Universal Life Insurance

What is Universal Life Insurance?

Universal Life Insurance is a form of Permanent Life Insurance that will provide full coverage for the entirety of your life. This is done while offering flexibility that allows the insured to raise or lower their premiums and coverage amounts as needed.

Features of Universal Life Insurance

Universal Life Insurance is unique in that it is completely flexible regarding payments of premiums and coverage amount. Unlike other permanent policies, the insured can choose to raise the coverage amount of Universal Life if warranted and lower it as circumstances of life change.

In addition, the insured can choose to pay more premium or less premium to increase the amount paid into the policy. This will also provide for more living benefit if needed. Of course, all these features must be written into the policy and they must adhere to specific guidelines.
However, the benefits of such a policy can be amazingly helpful as your priorities change.

Financial Solutions with Universal Life Insurance

Universal Life Insurance is often utilized as a financial planning tool, in addition to a life insurance tool. With Universal Life Insurance, the insured can obtain specific financial solutions that will help:

• Preserve wealth.

• Replace income.

• Provide a death benefit.

• Provide a cash value.

Using a Universal Life Insurance policy as part of your financial portfolio will help make sure you and your family are better prepared for illness, disability, retirement, and death. In addition, you will be able to customize this policy as the years progress, to ensure you are not over or underinsured. 

Income Protection

Your family depends on your income to cover the costs of living. If you become disabled, you want to ensure your family doesn’t struggle financially. If you don’t have Income Protection, they will be facing more than the emotional effects of your illness or injury. They could be facing money problems and the inability to pay the bills. With Income Protection, you can rest assured your family will have access to the finances they need should the unexpected occur.

Features of Income Protection

If something should happen to you, you don’t want to lose your biggest asset – your income. With Income Protection coverage, you can make sure you and your family have the funds they need to pay for their basic living necessities, such as the mortgage or car payments. With Income Protection, you can meet your regular financial obligations, which will allow you to keep your long-term family goals on track.

If you are hurt on the job, then you might be eligible for Workers’ Compensation benefits. Income Protection offers much more because it will cover a portion of your income when you are not able to work, regardless of whether your illness or injury is work-related. This offers the protection you need, whenever you need it.

Financial Solutions with Income Protection

If the unexpected should happen and you should die, your family can suffer financially because they have been dependent on your income. Without your paycheck, they may not be able to pay the bills. They might even struggle to pay other basic costs, such as utilities or for medical care. When you purchase Life Insurance, it offers Income Protection after you are gone.

Life Insurance offers:

• A monetary benefit to your beneficiary in the event of your death.

• Provides financial protection for your family.

• The money from your life insurance can be used however it is needed – funeral expenses, to pay off the mortgage, educational expenses, and any other short-term or long-term debts that your family may have incurred.

While many people think insurance is expensive, it is very affordable. You will not go bankrupt because of buying insurance, but you could cause your loved ones to go bankrupt if you don’t buy the proper level of coverage that provides Income Protection.

Life Insurance coverage won’t change your life, but it can help protect you and your family from facing unwanted lifestyle changes. An illness or death can financially devastate a family by destroying their life savings. With Income Protection, you can make sure living expenses, medical bills, and even funeral expenses are covered.

Living Benefits

What are Living Benefits?

Living Benefits is an optional add-on to Life Insurance policies that allow the policy owner to apply for an advance payment of their death benefits during the lifetime of the insured. Also known as Accelerated Death Benefits, this coverage allows the policy-owner to have access to all or part of their death benefits while they are still alive.

Features of Living Benefits

The general purpose of Living Benefits coverage is to allow the policyholder to use their Life Insurance benefits while they are still living, in the event of a severe injury, terminal illness or other medical condition that leaves them unable to work. With this form of coverage, the policyholder can offset their financial issues by having easy access to their Life Insurance benefits.

Living Benefits coverage can offer a great benefit to policyholders when they experience a chronic or critical injury or illness and are no longer able to work. These benefits can be used to cover:

• Everyday household expenses

• Utility bills

• Rent

• Nursing Home Care

• Adult Day Care

• Payment for any other debts that can help to improve the policyholder’s quality of life.

These benefits provide an excellent back-up plan that can ensure you and your family have the funds you need even if you are unable to provide financially.

