Month: September 2017

Life insurance policies exist to provide a layer of financial security for the beneficiaries left behind. Policies are generally built around paying a minimal installment for the greatest payout. The payouts enable beneficiaries to navigate financial hardships following the passing of loved one, friend, or colleague. Life insurance policies can provide the immediate funds to overcome these challenges. Some of the burdens beneficiaries may face are:

• Equalize an Estate. Policy payouts can equalize the balance of an estate. In cases where a family business exists but not all family members take part, policies can help balance estate value. If the deceased donated considerable sums to charitable organizations, policies can help compensate estate accounts.
• Pay Estate Taxes. Estate taxes can cripple those without access to liquid funds. A life insurance policy can provide immediate funds for payment of the estate tax.
• Facilitating Business Succession. Business partners listed on a policy may use life insurance payouts to buy company shares or stock from the estate of a deceased partner.
• Replacing Essential Staff. Life insurance plans can help businesses cover expenses associated with the loss of a key employee.

Term and Permanent Life Insurance: A Breakdown

You can select between two life basic insurance policy options: term and permanent life insurance. Your own objectives will help determine which is the best policy for you.

Term Life Insurance

* With term life insurance, contributors pay a fixed amount into the policy for a set period of time. Payments made into a term life policy count as expenses that may or may not return any value. If the policy is not used within that time it will become void.

Permanent Life Insurance

Permanent life insurance policies offer up to lifetime coverage, depending on the policy. Permanent life insurance policies have a major benefit over term life policies. The payments made on a permanent life insurance policy create a cash value for your policy. This turns a life insurance policy into a vehicle for investment. With the right language on your policy, the cash value of the policy will be subject to the same taxation as a 401k or Roth IRA plan.

Permanent Insurance: Advantages over 401k/Roth IRA

Permanent life insurance plans offer considerable advantages for investing over Roth IRA plans. Both use after-tax dollars to grow, but permanent life insurance policies place no limit on the amount (so long as other policy requirements are met). Permanent life insurance plans do not place restrictions based on income. Perhaps of most value to those retiring younger – permanent insurance plans will not penalize for withdrawals made before age 59 1/2.

Candidates for investing using permanent insurance plans include all walks of life. Permanent life insurance plans offer tax-smart places for investing income. These policies offer a place to invest for those unsure about the stock market. They can be an alternative for costly bonds. If you’re interested to see how you can create value and invest using life insurance, contact your advisor today.

The current world has many insurance related issues and topics that affect our finances and health. Such issues play a pivotal role in our lives. If you have any information regarding such topics, please feel free to share with us. We are happy to help you tackle any life insurance questions or any insurance-related questions you may have.

Many recent graduates are usually weighed down by thousands in college loans. In fact, about 40% of students usually owe over $20,000 after graduating! That’s double the figure a decade ago. This is based on a report recently released by experts from Consumer Security Bureau. These experts calculate the number of students owing loans over $50,000 has more than tripled. That’s based on growth from 5% to 16% over that period. Students have their whole lives ahead of them – or so it seems. Sometimes, tragedy occurs and those loans are passed on to grieving family members. Plan for the future to avoid extra pain. Students should consider life insurance plans to cover their student loan expenses.

Who Pays for the Loan

Betsy Mayotte, director at the Consumer Outreach and Compliance for American Trainee Aid, says the financial obligation on the student’s loan must be upheld. This has to be the guarantor or cosigner in the event that the student passes on. Ms. Mayotte notes that unfortunately, parents and guardians of students rarely consider student loans and life insurance together. In the event a student passes on, cosigners must take charge of the loan payments. Usually, this means the entire outstanding amount of the loan. Mayotte claims spouses are also often made to pay outstanding student loans for deceased partners. This happens even when spouses did not cosign. Spouses may be called upon to meet the obligation of other loans their partner sustained throughout the relationship. This danger can be avoided.

