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6 min read

What to Know About the Different Types of Long-Term Care

By Cameron Huddleston on 1/31/23 10:00 AM

Realizing that a parent or loved one needs long-term care can be a tough pill to swallow. It can be hard to watch as a once healthy and active person can no longer manage simple tasks on his or her own. It can be even tougher to have the long-term care conversation with your loved one. After all, who wants to be told that she is no longer capable of caring for herself?

Topics: Long-Term Care Long-Term Care Insurance Insurance
3 min read

Retained Death Benefits: What Are They and Why Are They So Important?

By Coventry on 1/27/23 10:00 AM

Life insurance can be a financial lifeline for your family should something happen to you, but it also comes with a financial responsibility that can be challenging to keep up with. There is a way to reduce the cost of paying for a life insurance policy while still ensuring security for your loved ones. Retained death benefits, a form of life settlement payout, gives the policy owner the option to retain a portion of the death benefit for their beneficiary while removing the burden of policy premiums. You can even elect to receive a combination of cash and coverage with no future premium obligations.

What is a retained death benefit?

There are a few primary options for cashing in a life insurance policy. The most common option is to sell an entire policy for cash, but what about those who need to maintain coverage?

A retained death benefit is one option wherein the policyholder keeps a portion of the current death benefit and no longer has to pay any premium obligations. There’s also a third related option: the policyowner gets a blend of cash and retained benefit. In this third option, the policyowner (i.e., the seller) receives less cash than in an all-cash transaction, still retains some insurance coverage, and also eliminates any future premium obligations.

You can look at retained death benefits as the ability for the policyowner to share a portion of the cost of their life insurance policy with an investor (i.e., the buyer). Once the offer is accepted, the buyer takes over the responsibility of all payments. In the event that the original policyowner dies, their beneficiary receives their retained percentage of the death benefit, while the investor receives the balance.

In short, the main advantage of a retained death benefit is that it removes the premium burden while still allowing the policyowner to retain coverage.

How does a retained death benefit work?

When you contact Coventry Direct, we’ll work with you to understand your needs and come up with a plan that works for you. We’ll look at the details of your policy, the insured’s health, and specific goals regarding the transaction to determine the life insurance policy’s worth.

If you qualify to sell your policy and choose a Retained Death Benefit, Coventry will seek to understand the amount of coverage you require and determine the best compensation structure to meet your needs. Getting started is as easy as clicking here.

It’s important to note that every policy is unique and so is every policyowner’s situation. It’s important to speak with a financial advisor to come up with a solution that will benefit you and your family the most.

Retained death benefit example

Take Patricia for example. While her policy has a face value of $1 million, her monthly payments have put a strain on her finances. She has two options in electing a retained death benefit:

  1. Keep a portion of the death benefit and no longer pay premium obligations.
  2. Receive less cash from the death benefit, retain some coverage, and no longer have to pay premium obligations.

Whichever option Patricia chooses, there are benefits to her, her beneficiaries, and the buyer. Remember Patricia, like any policyholder, also has a third option wherein she can sell the life insurance policy for cash.

Does a retained death benefit make the most sense for your situation?

If you can no longer afford paying for your life insurance, or if it no longer makes sense for you to have your policy, a retained death benefit is an option worth looking into. Regardless of the size of your policy, ensuring the security of your loved ones’ financial well-being is important. Interested in learning about how to sell your life insurance policy? See if you qualify.

Topics: Life Insurance & Annuities Insurance
6 min read

Understanding Uninsured and Underinsured Auto Insurance

By EveryIncome on 7/29/22 10:00 AM

If you’re in an accident and you aren’t at fault, generally the damages are the other driver’s responsibility. But what happens when that person doesn’t have insurance? Even though it’s the law, many people still drive without insurance or without enough insurance to cover the damages. As much as 13% of drivers are uninsured.

Topics: Insurance
6 min read

How to Choose an Auto Insurance Deductible

By EveryIncome on 7/1/22 10:00 AM

You need car insurance – it’s the law, but as long as you have the minimum coverage required in your state, the rest of the decisions are up to you, including the amount of your deductible.

Knowing how to choose your deductible is important. It’s the amount of money you must pay if you file a claim. It’s not an optional payment, so knowing how to choose yours wisely is important.

Topics: Insurance
2 min read

Why You Should Consider Investing in Life Insurance

By NAIFA on 5/2/22 1:30 PM

Do you ever worry about what will happen if something happens to you? Not the fear that grips you when you are alone in your home at night, but the stress and anxiety associated with trying to provide for your family, pay off debt, or maintain your lifestyle. This is where investing in life insurance can have various benefits.

Topics: Life Insurance & Annuities Financial Planning Tax Savings Financial Literacy Insurance
2 min read

Life Insurance Is Key to Financial Security

By NAIFA on 4/26/22 12:23 PM

New research by LIMRA and Life Happens shows two significant trends: life insurance is key to financial security and gender gaps extend to life insurance coverage.

Financial Security with Life Insurance

Financial insecurity affects all age groups, but one thing is clear: having life insurance increases Americans' feeling of financial security. 68% of life insurance owners feel financially secure compared with 47% of non-owners, and those who feel most secure have coverage both through their employer and a separate individual policy. The study also showed that the COVID-19 pandemic had increased awareness of the need for life insurance, with 31% of those surveyed saying they are more likely to buy life insurance in 2022.  

Topics: Life Insurance & Annuities Research Trends Research/Trends Insurance
6 min read

How Your Risk of Financial Exploitation Increases as You Age

By Cameron Huddleston, Carefull Family Finance Expert on 3/29/22 10:00 AM

You know that you can expect to be at an increased risk of health issues as you age. However, what you might not realize is that aging puts you at a greater risk of another issue: financial exploitation. 

In fact, the rate at which adults over the age of 60 can expect to experience financial exploitation—1 in 20—is higher than the incidence of many age-related diseases, according to research published in The Journals of Gerontology. And that’s likely an underestimate of the problem because, according to the report, “many older adults are unaware or unwilling to report exploitation.” 

Topics: Long-Term Care Limited Care Limited & Extended Care Planning Center Potential Partners for Advisors Insurance