Insurance

What is Insurance?

Insurance can be defined as a transfer of risk from the individual to a group. Also there must exist a sharing of losses by the members of the group. The group is created by an insurance company’s pool of customers or insureds. An insurance contract is an agreement whereby the policy holder pays a stipulated premium to the insurance company in return for which the insurance company agrees to pay a defined amount of money if the person whose life is insured dies or suffers an illness or other disability during the term of the policy.

Life Insurance

There are several types of life insurance

Term Life Insurance

A low-cost solution for short term needs. Your beneficiary(s) receives a guaranteed death benefit upon your death. The insurance stays in force for a predefined term. The payments (premiums) are low and can either be level or annually increasing.

Whole Life Insurance

Generally, a level premium, strong guarantees and valuable protection. It can build cash value which you have access to through policy loans.

Universal Life Insurance

A type of permanent life insurance that has a savings element and low premiums similar to those of term life insurance. Most have a flexible premium option throughout the duration of the contract.

Variable Life insurance

A type of permanent life insurance that has sub accounts the cash value is invested in. The sub-accounts are similar to mutual funds. The cash value varies according to the amount of premiums paid, policy fees and expenses and the performance of the sub accounts. Many variable contracts have the flexibility of a universal life contract.

Index Universal Life Insurance

A type of permanent life insurance that is similar to a variable life policy only that the cash value is based upon various equity and bond indexes. Unlike the variable life contract, the cash value never decreases when the market index declines. The index universal life contract is a safer alternative to the variable life insurance contract.

Annuities

As you near retirement, you may worry about how to protect yourself from outliving your savings. Annuities are built for the long-term. They help by locking in guaranteed income streams. They can potentially grow you next egg and also provide death benefits for loved ones. Some people decided to transfer a portion of their accumulated 401(k) account money to an annuity. Annuities are built with guaranteed fixed interest rates or can provide market-based performance. Annuities offer many options to protect your money from losing value and maintain the lifestyle you have worked for.

An annuity is an investment that provides safe, tax-deferred growth of your retirement nest egg. Annuities are considered low-risk, and can provide guaranteed, monthly income when you retire. There are many types of annuities with varying features & benefits. These include fixed, variable, immediate, deferred & hybrid. We strongly suggest you consult with a financial professional to help you understand the various types of annuities before you purchase.

Choosing the right annuity is about finding your optimal balance of growth and security. Factors to consider when searching for an annuity are:

Stability and lower risk.

There are people who prefer a fixed interest rate and do not want to take risks with their retirement funds. These are annuities that provide guarantees to your principal so you cannot lose your principal.

Other people want to grow their money. There are annuities that are linked to the equity market indexes and provide similar market returns.

Single Premium Deferred Annuity

Also, can be referred to as a Fixed Annuity Contract. Similar to a Certificate of Deposit at the bank a fixed annuity provides a set interest rate over a set period of time and upon maturity the annuity owner, Annuitant, has the option to renew or continue the contract with the insurance carrier at the new offered rate and maturity or has 30 days to transfer the funds to another annuity, savings vehicle or investment.

Variable Annuity

A contract that provides benefits that vary directly with the investment experience of the assets that back the contract. Assets backing variable annuities, like those backing variable life policies are maintained in a separate account and the investment results are reflected directly in the variable annuity values. The separate account is referred to as sub-accounts and are like mutual funds. The account value varies according to the amount of the performance of the sub accounts.

Fixed Indexed Annuity

The indexed annuity is a hybrid of the fixed and variable annuities. The account values are based upon various equity and bond indexes. Unlike the variable annuity contract, the account value never decreases when the market index declines. The indexed annuity is a safer alternative to the variable annuity contract.

Getting Married

As you and your spouse grow your lives together, you should consider a few things about your now joint finances.

Buying a home and saving for retirement may be a part of your short and long-term plans. There will be years during your life together that things may seem uncertain. You will probably change jobs several times throughout your careers. You may move to a different part of the country. You may decide to have children. It is understandable if you have not figured it all out to start with. Many newlyweds will start a plan that evolves over time.

It takes a lot to save for things like purchasing a home, paying down debts, or preparing for the cost of childcare and eventually college or a trades school. Ensuring you have the right protection to support your family and saving for the future is of monumental importance.

You may not know it but there are insurance and financial products that provide for more than just one purpose. Explore some options and learn more.

Income protection

As a married couple you more than likely have dual incomes and dual debt. It is proper for you to protect your spouse in the event something happens to you. A life insurance policy protects your spouse and children in the event of your untimely demise. It protects their income and lifestyle while you are gone.

Find the right life insurance that fits you and your family’s needs.

Saving for the future

You may already participate in your employer’s retirement plan. It is also important to have access to savings that are not earmarked for retirement. Whether you invest in mutual funds, exchange trade funds, or have safe money such as CD’s or fixed annuities. It is important to have access to funds that are not subject to a penalty when you need them. Each vehicle has features dedicated to risk and reward. Having access in the short term while still allowing your money to grow for future needs is significant.

Growing Your Family

An expanding family creates more financial responsibilities.

As a family expands there are financial details parents should consider. Priority one is protecting your income. Coverage for when you are not able to work. Having the right amount of coverage to ensure your family is able to meet day to day expenses is important. You may have insurance through work, but it may not provide you with the coverage you need.

Creating a savings plan which is a tough balancing act given your expenses are increasing due to childcare, groceries, diapers, mortgage or rent payments and so on. By prioritizing your saving for the future, you will be prepared for the coming expenses. Expenses such as cars, sports and equipment, musical instrument, college or trade school expenses and more.

Planning Your Retirement

Are you planning for retirement? Or has time caught up with you and you need to catch up so that you can retire. Either way we can help. And by the way, a 401k is not the only retirement plan that is available to you. We have experience in plan design for businesses and individuals. With the future expectations of higher income taxes. Income taxes that will erode your retirement income. It is not only important to plan how you will accumulate your retirement assets. But it is important as to where you accumulate your retirement assets. Then how you will receive your retirement income.

Ensuring you have a consistent and safe source of income will allow you to maintain your lifestyle and your ideal retirement. In addition to income, you should plan for life’s unexpected events that might disrupt your retirement. There are solutions available to help you prepare for these events and protect you and the lifestyle of your loved ones.

iStructure™ Annuity

We are now offering a unique concept where an owner who sells a business or a real estate investor sells a property and defers the capital gains tax to future years. A structured installment sale where the proceeds are transferred to an index annuity. The installments are decided upon and the annuity is structured in advance. The concept falls under IRC Seciont 453. The IStructure Annuity can be used for the following transactions.