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One of the primary reasons is due to cash flow restraints. In this scenario, the best alternative is securing a convertible term policy.
If you can budget $20-50 a month, you could lock in a 10 year term policy now that can be used to convert to an IBC designed Whole Life within the next 10 years.
(Your age, health rating, and amount of death benefit will ultimately determine your monthly premium)
From experience, including my own term policies, I can share the majority of my clients convert their term policies within 5 years to an IBC Whole Life policy.
Life insurance companies will often also provide a credit for the previous 12 months of premium when the term policy is converted.
Plus, if you are married and/or have kids, the death benefit from the term policy gives your family added protection.
If you are single, then the convertible term policy is merely to guarantee your health so that you qualify for the IBC Whole Life policy when ready. It's like buying a stock option in that regard where the stock option gives the person the right to buy shares of a company within a specified timeframe. In this case, the convertible term is the " Whole Life option".
I'm a lifer to the insurance business. My first official job after college was with John Hancock Financial. Since that time I’ve seen a number of people wait to get a policy for various reasons only to lose their health (prostate cancer, stroke, diabetes, complications from a car accident, etc.). I’ve seen a lot of bad luck happen to good people.
For that reason, I try my best to get people, at a minimum, considering a convertible 10 year term policy.
This type of pre-IBC planning is what I refer to as "Future Planning". It also works great if you already have one or more IBC Whole Life policies.
I keep a 10 year term policy despite owning multiple IBC designed Whole Life policies. I keep it available so I know with 100% certainty I can open my next IBC policy even if my health changes for the worse.
Let's face it. This pandemic has proven once again that anything that can happen, will happen!
Back to my own term policy... when I eventually convert my existing term policy to my next Whole Life policy, I'll also look to obtain another 10 year term policy so I can repeat the same process for the next 10 year window of my life.
If you would like to learn more about getting yourself set up for your first or next IBC plan AKA doing some "Future Planning", let me know. You can find me here: www.IBC.com
Thank you,
John Montoya
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