Disability Insurance Broker Explains Additional Drop-Ins or Prepayment of Premiums
As an experienced Disability Insurance Broker, I often get questions from physicians and dentists on universal policies or adjustable or equity index policies. These policies allow additional prepayment of premiums. There won’t be the same commission taking out of that money, there will not be the same mortality charges, or the mortality charges will be based on the original death benefit, and it can enhance the cash values.
Now later if you need to stop making premium payments, that money is available for future expenses, but if you continue making that payment, it can substantially increase the amount of cash available and the death benefit. This will allow you some tax-free access to those funds using withdrawal to basis and loans against the death benefit in the future.
If you are a physician or dentist and have questions about additional drop-ins or the prepayment of premiums, contact our professional Disability Insurance Brokers for guidance. Let our experience work for you.
This educational blog was brought to you by Disability Insurance Broker Michael J. Bruno, seasoned Chartered Financial Consultant, Chartered Life Underwriter and Registered Health Underwriter. Specializing in financial planning and disability insurance for physicians and dentists for over 30 years.