Hello all! Well, my 20th year in business continues to be amazing! I have an interview coming up with a potential agent who wants to join me working at Five Rings Financial, I helped a long time girlfriend last week set up an annuity for her retirement and I have helped a long time gal pal set up a travel medical insurance plan for her trip to Brazil coming up. As you all know, your health insurance here in the US does NOT cover you out of the US. Awesome!
Next week I am speaking at the NAIFA CA Palomar monthly meeting, I am educating the Financial Planners and Agents on the importance of social media for the insurance Agent. Yahoo!!! Crazy
Below you will find our up coming free events for March.
You can also find them any time at www.FiveRingsEducation.com
CALIFORNIA CALENDAR OF EVENTS
Wine, Women & Wealth (all locations start at 7 PM)
March 5th - Carlsbad
RELM
2917 State St
Carlsbad CA 92008
March 7th - Irvine
Wine Styles
3975 Portola Parkway
Irvine CA 92620
March 12th - San Diego
Hacienda de las Rosas
2754 Calhoun St
San Diego CA 92110
March 13th - Redondo Beach
Total Wine
1505 Hawthorne Blvd
Redondo Beach CA 90278
March 14th - Temecula
The Wine Company
29073 Overland Drive, Suite A
Temecula CA 92591
March 26th - Sorrento Valley
Location: Hera Hub at 5:30 not 7pm!
March 28th - Rancho Bernardo
The Bernardo Winery
13330 Paseo Del Verano Norte
San Diego CA 92128
MONEY 101 (all locations start at 6:30 PM)
STAY TUNED FOR DATES
Showing posts with label life insurance. Show all posts
Showing posts with label life insurance. Show all posts
Wednesday, February 29, 2012
Tuesday, September 21, 2010
LIAM Press Release
FOR IMMEDIATE RELEASE CONTACT: Katherine Wichmann Zacharias
(619) 208-7717
THREE WAYS TO HELP YOU SAVE MONEY ON YOUR LIFE INSURANCE
Local Insurance Expert Offers Cost-Cutting Tips for Consumers
Encinitas, CA 9/1/10 – There may be a silver lining to the economic crisis that Americans have lived through over the past two years: We have become accustomed to spending less and saving more. Even as the economy rebounds, many people continue to look for ways to keep their household budgets in check. Luckily, spending less doesn’t have to mean doing with less, especially when it comes to life insurance coverage. There are ways you can maintain your coverage, but pay less for it.
“Life insurance is a financial safety net for your loved ones, so it’s critical to maintain that coverage especially with the uncertainty that remains in the economy,” says Katherine Wichmann Zacharias, Independent Insurance Broker & Financial Rep. with KSWZ Insurance Services & Five Rings Financial. “But keeping that coverage doesn’t have to be a financial burden. There are ways to save money on your existing coverage, and I’ve got some tips to help you do just that.”
September is Life Insurance Awareness Month, the perfect time to review your life insurance needs with an insurance professional. If you already have coverage, you may be able to cut costs based on the following, says Wichmann Zacharias:
You’re healthier. If you have quit smoking, lost a substantial amount of weight or made significant improvements to your health, let your insurance company know. You may be able to qualify for a lower rate on your coverage.
Rates are near historic lows. Life insurance rates remain near historic lows. In fact, the cost of basic term life insurance has fallen by nearly 50 percent over the past decade. So if your family’s budget is tight and your health status hasn’t changed much since the time you last purchased coverage, you may want to apply for a new policy. If you do, make sure not to drop your current coverage until the new policy is in force.
Circumstances have changed. It is smart to review your policy every year to make sure it’s adequate and up to date. If the kids are out of the house, your mortgage is paid down, you’ve gotten divorced or family members no longer need your financial support, your need for life insurance coverage may have decreased. A smaller face amount policy will likely save you money.
“If people depend on you financially, life insurance is an absolute must,” says Wichmann Zacharias. “But no one should pay more than they have to.”
About Life Insurance Awareness Month
Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by the nonprofit LIFE Foundation. The campaign was created in response to growing concern about the large number of Americans who lack adequate life insurance protection. Roughly 70 million adult Americans have no life insurance, and most of those who do have far less coverage than most financial experts recommend. For more information on life insurance, visit LIFE’s website at www.lifehappens.org.
About Katherine Wichmann Zacharias & KSWZ Insurance Services & Five Rings Financial
www.kswz.biz
www.fiveringsfinancial.com
###
(619) 208-7717
THREE WAYS TO HELP YOU SAVE MONEY ON YOUR LIFE INSURANCE
Local Insurance Expert Offers Cost-Cutting Tips for Consumers
Encinitas, CA 9/1/10 – There may be a silver lining to the economic crisis that Americans have lived through over the past two years: We have become accustomed to spending less and saving more. Even as the economy rebounds, many people continue to look for ways to keep their household budgets in check. Luckily, spending less doesn’t have to mean doing with less, especially when it comes to life insurance coverage. There are ways you can maintain your coverage, but pay less for it.
“Life insurance is a financial safety net for your loved ones, so it’s critical to maintain that coverage especially with the uncertainty that remains in the economy,” says Katherine Wichmann Zacharias, Independent Insurance Broker & Financial Rep. with KSWZ Insurance Services & Five Rings Financial. “But keeping that coverage doesn’t have to be a financial burden. There are ways to save money on your existing coverage, and I’ve got some tips to help you do just that.”
September is Life Insurance Awareness Month, the perfect time to review your life insurance needs with an insurance professional. If you already have coverage, you may be able to cut costs based on the following, says Wichmann Zacharias:
You’re healthier. If you have quit smoking, lost a substantial amount of weight or made significant improvements to your health, let your insurance company know. You may be able to qualify for a lower rate on your coverage.
