Expert, Ted Bernstein, Weighs In About The Importance of Installment Life Payout Option For Life

BOCA RATON, Fla. - Oct. 15, 2013 - PRLog -- Boca Raton, Florida -The responsibility of managing life insurance proceeds is often thought to be more difficult than many beneficiaries imagine. "After the death of a loved one, your survivors may not want to worry about what to do with the money, especially if it's a large amount," according to LIMRA. "…progressive [Installment] payouts may allow beneficiaries to adjust over time to their new wealth."

The Lump-Sum Illusion:

The owner of a life insurance policy has had only one choice concerning how proceeds are paid to the beneficiaries – a lump-sum.  “For many individuals, families and businesses, the payment of life insurance proceeds in a lump-sum is neither optimal nor practical”, says Ted Bernstein, CEO of Life Insurance Concepts, Inc.  “Instead, the Installment Payout Option is the perfect solution for many life insurance buyers concerned about making sure the proceeds are protected from mismanagement and market risks”.

“That may be a wise move if you think a large windfall may bring additional stress to a spouse, child or other relative already mourning a death in the family”, says LIMRA.

“Ask any life insurance buyer about the affordability of life insurance and without question, they feel premiums are too high”, Bernstein says.  Affordability is at the top of the list of why consumers struggle with the issue of life insurance.  “The Installment Life Option can REDUCE premiums as much as 50% or INCREASE coverage levels as much as 50%.  Because the life insurance company guarantees to pay beneficiaries over time, like an annuity, the installment option delivers dramatic savings”, according to Mr. Bernstein.

Further, it might help curb an urge for beneficiaries to use the proceeds unwisely - This could be at odds with the policyholder's desire to provide a stable form of income for a family member or ongoing business.

Policy Beneficiaries Embrace the Installment Option – Maintaining Your Lifestyle.

If you're on the receiving end, a mandated installment payout may help you manage your finances better, says Catherine Theroux of LIMRA. "Remember that life insurance is often seen as a way to replace some of the lost income provided by someone," she says. "…But it's good to be a little patient and focus on the long-term and how the money can help you over time."

Incorrectly Insured?

For the millions of “incorrectly insured” Americans, “becoming aware of how the installment payout option protects your beneficiaries and improves your balance sheet is a big step in the right direction of being correctly insured”, Bernstein says.  The installment option is available as term insurance and permanent insurance.

About Ted Bernstein

Ted Bernstein has been a consistent innovator in the life insurance industry. He was also the first to introduce “no-load” life insurance in the mid-1980s and First to Die life insurance. One of the few agents ever to address the Society of Actuaries, Bernstein is an expert in alternative distribution strategies, premium financing and life insurance product development. In the late 1980s, he launched the first fee based Life Insurance Policy Audit and Review service for Trust companies and life insurance fiduciaries.  One of Ted’s most notable professional accomplishments was acting as boxer Muhammad Ali’s life insurance agent.