Generations X and Y Taking Life Insurance All The Way to the Bank

Living Benefit Life Insurance is changing the retirement landscape by providing life insurance benefits to the living. Young and older couples alike can reap multiple benefits.

A recent study from LIMRA, the world’s leading insurance and financial services trade association, reported that six of 10 Americans from Generations X and Y would suffer a financial catastrophe from missing just six months of work due to an accident or illness. Most of these same people lack any life insurance protection or solid retirement plan.

While taxes always operate in the here and now, death and retirement occupy a distant place in the minds of most twenty and thirty-year olds.  Contemplating death and the distant future isn’t something that motivates them. But today, times are changing, and for many, planning way ahead may be essential to a comfortable life growing older.

Forbes, a leading business publication, states:  “The reality is that changes in the retirement landscape mean… young people will need to save more than their parents and grandparents did. That’s because the other two legs of the retirement planning stool, Social Security and pensions, aren’t as reliable as they used to be.” And the uncertainty of Medicaid, reported by Forbes on the same page, compounds this problem.

Ernest Almanza, a veteran of the insurance and financial industry, has studied the planning landscape for 28 years and has the following advice: “Carefully consider LIVING BENEFIT LIFE INSURANCE – Life Insurance You Do Not Have To Die In Order To Receive The Benefits. For healthy individuals in their 20s and 30s, even 40s, living benefit plans are a homerun on many levels: cheaper premiums, tax-free benefits while living through a covered critical illness and long-term chronic care, tax-deferred growth and flexible tax-free funds for retirement that cannot be outlived. Very few people realize this insurance product is even out there.”

In fact, forms of living benefit life insurance have been around now for over three decades, and today it is offered by qualified advisors and regulated in all 50 states.  Policy costs, premiums, payouts, and extent of coverage vary widely between policies, but some or all the benefits described by Mr. Almanza exist in many of the new life products entering the market.

“Some of the newer policies include critical illness benefits for such things as heart attacks, strokes, cancer and chronic illness benefits to help pay for long-term care when you have difficulty performing activities of daily living. Typical death benefits do not pay for that care, so this is something to focus on. The other is how young people can use the same plan to accumulate tax-free money for retirement.  Properly structured, policyholders can employ an indexing strategy that means they won’t lose a penny during market downtowns, but will accumulate tax-free wealth that can be distributed and put in the bank during their entire lifetimes.”

In the past, financial advisors would recommend term insurance for younger couples, the idea being that the cost savings over permanent life insurance policies with a living benefit could be better used to fund other financial planning objectives.  “Term insurance is ideal for cost efficiency for a short- to mid-term coverage period, and is especially suited for healthy individuals,” says Richard Arzaga, a California-based financial planner.

Freedom Equity Advisors also recommends term life when it makes sense, “imagine this: A young person buys a million dollar living benefits policy in his early 30s and at age 60, suffers a catastrophic health event, like a heart attack. Upon death, $1 million can be left tax-free to family members. Alternatively, should the individual survive, the living benefits can be accessed tax-free to help pay the medical expenses and loss of income, thus avoiding the major reason why Americans suffer the financial devastation of bankruptcy.  This comprehensive approach leverages smaller dollars to provide a larger pool of money to satisfy the need to cover multiple potential problems.”

No matter how it’s sliced, Living Benefit Life Insurance is now an important planning option available for young people. And since funds can be accessed while living, foresight may allow laughter all the way to the bank.


Freedom Equity Advisors is located in Dallas, TX and Cincinnati, OH. Founded by Agency Principal Ernest Almanza, they provide comprehensive, full service independent insurance & financial services. Mr. Almanza has extensive industry experience and knowledge with over 28 years in the business. Freedom Equity specializes in business planning & life insurance for small to medium-sized business owners and their employees, and consults with individuals, families and seniors about all aspects of their health, life, retirement benefits and wealth protection strategies.

Contact Info:
Name: Ernest Almanza
Email: Send Email
Organization: Freedom Equity Advisors
Phone: (972) 635-4500

Source URL:

Release ID: 68733