Published On: Fri, Sep 26th, 2014

The Biggest Myth in Life Insurance

TedBernsteinBy Ted Bernstein

The 4 Most Counter-Productive Words in Life Insurance…“I am all set”.

The conventional wisdom of buying and holding stocks has given way to the advantages of being far more nimble when it comes to the stock market.  The same is true for your life insurance coverage.

One of the biggest mistakes made by most life insurance buyers is failing to review their existing coverage on a regular basis.  The typical response heard by most insurance professionals is “I’m all set”.  Nothing could be further from the truth.

Do you still use a telephone that is plugged into the wall? Do you listen to music on a turn-table or an iPod?

Although it may seem counter-intuitive because we are getting older each year, every aspect of life insurance improves greatly from technology and innovation.  The results are lower cost and better policies.

Life insurance premiums are a function of mortality rates and better mortality rates translate into lower premiums.  More people are living longer.  More people are living to life expectancy.  Improvements in cancer detection, heart disease, diabetes and drug therapies are all factors proving to reduce premiums.  Think of cardiac stents, organ transplants, cholesterol lowering drugs and hip replacements.  Each of these is having a major impact on improving mortality.

If you have not recently reviewed your existing life insurance, you may be paying premiums that reflect none of the benefits from these improvements.  For many people, their life insurance is the first or second largest asset.  Yet, when presented with the opportunity to compare their existing policies to what is available in the market, most people reject the opportunity to review their coverage.

The National Association of Insurance Commissioners (NAIC) says on its website, “A regular review of your life insurance coverage is important.”

A few simple questions can help you determine if you should review your existing portfolio of life insurance policies:

    • Are you healthy?  If you are in good health, you can likely improve your coverage.
    • Are you aware of the Installment Payout Option?  Instead of a lump-sum payout to their beneficiaries, life insurance buyers can now choose to have the policy proceeds paid in a guaranteed income stream that protects the proceeds from risk and reduces the cost.
    • Does your existing life insurance policy provide long-term care or chronic care benefits?  Today, several life insurance companies offer these hybrid policies.
    • Are you aware that you can purchase life insurance without commissions or reduced commissions?  Referred to as “no-load” life insurance, these policies used to be available only for very large policyholders.  Today, anyone can purchase life insurance without commission through an experienced life insurance professional.

If you are correctly insured, you are aware of each policy mentioned above.  From my experience, most people are not aware of even one.

Visit us at for help reviewing existing coverage or call 561-988-8984 to discuss all your life insurance needs.



Ted Bernstein is a third-generation licensed life insurance specialist and nationally recognized industry innovation expert in alternative distribution strategies and life insurance product development with decades of speaking out and advocating for changes on behalf of consumers. A member of the Association for Advanced Life Underwriting, he was the first to introduce life insurance without commissions or “no-load” life insurance in the mid-1980s and launch the first fee-based Life Insurance Policy Audit and Review service for trust companies and life insurance fiduciaries. His newly introduced innovation, the Installment Life Option, is game-changing. To learn more, visit or call 561-988-8984.


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