Tony Steuer - The Questions and Answers on Life Insurance Workbook: A Step-By-Step Guide to Simple Answers for Your Complex Questions

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher and author are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Published by Life Insurance Sage Press
Alameda, CA

Copyright 2011 Tony Steuer

All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the copyright holder.

This workbook is a companion to Questions and Answers on Life Insurance, published by Life Insurance Sage Press in 2010. To order more copies of Questions and Answers on Life Insurance, contact Emerald Book Company at PO Box 91869, Austin, TX 78709, 512.891.6100.

Design and composition by Greenleaf Book Group LLC
Cover design by Greenleaf Book Group LLC

Ebook ISBN: 978-0-9845081-3-6

Ebook Edition

Does the thought of life insurance give you a headache? Have you put off purchasing life insurance because you dont know how to get started? Are you unable to fully understand the life insurance policies youve acquired or that someone else obtained for you? If you answered yes to any or all of these questions, this workbook will help you solve your life insurance woes and may save you a significant amount of money.

Ill provide you with a step-by-step process for determining your life insurance needs, finding a good provider, getting a policy, and evaluating your policy quickly and effectively each year. In combination with Questions and Answers on Life Insurance, this workbook will help you take charge of your life insurance, understand it, and spot any potential issues before it is too late.

Ive designed this book to help those just starting the process of looking for life insurance, those who already have a policy, and those who are helping others make life insurance decisions. If youre new to life insurance and dont yet have a policy, part I will guide you through the process of determining how much and what kind of life insurance you need, and part II will help you find the best provider. Note that Im assuming you definitely need life insurance. If you havent determined that yet, you can go to my website and use the How Much Life Insurance Do I Need? questionnaire to make sure you actually need it. Part III will teach you how to prepare yourself for the review process a year from now.

If youre someone who already owns a policy and knows something about life insurance, part I serves as an excellent and necessary opportunity to perform a gap analysis: How well do both the policy you purchased some years ago and your life insurance company meet your current needs? Your needs may have changed or you may not have done a thorough assessment of your needs when you first purchased your policy, instead relying on your life insurance agents or financial advisers advice. Part III will help you review and evaluate your current policy and your options. As with any other financial instrument, it is critical that you review your life insurance coverage annually, but few people understand how to do this quickly and effectively. If you no longer need coverage, Ill help you figure out options for terminating your policy.

And if you are responsible for helping others assess their life insurance needs as part of an overall estate-planning or financial-planning approach, this workbook can help you get to better answers faster.

The U.S. life insurance industry is huge, and it is not bargain oriented. You might compare it to a casino: Odds are involved, and insurance companies didnt get those big, shiny buildings by paying out more than they take in. Unlike gambling, life insurance is a critical part of most financial plans, which is why so many people need this type of guide. You need to get the biggest benefit from your life insurance dollars.

That is the goal of this book: to help you best utilize your life insurance dollars to get the best deal you can. Why pay more than you need to?

A life insurance policy is, at the end of the day, a tool for financial leveragenothing more, nothing less. But this book is not about investing; its about life insurance, and using life insurance as life insurance. If you want to invest your money to grow your nest egg or retirement funds, which by all means you should, look elsewhere. No matter what you read or hear, life insurance can serve as a supplemental investment only when you have a life insurance need. It is not an investing tool in and of itself because you will always have insurance charges on top of any other expenses.

Well, you may ask, what about the fact that life insurance cash values accumulate on a tax-deferred basis? First, this is not guaranteed. Congress consistently talks about revoking this feature of life insurance, and if it does, watch out. Second, other tax-deferred vehicles are available, such as IRAs, 401(k)s, and others, that Congress is not targeting for taxation and that do not have insurance charges. Unfortunately, many people are so concerned with the earnings that they ignore the impact of managing their expenses. Its the basis of any sound financial budgeting: Any time you lower expenses, your budget will improve.

So lets figure out the world of life insurance and how it fits into your overall planning.