ZINSURANCE |
A blog to help you prepare for life's unexpected
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ZINSURANCE |
A blog to help you prepare for life's unexpected
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![]() With September being Life Insurance and Healthy Aging Month, it seemed the perfect opportunity to bring awareness to how your health and habits can positively impact your life insurance premiums. While wellness programs in companies have proven their value in reducing health insurance premiums, does the same hold true for gaining a better life insurance premium? The answer is, “Yes!” An article in Corporate Wellness magazine affirms that life insurance is very much a corollary to health insurance because both instruments offer financial security against a potentially devastating chronic medical condition or incurable illness. However, wouldn’t it be even better for the life insurance to be an instrument for benefiting your heirs instead of covering the costs of poor health after you are gone? According to a study conducted by LIMRA, wellness is a chance for life insurers to improve their performance by doing something good for its customers. Companies that have embraced this concept include elements such as healthy activity tracking, preventative health, medical records, and genetic tests to monitor and reward policy holders. When determining to choose a life insurance policy, it may be in your best interests to find out which ones are onboard for rewarding its policy holders for taking care of themselves. A Conversion Advantage ![]() When a client who was 38 years old and in great health purchased a term insurance policy, he wanted to include a healthy engagement rider called vitality which helped him save money on his premiums by making beneficial health decisions. He was healthy at the time of purchase and considered a preferred underwriting status, helping him receive the highest possible savings. When he purchased his $5 million policy, he intended that someday he would want to have permanent life insurance, but determined he only needed the term policy at the time. With this in mind, the term policy selected included the ability to convert to a permanent policy in the future. Fast-forward three years and he wanted to purchase $3 Million of permanent life insurance. Over that time period, he had been diagnosed with a health condition that would no longer qualify him for preferred underwriting status. With this new health development, it made purchasing a new permanent policy much more expensive. The good news was that the term policy he purchased was still in its convertibility period and had the preferred underwriting status. Through what is known as a partial conversion, we converted $3 million of the $5 million term policy that still had Preferred underwriting, leveraging it into the desired permanent policy. If he had needed to buy new insurance outright, it would have been significantly more expensive due to his new health condition. Additionally, the recommended policy had a healthy living rider, which rewards healthy decisions and preventative care through perks and insurance savings. He finds this rider motivational for maintaining the highest possible level of insurance savings. To learn more about his policy’s wellness program, Vitality, CLICK HERE. 5 Key Questions – Your Vitality Matters
For Your Future, Lori Capozza Zeind www.lczconsulting.com P.S. Check out LCZ Consulting's ever-growing Insights Library. Confused by insurance terms. Check out our Glossary!
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About the BlogHi, I’m Lori Capozza Zeind, Archives
April 2023
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