With the right life insurance plan, you can avoid repayment of student loans for the deceased. According to John Ryan, Principal of Ryan Insurance Coverage Method Professionals, these policies are quite affordable. Ryan contends it is quite sensible to do so, even if young people are not at a high risk of death under normal circumstances. Insurance companies know there is low risk involved; policies are thus affordable. For example, a $250,000 insurance plan with a maturity period of 10 years, taken by a 25-year-old student, costs only about $100 per year.

The Right Life Insurance Policy

To determine your coverage, analyze the terms on offer. This will help you know what to expect in the event of your death. Federal student loans are usually written off in the event of student death. The same applies even to cases where the parents or guardians of the student sign for the loans. Outstanding amounts can still attract tax attention. According to Ms. Mayotte, co-signers may still have to face some level of financial obligation – whether the loans are written-off or not. Mr. Ryan contends that some, though not all, financial institutions may write off the debt if students are handicapped or die. It is you to scrutinize the terms of financing from your institution to understand exactly what will happen in case of death.

Should you determine life insurance coverage is necessary to cover the debt, find a policy covering the whole amount for the whole term. This is according to CFP Carrie Jones – an insurance expert with Life Planning Partners in Jacksonville, Florida. Jones advises a single policy, stating it’s cheaper to protect a $50,000 loan instead of splitting the amount into two separate $25,000 policies. This is true even while over time, loans diminish as students repay them. Taking a one-time policy works out to be cost-effective in the end. Some life insurance providers allow policyholders to reduce their coverage many times over the policy term. According to Ryan, it is important to ask about this while talking to insurers.

Getting Things Right

Carries Jones says the parent, guardian or otherwise co-signer of the student-loan should be named the beneficiary of the life insurance policy. This protects co-signers in the event students fail to keep up with loan payments, cancel the plan, or die. Life insurance plans can be transferred back over to the graduate, should the need occur. If the worst happens and a student passes on, co-signers should ask their insurance provider about their options for compassionate review. In some cases, this can help erase the balance of the loan. This is not guaranteed. Ms. Mayotte holds life insurance is the best way assure loan co-signers are not left in a tight spot if the student were to die.

We welcome any insurance information that relates to your health and finances. If you have any insurance topics or ideas please feel free to share with us. We are also ready to provide answers for insurance related questions. Contact us for help.

The best way to ensure you meet your daily exercise goals is to want it. When we’re motivated to succeed, we’re much more likely to accomplish our goals. It’s the difference between waking up refreshed, and waking up exhausted. This applies to almost our entire lives. An enjoyable workday goes fast, but the opposite can make time stand still. Things are easier and much more rewarding when they are enjoyable.

Exercising can be an exciting addition to your day or something you spend all day dreading. How you choose to approach your workout will help determine your experience and your rewards. You’re more likely to continue working out if you enjoy it. Something you do often is more likely to become a habit. If you want to make exercise an easy and fun part of your life, find an exercise you enjoy.

Enjoy the outdoors? Find a sport or activity in your area. Many exercise options exist outside the gym, giving you a great excuse to be outdoors. If you’re an indoor enthusiast, gyms have regular and specialty equipment to attract many different types of people. Other activities such as indoor rock-climbing, yoga, and swimming can help you find something you enjoy. The ultimate goal is to find a form of exercise you enjoy. When you enjoy something it’s much easier to find the time.

When you look at the pool of exercise options to choose from, there’s nearly something for everyone. From a health perspective, activities combining strength, cardiovascular, and balancing exercises are best. Depending on your preferred exercise methods, this may require you to include multiple in your routine. A balanced combination will aid in your body’s development and capability.

Few people are professional athletes. For most of us, exercise will sometimes push us to the limit. It’s important to stay focused to develop and maintain healthy exercise habits. Trying new exercises and activities can help you stay excited about working out. Your body doesn’t know the difference between working out in a gym and working out doing something else you enjoy. What matters is that you get your body moving. How YOU think about it does matter.

When you approach exercise excited and motivated you’re more l going have the best chance to get the most out of your workout. Look at it like a chore and you’ll start to find reasons to avoid it. Enjoy it and you can easily build a habit and lifestyle incorporating exercise into your daily life.

We are always looking for great info for helping you maintain a healthy body and healthy bank account. Have any insurance-related questions? Give us a call!