Life & Annuities
In the midst of our current financial times we have been fielding several calls from clients with concerns about their retirement savings. Current clients with fixed/fixed-indexed annuities want to be reassured that their money is safe, while other clients without fixed annuities want to know how to save what money is left.
We are proud to say that of the millions of dollars our clients have in fixed/fixed – indexed annuities – not one client has lost even a penny. Clients who are not familiar with annuities, may ask “how can this be?”
The answer is simple: fixed annuities are not a flashy product but they are safe, secure and contractually guaranteed.
Death benefit fact: Did you know?
Social Security provides a one-time payment of only $255 at the time of death. Will this be enough to provide for your loved ones left behind?
6 Reasons For Life Insurance
- Pay Final Expenses
The cost of a funeral and burial can easily run into the thousands of dollars, and I don’t want my spouse, parents, or children to suffer financially in addition to emotionally at my death.
- Cover Children’s Expenses
Like most parents, I want to be sure my kids are well taken care of. I’d also like to provide a quality college education. For this reason, additional coverage is absolutely essential while my kids are still at home.
- Replace the Spouse’s Income
If my wife or husband had passed away while the kids were young, I would needed to replace her/his income, which is essential to our lifestyle. I also would need to hire help for domestic tasks we shared like cleaning the house, laundry, cooking, helping with schoolwork, and carting kids to doctor’s visits.
- Pay Off Debts
In addition to providing income to cover everyday living expenses, my family would need insurance to cover debts like the mortgage so they wouldn’t have to sell the house to stay solvent.
- Buy a Business Partner’s Shares
The need to have life insurance on a business partner’s life may be important. The reason is so if he/she dies, I will have enough cash to buy his/her interest from their heirs and pay their share of the company’s obligations without having to sell the company itself.
- Pay Off Estate Taxes
Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Use of insurance for this purpose is most common in large estates, and uses permanent (rather than term) insurance to ensure that coverage remains until the end of life.
There are different types of Life Insurance to cover these things:
- Term: Largest available amount now for the least cost. Expires (like renting- an ongoing expense with no ownership)
- Universal: Builds equity but does not have guaranteed fixed costs, however these could increase (like buying a mobile home on a rented lot)
- Whole: More costly premium, but creates a lifelong protection and builds cash value. May be used for retirement needs or future income. (like buying a home)
- Single Premium: One premium payment, which builds cash value much quicker than a policy paid installments. This can be a way to leverage your money with an insurance need.
There are several types of life insurance available. We are here to help you find the best fit both in coverage and expense. Contact Us today for a quote.
Benefits of Having an Annuity
Annuities are free from any market risk
Simply, you cannot lose money in a FIXED annuity (this is not true of variable annuities and we do NOT offer those).
No sales charges or commission deduction
Our agency is paid by the company you chose to work with. These fees are not directly charged to you or deducted from your account.
You do not owe taxes on the interest earned until you actually withdraw that money.
Guaranteed Rate of Return
Your interest rate is contractually guaranteed for the term of the contract. On indexed products you can also take advantage of the market upswing while protecting your principal from the market downturns (pretty attractive strategy right now in our current economic environment).
Annuities Avoid Probate
Your account value goes directly to your beneficiary.
Create a Stream of Income
The Annuity is the only product that has the option (if you chose) to create an income stream that cannot be outlived. This is an important factor to people who are concerned about outliving their assets.
There are many ways to access your money: Monthly/annual interest payments, 10% penalty free withdrawals yearly, many policies have riders allowing early access to money for nursing home care or terminal illness.