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Third Commitment - Premium Duration

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Third Commitment - Premium Duration

Choosing the number of years of "out-of-pocket" cost also influences your buying decision.

Every policy requires either :

  • A fixed annual premium each year
    OR
  • Money to cover the cost of insurance to life expectancy on a daily, monthly, quarterly or annual basis.

Does the premium come from your pocket or from the policy's cash value?
The number and size of the "out-of-pocket" premiums determines the magnitude of the long-term benefit.

TIP : Too few "out-of-pocket" premiums may result in a "thin transaction".

Next Step: The length of time you want the coverage also impacts your decision on the annual premium.

Fourth Commitment - Insurance Design Goals

 
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