Life Insurance & Annuities
LIFE INSURANCE & ANNUITIES – Life insurance & Annuities are two of the most misunderstood financial tools of all. Don’t assume you know everything we can do for you.
Did you know that there is ONE, and only one, financial tool that can help you do ALL of the following things (without hitting the lottery)?
- Replace the income of a deceased spouse, parent, or guardian?
- Provide an instant estate for your family or heirs if you die?
- Leave an estate or legacy to your favorite charity, school, or other cause?
- Provide money to pay for long term care at your home or a facility?
- Guarantee the value of a “key man” to a business?
- Can provide money to execute a “Buy/Sell Agreement” in a business?
- Pay your estate taxes or other debts when you die?
- Can be sold for cash?
- Can help the family of a college-bound student qualify for more financial aid?
- Or builds a cash value that can be accessed without penalties or income taxes for –
- Paying off your house?
- A financing alternative to expensive banks and finance companies?
- Building a retirement income free of income taxes?
The ONLY financial tool that can do all of those things is a cash-value life insurance policy like whole life or an IUL (Indexed Universal Life policy). No other financial tool offers the flexibility and tax benefits that these accounts offer. The video below illustrates how an IUL can help you create a retirement plan –
Term Life Insurance
Yes, you can buy a simple term policy that provides a death benefit to temporarily protect your family if something happens to the primary breadwinner. Initially, it is the lowest cost life insurance. But the premiums increase at the end of each “term” (most commonly 1-20 years). By the time you hit your 70s, when you are most likely to need the coverage, the premiums are usually too high to keep the policy in force and most people will cancel or allow the policies to lapse. This is why 96-98% of term policies never pay out, and why life insurance companies love them.
So, please, only consider a term policy if you have a short term need (say, your kids are in high school and you want to make sure they have money to go to college), or if somebody else is paying for it (like your employer).
How to KNOW What You Need?
Most people are under-insured. Are you one of them? If you want to know, there are two things you need to do. One, is to site down and think about what you want to accomplish in your life, especially during the “4th Quarter” (ages 60-80). Do you want to retire some day? When? Where do you want to live? How do you want to spend your time? How much money will you need to live the way you want? Are you on pace to have enough GUARANTEED INCOME?
The second thing you need to do is talk to an advisor who can examine where you are today, financially, and give you a plan to help you reach your goals. In addition to life insurance, you may want to put some money in an annuity. An annuity is just a savings account held by a life insurance company that pays a much better rate than a bank cd. The two biggest benefits of an annuity are SAFETY and GUARANTEED LIFETIME INCOME. For more information, see the video below –