This is the second installment in our SmartLock™ use case series. To see last week's post on SmartLock™ bonus plans, click here.

When it comes to planning for your loved ones in case of sickness or death, the options can be overwhelming. Term insurance, infinite banking, IUL ... the marketing terms and product choices are endless. When considering how to provide the best financial security for your loved ones, SmartLock™ emerges as a superior choice. This type of policy not only guarantees a death benefit for your beneficiaries but also offers several other advantages that make it a standout option. Here’s why using a SmartLock™ as an insurance hedge will give you the best chance of ensuring your beneficiaries are well taken care of.

Immediate Coverage and Guaranteed Death Benefit

One of the key benefits of a SmartLock™ is the immediate coverage it provides. By paying a lump sum upfront, your policy is fully funded from day one, ensuring that your beneficiaries are protected right away. This is a significant advantage over other types of life insurance policies that require ongoing premium payments and can lapse if payments are missed.

Stability and Predictability

A SmartLock™ offers stability and predictability that other investment and insurance options often lack. The death benefit is guaranteed, meaning that no matter what happens in the financial markets or with your health, your beneficiaries will receive the agreed-upon amount. This level of certainty is crucial for planning your family's future financial security.

No Risk of Policy Lapse

Traditional life insurance policies can lapse if you miss premium payments, potentially leaving your beneficiaries without coverage. With a SmartLock™, the risk of policy lapse is eliminated. Since the policy is fully funded with a one-time payment, there are no ongoing premiums to worry about, ensuring that your beneficiaries will always be covered.

Death Benefit Tax Advantages

The insurance benefit component of a SmartLock™ comes with notable tax benefits. The benefit paid to your beneficiaries is generally income tax-free, maximizing the financial support they receive. This can help preserve more of your wealth for your loved ones.

Simplified Estate Planning

For those engaged in estate planning, a SmartLock™ allows you to pass on wealth efficiently and can help avoid the complications and potential costs associated with other forms of inheritance. The guaranteed death benefit provides a clear, straightforward way to ensure your beneficiaries receive the financial support you intend.

SmartLock™ offers a reliable, secure way to ensure your beneficiaries are well taken care of. Using a SmartLock™ as an insurance hedge involves leveraging this asset in a way that eliminates your risk of not having insurance when you need it. Insurance only matters if you have it when you need it, so securing your future in a way that you can't lose is imperative.