Financial Solutions with Living Benefits

Living Benefits add-on coverage can offer many financial solutions for Life Insurance policyholders.
In most cases, a Living Benefits Rider can pay between 24 and 100 percent of the total death benefit,
which will not be considered taxable. However, most policies will have a set dollar limit enforced.

One downside to using the funds from a Living Benefits add-on is there are fees involved. Life Insurance companies receive a profit every time one of their policyholders takes advantage of Life Benefits. Some companies offer a Living Benefits Rider included with all other policies free of charge. Others offer it as an optional add-on that may sometimes involve a one-time fee when the policyholder signs up.

A Living Benefits Rider can be an exceptional tool for any Life Insurance policyholder who is looking for the added advantage of financial help during difficult times. Deciding if it is the right choice for you may take some time. Fortunately, there are insurance and investment experts available to assist you with your long-term financial and Life Insurance goals.

Retirement Savings

What are Retirement Savings?

Retiring is a milestone many people look forward to. You have put in the work, and now you get to enjoy the fruits of years of labor. From traveling to pursuing hobbies to spending more time with family, retirement means freedom and enjoyment to many people.

Retirement Savings include money, stocks, bonds, and other investments you’ve saved up specifically to use during these years. This can include Social Security payments or pension payments from a job. This money needs to be enough to take care of your financial obligations like housing, food, and other insurance policy payments, in addition to money for travel, hobbies, and general enjoyment.

Saving money for that dream retirement can seem like a daunting task. Even if you’ve worked your entire life, your savings could be at risk. There are four financial catastrophes that could occur.

These include:

• Early death

• Disability

• Economic downturn

• Not saving enough money

Life Insurance is the only hedge against all four catastrophes, not just the first.

Features of Retirement Savings

There are a few features of Retirement Savings plans. Some people might be offered a 401K retirement plan through their employers. Employers can agree to match your contributions to this retirement plan which gives you more incentive to start saving for retirement as soon as possible. There are also independent retirement accounts, like IRAs. IRAs allow for a certain contribution amount per year leading up to the time when you’d start making withdrawals from that account.

Some other features of Retirement Savings include:

• Paying tax on Retirement Savings now or waiting until the money is withdrawn.

• Adding stocks, bonds, and other investments into a Retirement Portfolio.

• The ability to withdraw money from a Retirement Savings account at any time.

• Switching Retirement Savings to another account.

Financial Solutions with Retirement Savings

Other financial solutions with Retirement Savings include Life Insurance. Not only is Life Insurance essential for your financial health, but for your retirement plans as well.

Life Insurance can help protect against:

Early death or disability – Life Insurance can help protect your loved ones in case you pass away or become disabled. That money could help pay for additional medical expenses you may have, or help your family pay for funeral costs and other financial necessities in the wake of their loved one’s death.

Downturn in the economy – Life Insurance can help make up for financial losses that occur in an economic downturn. If your investments lose value and aren’t fully insured, a Life Insurance policy could help make up for this financial depreciation.

Improper preparation – Life Insurance can help if you didn’t prepare adequately for your retirement years.  This policy provides protection and peace of mind.

Annuity

What is an Annuity?

An Annuity allows an individual to deposit money by way of premiums with an insurance company. It is designed to earn interest and grows on a tax-deferred basis with the understanding the insurance company will in time provide a series of repayments to the customer at regular intervals.

Typically, people purchase Annuities to provide for or supplement their retirement income
received from pension benefits, Social Security, investments and other sources. Unlike standard Life Insurance, that pays upon the death of the policyholder, an Annuity pays on the terms set up within the Annuity. The major appeal of an Annuity is the ability to convert it into a stream of income that can then be paid over a set period, or for the duration of your lifetime. You may choose to take withdrawals of varying amounts when the need for funds arises.

Features of an Annuity

Now, more than any other point in U.S. history, people are responsible for acquiring their own retirement savings. Two things are certain in life: you will live, and you will die. If you live, you will need a financial source to live on. If you die, your family will need help to get by without your income source. Annuities can help you plan for future. Generally, there are two different types of Annuities:

Immediate – Providing income payments that typically begin within a year after the premium is paid.

