy seemed to be win-win situation, but in reality this is become one of the worst types of life insurance policy to purchase because it will either force you to pay significantly more money in the future, or you will be forced to drop the coverage that you can no longer afford the increased premium payments.

How Do I Know If My Policy Is a Universal Life Insurance?

Some life insurance companies in Cincinnati use other names to describe a Universal life policy.  It could also be called a variable life insurance policy, adjustable life insurance policy or some other variation of that name.  Life insurance companies offering these types of products are required to send an annual report to their policyholders.  If you receive an annual report showing premiums paid into the policy and interest paid on the policy it’s likely you have a Universal life insurance policy.

What Options Do I Have If I Own Universal Life Insurance in Cincinnati?

Please contact our agency at 513-662-7000 and we will show you how to receive a projection on your current universal life insurance policy.  As an insurance agency we saw the danger of this type of life insurance policy many years ago and stopped offering universal life insurance policies in 1993 to customers.

One of our licensed agents would be happy to discuss your individual needs for life insurance no matter if it is needed for your business or to protect your loved ones.

Licensed agents are available Monday – Friday by calling 800-998-0662 or 7 days per week online using our Chat System located below. Click on Chat to speak with a licensed agent.

Let’s consider the different types of life insurance. 

Group Life Insurance in Cincinnati (Click here to learn more)

Permanent Life Insurance in Cincinnati (Click here to learn more)

Term Life Insurance in Cincinnati (Click here to learn more)

Do I Really Need Life Insurance?

It completely depends on your circumstances in life.  For instance let’s assume that you are single and no dependents rely upon your income.  Additionally you are not concerned about leaving money to anyone to cover any of your miscellaneous expenses or debts when you die. (Bury me in the backyard or leave my body to science type of philosophy.) You would probably not be disposed to purchase life insurance.

But on the other hand maybe you have debt and would like to leave something to a relative, friend, a charity, or you simply don’t want to leave a financial mess for others to deal with.  Life insurance would be appropriate.

If you are married with no children life insurance would be appropriate if your spouse is dependent upon your income, or you wish to leave funds to pay debts off such as a mortgage, credit cards, car loans etc.

If you are married with dependent children you have the greatest need for life insurance in Cincinnati because other family members are dependent upon you.  When you die so does your income and that can bring dire consequences to your family.

If you find yourself needing to protect your family or pay for debts you should call us for life insurance quotes in Cincinnati, our office number is 513-662-7000.

Which Type of Life Insurance Is Best for Your Needs?

Once again it depends upon your circumstances.  If you are only interested in having the necessary funds for funeral expenses, $5-$10,000 of whole life insurance coverage may be sufficient.

If you need significantly more coverage to pay a mortgage off or to provide family income Term Life Insurance in Cincinnati would be more appropriate because it gives you more coverage for your premium dollars.

Obtain Life Insurance Quotes From A Local Life Specialist! 

Call the Life Insurance Experts at Pathway Insurance. Our office number is 513-662-7000. 

Our next article will discuss a vital topic: This Is What Insurance Agents Won’t Tell You about Your Life Insurance in Cincinnati.

Let’s suppose that a 45-year-old man by the name of Eric happens to be in exceptional health and he requires $500,000 of life insurance protection. A life insurance agent in Cincinnati convinces this gentleman that he should purchase a whole life insurance policy. The policy holder would be required to invest $613.83 each month into this whole life insurance policy.

After 20 years of premium payments Eric invest a total of $147,320.  Let’s assume that a financial emergency occurs and Eric needs to cash out his whole life insurance policy.  The guaranteed cash value would only amount to be approximately $148,310

In this scenario the life insurance company is paying the policyholder less than a 1% return. The life-insurance company will invest those premium dollars and make 6 to 10 times more than what they would pay to the policyholder! This is why permanent life insurance is so profitable to insurance companies. 

Naturally if the policyholder would die in this time the beneficiaries would collect the $500,000 death benefit.

Permanent Life Insurance Policies Are Also Profitable to Insurance Agents.

In this example the life-insurance agent could earn nearly a $7000 commission by selling this policy to Eric. In contrast if this Cincinnati life insurance agent sold Eric a term life insurance policy he may have only earned as much as $1000!  (Commissions paid to life-insurance agents in Cincinnati range anywhere from 40%-120% of the premium.)

