Viking Magazine - September 2015 - 11

MYTH 3: LIFE INSURANCE PROVIDES
BENEFITS ONLY AFTER THE DEATH OF A
LOVED ONE.
FACT: When you accumulate cash value
in a permanent policy over a number of
years, you are creating a nest egg that
grows tax-deferred, says Len Carlson,
director of agencies for Sons of Norway.
Policyholders can borrow against that asset
at a low interest rate for a range of reasons.
The money can be used to help pay for
college expenses, supplement your income
if you need to take time off to care for
elderly parents or start a new business.
There are also riders that can be added
to policies to give owners living benefits in
life insurance contracts. An example is a
critical illness or chronic illness accelerated
benefit rider. These riders allow for the
payment of a portion of the death benefit if
you were to have a critical illness or are in
need of long-term care. Usually this money
is available to cover daily living expenses
with little or no restrictions on its use.
Other riders let owners who are terminally
ill receive some of the death benefit while
they are still alive to pay for medical bills
or do something special with their family,
says Schwartz.
MYTH 4: I CAN'T QUALIFY FOR
LIFE INSURANCE IF I'VE HAD MEDICAL
PROBLEMS.
FACT: There has been tremendous
movement in how insurance companies
underwrite and look at certain medical
conditions. The wait periods have been
reduced, says Schwartz. For instance,
someone who has had cancer may be
considered a standard risk, depending on
the treatment and results. " You can be five
years out and a standard risk today from
a fairly aggressive breast cancer event, " he
says. Or someone with prostate
cancer may be able
to get coverage
right after having
surgery and with
PSA levels
at zero.
Calculate Your Needs
How much insurance do you
need? Life Happens offers
several calculators to
help you decide.
lifehappens.org
MYTH 5: PEOPLE OVER THE AGE OF 65 DON'T NEED LIFE INSURANCE.
FACT: " One of the misconceptions people have is that they won't need
life insurance after a certain, limited time frame, " says Schwartz. " Peoples'
needs shift and change. The need for at least some amount of insurance
morphs with your life stages. " Although your young kids are grown and
debts reduced, sometimes seniors still support their adult kids or parents and
need protection.
In reality, most people won't have sufficient liquidity in their retirement
years. When one spouse dies, pensions can turn off and Social Security
amounts change. A death benefit can be a welcomed source of financial
security for the surviving spouse. " Having some life insurance that takes
care of final expenses and loss of income streams that may happen when one
party of a couple passes away can be the difference between maintaining life
style and not maintaining lifestyle, " says Schwartz.
Drawing money out of the life insurance contract also can supplement
retirement income, adds Carlson. Some people who retire find themselves
going back to work to make ends meet. With enough cash value in a
permanent policy, you can tap into that resource to help pay off house, car
or education debt that may linger into your later years and limit your
freedom in retirement.
only own
indidividual
insurance
LIFE
INSURANCE
OWNERSHIP
43%
don't own
life insurance
57%
own life
insurance
SOURCE: LL GLOBAL INC. AND LIFE HAPPENS 2015 INSURANCE BAROMETER STUDY
MYTH 6: LIFE INSURANCE IS NOT A CHARITABLE GIFTING TOOL.
FACT: A life insurance policy can be a very simple way to leave a legacy to
a favorite charity. It's a way to magnify your gift because the death benefit
will be larger than the cost of the premiums you pay. A policy can be in your
name or in the name of the beneficiary.
" It's a discounted way to provide that legacy, " says Schwartz. " It doesn't
require a trust or a family foundation or complex estate planning. It's simply
a life insurance contract that a charity can own on your life or you can own
and at your death you can designate the benefits to the charity. "
What better way to show support for a charity's mission than by making it
the beneficiary of a life insurance policy.
sonsofnorway.com VIKING SEPTEMBER 2015 11
only own group
insurance
own individual and
group insurance
http://www.lifehappens.org http://www.sonsofnorway.com
Viking Magazine - September 2015

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