Changes in life’s circumstances can sometimes work to your advantage just like they did for me this year. In late 2006 I applied for Life Insurance, a $750,000 policy to protect my wife and kids should I pass. I confidently presumed I would get the best possible rates. I figured I was healthy, almost untouchable still at 43 years old. It would be easy. Application, paramedical exam and bam we would have a great plan locked up. Well, to my surprise, my cholesterol and Ht/wt (which had slipped about 15 lbs the wrong way during my wife’s pregnancy with Tanner) tested high. My Doctor had told me my “ratio was great and my cholesterol was nothing to worry about “ at my last physical. Then, all of the sudden I get knock from Super-preferred rates to Standard rates. My policy was going to cost me $400/year more than I had budgeted.

Well I sucked it up and got the much needed coverage. Then I set a path to correct my wrongs. I started running again, and got on nutritional supplements to help encourage greater health inside. I also gave up a very expensive Ice Cream habit cold-turkey. Well, 15 pounds later, and 24 points lower on my cholesterol, I re-applied and got my Super-preferred rating and increased my coverage to $1 Million, still saving $400 per year. The moral to the story is, with Term Life insurance rates coming down 50% in the last 12 years (see Article), and changes to health, do not feel locked into what you have. Health issues can change, not just for the bad, but for the good. If you are one of those fortunate to have made changes like this since your original coverage, then take some time to call and discuss your situation. A current evaluation is always prudent.

Another story involves a client I was working with recently who called explaining they had $82,000 ($63,000 in principal) in a Variable Life Insurance product they had purchased in the early 80’s with a face amount of $350,000. He was 67 years old and they were not contributing any more into it. At present, pre-recent market declines, projections, the cost of the insurance would eat up the $82,000 around his 76th Birthday. They asked if there was anything they could do with the principal (and gain after taxes), get as much benefit as possible for the wife (age 55), pay little if  anything more in premium if they did not have to. All this, a daunting task to say the least…preserve the investment, increase age to death benefit, pay minimal tax if possible on the $19k gain, and little to no premiums going forward.

We found a Life plan that would accomplish the clients wishes plus some!

For no additional premium, his conversion would avoid any taxes on his gain, give his wife a benefit of $169,000-And on top of that, let him access up to 3380 per month of his Life benefit for Homecare, assisted living or nursing home at no additional cost.

There are fabulous new products in the market that can wrap extra benefits like Long Term Care, that can dramatically affect the lives of your family and loved ones. I urge you to inquire about how some of these new financial vehicle can be used to protect you and your family.