There are many financial incentives for insurance companies to promote permanent life insurance policies versus term insurance. Life insurance agents in Cincinnati also have strong financial incentives to sell permanent policies versus term insurance policies.

What’s the Best Type of Life Insurance Policy in Cincinnati? 

In most cases term life insurance is best. There are circumstances where permanent life insurance policies are appropriate such as estate tax planning, business life insurance in Cincinnati, and final expense life insurance to pay for funeral expenses. (You should not purchase a term life insurance policy if you need the coverage to last for your entire life.)

Contact the Cincinnati Life Insurance Experts 

Sometimes policyholders do not get the full story about life insurance options from insurance agents in Cincinnati. That lack of information can hurt you financially and cause you to make one of the biggest financial mistakes of your life.

What Is the Real Truth about Life Insurance in Cincinnati? 

The real truth about life insurance is that sometimes insurance agents are pushed by the insurance companies they work for to sell life insurance policies that are more profitable for the insurance company versus what is best for the insurance buyer.

In the fall of 1988 I began my insurance career as a life insurance agent in Cincinnati when I was hired by Western Southern Life Insurance Company in Cincinnati. For the first few months before I obtained my life insurance license in early 1989 I was heavily involved in their training program learning about the various life insurance products offered.

The training was good but as my manager emphasized repeatedly life insurance is sold, not bought.  In other words you need to learn good sales techniques to convince a prospect to purchase life insurance policies that they know they need but they don’t want to buy.  What type of life insurance policy would insurance companies rather you buy?

Insurance Companies Would Rather Sell You a Cash Value Life Insurance Policy Versus a Term Insurance Policy. Why?

Simply because it is much more profitable for the insurance company if you buy a permanent life insurance policy. Click here to see why permanent life insurance is more profitable to insurance companies.

Please do not misread what I’m emphasizing with my statements. Life insurance companies are not engaged in illegal or unethical business practices by promoting permanent life insurance policies any more than a car rental company promoting rental car coverage for an extra fee that is already covered by most personal automobile insurance policies!

Permanent life insurance policies are appropriate in my opinion when the coverage is used for estate taxes, business life insurance in Cincinnati, or where you only need a small amount of coverage for final expenses.

When You Buy the Wrong Kind of Life Insurance in Cincinnati You Could Leave Your Families Devastated Financially

If you buy the wrong kind of life insurance policy in Cincinnati leaving yourself underinsured, your family may need to make major lifestyle changes because when you die so does your income.

Talk to the Cincinnati Life Insurance Experts

We are the life insurance experts in Cincinnati.  Contact us today to discuss your life insurance needs. Call 513-662-7000, or send an e-mail to Jack@pathwayinsurance.net

Term Life Insurance-Term life insurance is pure insurance. There is no savings element to term life insurance and it provide you the maximum amount of coverage for the least amount of money.

Example -A $500,000 term life insurance policy that is guaranteed level for 30 years would cost around $107.50 per month for a 45-year-old man in excellent health with one company.  A whole life insurance policy would cost you nearly 6 times more money. Term insurance can offer guaranteed rates from 10 years to 30 years. (This means the rates will not change for the time period you select.)

Primary Advantage of Term Life Insurance-Term life insurance provides you the most coverage for your premium dollars.

Primary Disadvantage of Term Life Insurance-Term life insurance will only last as long as the term that you pick.  So in other words if you pick a 10 year level term policy that is so heavily advertised on television today, in the 11th year the rate on the term insurance will go up significantly.  How much could it go up? 10 to 20 times the original amount.  So if you start off at $30 per month your rate could go up to as high as $600 per month and it will increase each year after that. (Level term policies automatically convert to annual renewable term policies after the period of time goes past the date that you locked your rates in.)

Don’t Make This Mistake When Buying Term Life Insurance in Cincinnati.

You might be making a significant mistake if you only purchase a 10 year level term life insurance policy thinking that it won’t be any problem to qualify for a new term life insurance policy 10 years in the future.  You should purchase a 30 year level term policy to lock your rates in for the next 30 years.

Buy Your Term Life Insurance in Cincinnati with the Experts!

Many insurance agents in Cincinnati promote cash value life insurance policies versus term insurance policies and we believe that is a mistake.  In most instances term life insurance is best for your life insurance needs.

Contact Pathway Insurance for Your Term Life Insurance Needs

Our office number is 513-662-7000 or you can send an e-mail to Jack@pathwayinsurance.net

Do You Need Life Insurance For Your Family?

