Like a coin has two sides, there're two aspects to understand a matter or to know a person: the appearance and the intrinsicality. According to a publication in Scientific American: Mind, the two main qualities when people to understand a different individual are warmth (whether they are friendly and well intentioned) and competence (whether they have the ability to deliver on those intentions). The "warmth" corresponds to the outer appearance, and the "competence" can be ascribed to the inner intrinsicality.
Interestingly, the very first action is always the outer appearance. For example, kids pick candies that appear colorful to them, 76% Americans favors appearance over reliability when making decision to purchase a new car, and sadly but real thing is professional women are still judged by their appearance.
Likewise, when it comes to understand a new matter, similar logic applies.
This article will focus on the "Appearance" of the life insurance product: Living Life by Design.
1. Living Life by Design is ONE product for ALL
One of the most frequent questions many our clients are asking is: Why it is called "Living Life by Design"?
This is a multi-functional indexed universal (IUL) life insurance product that can suit multiple needs of the policy owner. In general, it covers situations when the insured (1) dies too soon, (2) lives too long, and (3) becomes ill. To touch a little bit detail, per insured's need, this IUL product can be designed at different angles to highlight either part of the 3-piece puzzle shown in the below picture. We'll look into more depth in the other article: Know "Living Life by Design": the Innrt Intrinsicality.
2. Living Life by Design DOES pay
People like me, as a policy owner, have a realistic concern that whether this policy will keep its promise (or in other word, if the policy will pay me in situations that trigger the settlement).
Well, this specific product was just released by National Life Group (NLG) a year ago. But it belongs to the NLG's IUL family. All NLG's IUL products have living benefit embedded. And there're a number of living benefit testimonials. They're open to search on YouTube and NLG offical website.
Here's one of them: the story of Robert Curry. He is a military veteran, father, and husband. He purchased life insurance coverage from National Life Group (an Alliance Group carrier) in order to leave a legacy behind for his family in case he passed away unexpectedly. His plan was to live until age 100 – but an unexpected ALS diagnosis changed Robert’s plans in a hurry. Living Benefits allowed him to retire immediately and take care of some bucket list items that had previously been relegated to the back burner.
In 2019, $3.3 billions was paid to the insureds as total benefits equals promise kept, according to NLG's annual report.
3. Living Life by Design DOES beat 529 Prepaid Tuition Plan
I am a father of three boys (age 6, 4, and 4), living in Michigan. Guess what is one of the biggest financial concerns I have? College Tuition!
The in-state tuition at University of Michigan for example in 2020 is projected to be $15,948 (data source: https://admissions.umich.edu/costs-aid/costs). There's a general increasing trend of double the tuition in ten years, according to the below picture (data source: http://www.annarbor.com/news/decades-of-tuition-hikes-make-working-your-way-through-college-impossible-without-debt/).
So, by the time my sons are in college, the tuition cost will most likely be doubled (i.e., $31,896/yr). That'll be $127,584 out of pocket for a four-year college study, for only one of my sons!
Certainly you'll say: why not utilize the 529 prepaid tuition plan?
Yeah, that sounds like a plan. I invest $63,792 ($15948/yr * 4yrs) into the 529 prepaid tuition plan, I will have my money doubled its value, with a net growth of $63,792.
But, if I put an equal $63,792 into Living Life by Design, the yield surrender value will be easily beat the amount I'll get from 529 plan by the time when my sons go to college. And, the earlier I invest my money in Living Life by Design, the higher the surrender value I'll get.
Not to mention, 529 owners will have less priority to get FREE financial aid. Savingforcollege.com has an article discussed about this topic. And, surprisingly found out that in the past school year, there were $2.6 billion went unclaimed. Life insurance owners do not trigger such disadvantage. Check the Financial Aid Eligibility.
So, Living Life by Design = college saving plan + FREE financial aid opportunity + death benefit + living benefits >> 529 prepaid tuition plan.
Moreover, Living Life by Design is an indexed universal life insurance, so my sons will get covered when they unfortunately die at younger ages, live too old to work, and get severe illness. Those are the EXTRA!
To unveil the advantages of owing the Living Life by Design over other investment plans, and also more in depth discussion with 529 comparison, please see my other article: Know "Living Life by Design": the Innrt Intrinsicality.
[last updated: 8/9/2020 05:34 AM]
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