Deferred – Providing income payments that start later, usually after a long period of time. Deferred Annuities are for those individuals looking for long-term savings solutions. They are available for purchase by using one lump sum, or with flexible premiums made over time. Also, when it is time for a payout from your Deferred Annuity, you will have several options to meet your financial needs.

Financial Solutions with Annuities

If you’re looking for options to save more funds for retirement or generate a reliable income during retirement, an Annuity may be the answer for your situation. They can provide tax benefits and when you retire, give you the option of a guaranteed income for as long as you need it, even over the course of your lifetime. With an Annuity you can:

• Increase your savings.

• Create a steady stream of income.

• Preserve what you’ve saved.

• Take a lump-sum payment or choose guaranteed payments.

• Take advantage of a no annual contribution limit.

Using an Annuity as part of your financial portfolio will help make sure you and your loved ones are better prepared for the unexpected — illness, disability, and death. While Annuities are most often used in retirement, they can also be a steady income if you are financially independent or from a lump sum inheritance.

Pension Plan

You work hard to save money for your retirement. Ensuring your future is properly funded is important to you and your family. You want to acquire enough funds to live comfortably after you retire into your golden years. One of those means of savings is your Pension Plan. Yet, in today’s economy, some wonder if it will be enough.

What Is A Pension Plan?

A Pension Plan is an employer-sponsored retirement plan. Your employer allocates a set percentage of funds, usually determined by a percentage of your salary over a given period of time you have worked with the company. You can then choose to add additional funds to boost your retirement account.

In addition to Pension Plans, different companies use different types of plans to help employees put away funds for retirement. Depending on your employer and their benefits package, a Pension Plan might be your only option to save for retirement in lieu of a 401(k), Profit Sharing Plan, or a 403(b).

Like Pension Plans, 401(k) plans are retirement plans included in benefit packages offered by many employers. While there are some similarities in these plans, there are also some major differences.

• Pension Plans are based on employer contributions, 401(k)s are based on employee contributions. Both may offer matching contribution options by the other party.

• Pension Plan investments are controlled by the employer, with 401(k)s the employee has control over the investment allocation.

• Pension Plans guarantee a monthly check upon retirement, a 401(k) cannot guarantee returns on the plan.

Financial Solutions with Your Pension Plan

To ensure your family has the finances needed, you should be proactive and supplement your Pension Plan with other products. People don’t always want to buy supplemental products; they want to buy what supplemental products do – protect you from not having enough money in retirement. However, what may be a difficult decision now, may turn out to be the best thing for your financial future.

Some other products that can help you with financial stability include:

Annuities – This can supplement your Pension Plan and offer you retirement income that lasts a lifetime.

Living Benefits – This is an Accelerated Benefit Rider that allows you to access either all or some of your death benefits while you are alive. However, you must experience a qualifying chronic or critical illness or
injury.

Life Insurance – Life Insurance will allow you to leave cash to your loved ones so they can continue with their lifestyle. It will cover the loss of your income and your funeral expenses as well.

Final Expense

What is Final Expense Insurance?

There are costs to pay associated with a person’s passing, whether it is a cremation or a burial. The bills accrued are called final expenses. This includes expenses associated with:

• Working with a funeral home.

• Your memorial service.

• The newspaper or online obituary.

• Your final resting place.

All these expenses can be paid with a Final Expense Insurance Policy.

Features of Final Expense Insurance

Final Expense Insurance is designed specifically to cover final expense costs. This type of policy is usually a smaller Life Insurance Policy, coinciding with the expected costs of your final expenses. As a result, the premiums are also much lower than an average policy.

The Final Expense Insurance policy is a type of permanent policy geared towards people over the age 55. These policies do not expire and can offer a cash benefit if paid in full prior to the insured’s death. In addition, because it is a lower benefit than most insurance policies, it is rare an insurance company will require a medical exam for a Final Expense Insurance policy.

Financial Solutions with Final Expense Insurance

Final Expense Insurance as a financial solution is a wonderful opportunity to make sure your heirs have the ability to utilize their inheritance as they wish, as opposed to tying up loose ends connected with funeral costs. In addition, it allows you to plan according to your wishes and leave the appropriate amount of money in a Life Insurance policy (which stays out of your estate) as opposed to hoping your family has the money to pay for your wishes.