If so many agents will try to talk you into purchasing a policy that builds a savings element.  Is that the best type of life policy to buy?  Before doing so please carefully review this important information because permanent life insurance may not be in your best interest to purchase.

We would be glad to discuss whether or not this type of life insurance is appropriate for your circumstances. Call 513-662-7000 to speak with one of our life insurance experts. 

What is Permanent Life Insurance?

This is the type of life insurance policy that builds cash value. That cash value in later years can be borrowed through policy loans or the policy can be canceled and the accumulated cash value would be available to the owner of the insurance policy. 

Permanent life insurance is the most predominantly sold type of life insurance in the United States.  Permanent life insurance goes by a number of different names.  Permanent life insurance can be called:  Whole Life, Variable Life, Universal Life, Adjustable Life, or Variable Universal Life Insurance.

Primary Advantage of Permanent Life Insurance

The premium payments on a permanent life insurance policy such as whole life insurance would be guaranteed to remain the same as long as you own the life insurance policy. 

That is not true for permanent policies known as Universal life, or adjustable life insurance policies. We will discuss these particular policies in a future article. 

Primary Disadvantage of Permanent Life Insurance

It is very expensive compared to term insurance and the rate of return is very poor as an investment.  Let’s assume that a 45 year old man in excellent health was in need of $500,000 of life insurance coverage.  To purchase this amount of whole life insurance with one company would cost $613.83 per month!

In addition the rate of return is very poor for cash value policies.

Example:

Investing $613.83 each month over a period of 20 years would amount to $147,320. What would the guaranteed cash value be at the end of 20 years with this particular company?   Only $148,310!

In contrast if you were only able to achieve a 1% return on your money in a savings account, at the end of 20 years your investment would be worth: $163,813.90 compared to $148,310 from a whole life insurance policy.

There are some forms of permanent life insurance policies that may pay a larger return because it’s linked to the stock market, but the rate of return will be far less than what you could achieve on your own by simply investing in mutual funds or in your 401(k).

You Are Making a Major Mistake If You Buy Life Insurance As a Savings Vehicle! 

Permanent life insurance policies are useful in several scenarios such as estate tax planning, business life insurance in Cincinnati, or final expense needs.  But that’s pretty much it.  If you are purchasing permanent life insurance as a savings vehicle plus insurance you are making a financial mistake.

If You Need Life Insurance in Cincinnati Contact Pathway Insurance. 

We offer professional advice on life insurance.  Do you need life insurance for your family, or do you need specialized expertise on complex business life insurance in Cincinnati? With more than 22 years of serving thousands of clients we are the life-insurance experts of Cincinnati.

Call 513-662-7000 or e-mail Jack@pathwayinsurance.net

What is Group Life Insurance in Cincinnati? 

This type of life insurance is provided by a life insurance company but it is a fringe benefit from your employer. Some employers will allow you to purchase more than the base limit and they may deduct the cost of that insurance from your paycheck. If not any group life insurance coverage over the amount of $50,000 would be taxable to you as the employee.

Advantages of Group Life Insurance- Often It is part of your fringe benefits package provided by your employer. Typically the cost is covered by your employer unless the amount of insurance is over a specified amount.

Primary Disadvantage of Group Life Insurance- The disadvantage with group life insurance is that the coverage will last only as long as your employment with the company or as long as the company decides to provide this benefit to their employees. 

Because of the economy some companies are cutting back on fringe benefits to their employees. If you quit, get laid off or you are fired you lose this coverage. 

If you have medical problems and you lose your group insurance you may not be able to convert it or get any life-insurance from another company. 

Consider group life insurance as extra coverage, icing on the cake if you will.  If you need life insurance to provide for your family it is a major mistake to rely upon your employer for your life insurance needs.

If You Need Life Insurance in Cincinnati, Contact the Experts.

We offer expert advice on life insurance.  Do you need life insurance for your family, or do you need specialized expertise on complex business life insurance policies? With more than 22 years of serving thousands of clients we are the life insurance experts of Cincinnati.
Call 513-662-7000 or e-mail Jack@pathwayinsurance.net

Are you interested in quotes on life insurance in Cincinnati?  Contact a local Cincinnati life insurance expert.  Before you purchase cheap life insurance in Cincinnati call us to compare plans. Our telephone number is 513-662-7000 and we offer some of the best rates on term life insurance in Ohio, Kentucky, and Indiana from quality and highly financially rated life insurance companies. 

