When it comes to insurance policies, one concept that stands out as a powerful financial tool is a fully paid-up policy. A fully paid-up policy means that all your premium obligations have been paid within a certain period of time. This type of policy can offer numerous benefits, providing you and your heirs with financial security and peace of mind. In this blog, we will delve into the advantages of a fully paid-up policy, its guarantees, and the potential pitfalls to watch out for when considering other insurance options. At Prevail, we are committed to helping you navigate the intricacies of insurance and secure your financial freedom.
Understanding a Fully Paid-Up Policy
A fully paid-up policy refers to an insurance plan where the policyholder has paid all the required premiums within a specific timeframe. The premium payment period may vary based on your age and the policy’s terms, typically ranging from ten to fifteen years. Once all premiums have been paid, the policyholder no longer needs to make any additional payments, and the policy is considered fully funded.
Guaranteed No Matter What
One of the significant advantages of a fully paid-up policy is that all policy fees are guaranteed to be paid up, regardless of future changes in circumstances or market conditions. The policy remains secure, providing peace of mind to the policyholder. However, it is essential to distinguish between policies that are genuinely guaranteed paid up and those that might only appear so on the surface.
Be Cautious with Universal Life Policies
Universal life or indexed universal life policies may look like they are paid up in their illustrations, but if you look more closely, this is often based on non-guaranteed assumptions such as the cost of insurance, charges, and current crediting rates. If the policy does not perform as illustrated, there may be reoccurring premiums in the future. As policyholders age, the cost of insurance increases naturally. Couple that with potential policy underperformance and unexpected premium payments could become a concern.
The Advantages of Prevail’s Whole Life Policy Structures
At Prevail, we structure whole life policies that are guaranteed paid-up after a designated number of years. For example, our ten-pay premium option allows policyholders to pay premiums for ten consecutive years, after which the policy is guaranteed to be paid up. This means you won’t face any surprise premiums later in life.
Predictable and Steady Growth
Our whole life policies offer slow yet steady growth, ensuring you know exactly what to expect from your policy. With the upfront payment of all policy fees over a shorter period, the policy becomes fully funded for your lifetime. This structure eliminates the risk of unexpected premiums and allows you to plan for a secure financial future.
Secure Your Financial Freedom with Prevail
At Prevail, we guide you through the complexities of life insurance to find the best solution for your needs. Embrace the benefits of a fully paid-up policy and take control of your financial future today. Contact our team at riseabove@prevailiws.com or call 913-295-9500 to schedule a consultation and discover how our whole life policies can provide predictable growth and lasting security. Take the first step towards a brighter financial future with Prevail today!
The name “Prevail” references independent services offered by Prevail Innovative Wealth Advisors, LLC (Prevail IWA), Prevail Strategies, LLC, and Prevail Alternative Assets, LLC (PAA).
Prevail Innovative Wealth Advisors, LLC, is a federally registered investment advisor. Registration with any securities authority is not an endorsement of the services offered by the investment advisor. Fixed insurance products and services are offered through Prevail Strategies, LLC, a licensed insurance agency. Life insurance payouts and death benefits policies are dependent upon the financial condition of the insurance carrier. Prevail Alternative Assets, LLC, was formed to provide real estate investment opportunities for high-net-worth individuals looking for diversification.
Prevail Innovative Wealth Advisors, LLC, Prevail Strategies, LLC, and Prevail Alternative Assets, LLC, are affiliated because they are under common ownership and control. Prevail Innovative Wealth Advisors, LLC, Prevail Strategies, LLC, and Prevail Alternative Assets, LLC, do not provide tax or legal advice. You should always consult your CPA or tax professional for decisions involving tax implications present and future.
For a copy of Prevail Innovative Wealth Advisors privacy policy, Disclosure Brochure (Form ADV Part 2A), and Client Relationship Summary (Form ADV Part 3), please contact your Investment Advisor Representative or call our main office at (913) 295-9500.
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