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.

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

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