If you do not live in Ohio, Kentucky, or Indiana and you want to obtain quotes on term life insurance click here to receive an online term insurance quote from agents in your area.

You Could Be Paying Three Times More Money for Your Life Insurance 

As is true with any type of insurance policy, the rates can be considerably different between competing life insurance companies in Cincinnati. For example let’s review different pricing from different insurance companies:

A 45-year-old man non-smoker requests a life insurance quote in the amount of $500,000 for a 20 year level term policy.

• Company A – The best price on term life insurance came in at $53.73 per month.
• Company B – The worst price for the same term life insurance quote in Ohio was $146 per month.

So as you can clearly see in the above insurance quote if you so happened to have your life insurance with Company B. you would be paying almost 3 times more money for the same coverage!

If you own term life insurance you should take time to compare your life insurance rates to see if you can achieve a better rate.

Our Agency Can Help You Find the Lowest Term Insurance Rates in all 50 states.

Contact our Cincinnati life insurance experts by calling 513-662-7000, or you can send an e-mail to Jack@pathwayinsurance.net for a free term life insurance analysis.

If you do not live in Ohio, Kentucky, or Indiana click online term life insurance rate quote in 47 states.

Are You Looking for Burial Insurance in Ohio?

Contact a Cincinnati life insurance expert.  Our office number is 513-662-7000 and we directly offer burial insurance in Ohio, Kentucky, Indiana. 

If you do not live in Ohio, Kentucky, or Indiana and you want to get quotes on burial life insurance click here to receive an online burial insurance quote from agents in your area.

What is Burial Insurance?

Burial insurance is simply life insurance all wrapped in a pretty little bow.  Funeral homes selling burial insurance are simply selling a life insurance policy underwritten by an authorized life insurance company.

Do I Need Burial Insurance in Cincinnati?

It depends on your financial circumstances.  If you wish to provide funds to your family to cover final expenses a burial insurance policy may be appropriate.  If you have significant financial assets that would be readily available for your heirs you probably don’t need burial life Insurance.

Burial Insurance in Ohio Can Be Expensive If You Buy It From the Wrong Company.

The price on burial insurance in Ohio can vary significantly from company to company.  For a $10,000 life insurance policy in Cincinnati one company might charge $60 per month while another company would only charge you $21 per month for the same coverage.

So if you are looking for cheap burial insurance in Ohio it pays to shop around and we can offer that service to you as we offer burial life insurance from a variety of top rated companies.

Would you like a Quote on Burial Insurance in Ohio?

Contact our independent insurance agency located in Cincinnati by calling 513-662-7000 or if you prefer to contact a Cincinnati life insurance expert by e-mail please correspond directly with Jack@pathwayinsurance.net

Are You Looking for Term Life Insurance in Cincinnati?

Contact our local Cincinnati insurance agency for great rates on term life insurance.   Our office number is 513-662-7000 and we offer Term life insurance directly in Ohio, Kentucky, and Indiana. 

If you do not live in Ohio, Kentucky, or Indiana and you want great quotes on life insurance click here to receive an online life insurance quote from agents in your area.

What Is Term Life Insurance?

Term life insurance is simply pure life insurance.  It does not build cash value and therefore the insurance premiums are significantly lower in cost than a universal life policy, or whole life insurance.

Term life insurance in Ohio works exactly the same way that term life insurance in California works. Term life insurance is only meant for a certain period of time, or a “term.”

If you purchase a 10 year level term policy the cost of your term life insurance will be locked in for 10 years.  After 10 years your premiums will increase substantially.

Term Life Insurance Is Best for These Situations:

• • When you need the maximum amount of life insurance coverage to protect your family.
• • When you only need life insurance coverage for a limited period of time.

If you need life insurance because of estate taxes, or other business purposes, term life insurance will not be appropriate for your circumstances. 

If you need business life insurance in Cincinnati contact Jack Thomas at 513-662-7000 or you can send him an e-mail to jack@pathwayinsurance.net

Who Offers the Best Term Life Insurance Rates ?

There are many companies that advertise on television and radio telling you that they can get you cheap life insurance in Cincinnati, but what they don’t tell you is that you have to literally walk on water to qualify for those insurance rates. (In other words the life insurance rates that they quote you might not qualify for.)

Contact Pathway Insurance for Some of the Best Term Insurance Rates .

For great term insurance rates in all 50 states call 513-662-7000.