Rates are near historic lows. Life insurance rates remain near historic lows. In fact, the cost of basic term life insurance has fallen by nearly 50 percent over the past decade. So if your family’s budget is tight and your health status hasn’t changed much since the time you last purchased coverage, you may want to apply for a new policy. If you do, make sure not to drop your current coverage until the new policy is in force.
Circumstances have changed. It is smart to review your policy every year to make sure it’s adequate and up to date. If the kids are out of the house, your mortgage is paid down, you’ve gotten divorced or family members no longer need your financial support, your need for life insurance coverage may have decreased. A smaller face amount policy will likely save you money.
“If people depend on you financially, life insurance is an absolute must,” says Wichmann Zacharias. “But no one should pay more than they have to.”
About Life Insurance Awareness Month
Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by the nonprofit LIFE Foundation. The campaign was created in response to growing concern about the large number of Americans who lack adequate life insurance protection. Roughly 70 million adult Americans have no life insurance, and most of those who do have far less coverage than most financial experts recommend. For more information on life insurance, visit LIFE’s website at www.lifehappens.org.
About Katherine Wichmann Zacharias & KSWZ Insurance Services & Five Rings Financial
www.kswz.biz
www.fiveringsfinancial.com
###
Friday, April 30, 2010
Why Life Insurance?
Why Life Insurance
The death benefit:
- Brings a check to the family when they need it most.
- It keeps the family grounded and not having to move in with Gramma because they have to sell the house.
- Children do not have to change schools.
- Self fulfilling college fund!! When parents set up college funds, what happens to that plan if both parents(or even one) is taken away (meets the main man).......who funds the college plan then??? So the question to ask the parents is....do you want your children to go to college only if you LIVE???? Life insurance completes the plan instantly.
- There is no other product in the WORLD that you could put a few premiums into and then possibly create an instant estate of thousands and millions of dollars.
- Charities are created and continued.
- Business can be purchased.
- Businesses can continue.
- If the rep doesn't sell life insurance to his clients.......someone else will!
- Large estate tax burdens can be paid, leaving the estate whole. Stops the fire sale.
- Provides for the family, when the one insured cannot.
- Protects the insurability... if a permanent plan is purchased. Our health doesn't get "better" as we age.
- Here is a situation people do not like to talk about: God forbid your child dies. It does happen, we know. We know the final expenses are tremendous.....but another thought is "When will you be able to return to life and work again?.......a week?.....a month?.....a year?" I know if my girl was to die, I would be a basket case. I also know that people still have to provide for the survivors. The spouse, surviving children, mortgage payments, car payments, councilors, food,.......all of those bills continue. There is a place for coverage on children.
The death benefit:
- Brings a check to the family when they need it most.
- It keeps the family grounded and not having to move in with Gramma because they have to sell the house.
- Children do not have to change schools.
- Self fulfilling college fund!! When parents set up college funds, what happens to that plan if both parents(or even one) is taken away (meets the main man).......who funds the college plan then??? So the question to ask the parents is....do you want your children to go to college only if you LIVE???? Life insurance completes the plan instantly.
- There is no other product in the WORLD that you could put a few premiums into and then possibly create an instant estate of thousands and millions of dollars.
- Charities are created and continued.
- Business can be purchased.
- Businesses can continue.
- If the rep doesn't sell life insurance to his clients.......someone else will!
- Large estate tax burdens can be paid, leaving the estate whole. Stops the fire sale.
- Provides for the family, when the one insured cannot.
- Protects the insurability... if a permanent plan is purchased. Our health doesn't get "better" as we age.
- Here is a situation people do not like to talk about: God forbid your child dies. It does happen, we know. We know the final expenses are tremendous.....but another thought is "When will you be able to return to life and work again?.......a week?.....a month?.....a year?" I know if my girl was to die, I would be a basket case. I also know that people still have to provide for the survivors. The spouse, surviving children, mortgage payments, car payments, councilors, food,.......all of those bills continue. There is a place for coverage on children.
Tuesday, September 1, 2009
September is Life Insurance Awareness Month
A recent survey indicates that 68 million Americans have no life insurance and those with coverage have far less than most experts recommend ensuring a secure financial future for their families. In fact, ownership of life insurance has been declining for decades and the impact is being felt in very human terms today. When a loved one dies without adequate life insurance coverage, surviving family members often face very difficult financial consequences like having to work additional jobs or longer hours, borrow money from friends and family, move to smaller, less expensive housing, or put plans for a child’s education on hold.
With so many Americans in a financially vulnerable situation today, the life insurance industry has created a month-long public awareness campaign aimed at encouraging the public to take stock of their life insurance needs. Life Insurance Awareness Month (LIAM) is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE). Each year, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups. All share the same objective: to end the unnecessary financial suffering that so often occurs when a loved one dies.
Please Email or call me (619) 208-7717 if you would like a free review of your life insurance. thewic@sbcglobal.net
With so many Americans in a financially vulnerable situation today, the life insurance industry has created a month-long public awareness campaign aimed at encouraging the public to take stock of their life insurance needs. Life Insurance Awareness Month (LIAM) is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE). Each year, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups. All share the same objective: to end the unnecessary financial suffering that so often occurs when a loved one dies.
Please Email or call me (619) 208-7717 if you would like a free review of your life insurance. thewic@sbcglobal.net
Monday, August 24, 2009
Security No Matter What Life Throws Your Way
We live in an age of insecurity. No one wants to lose what they have worked so hard for. It's important to include life insurance among your financial options. Life insurance may be an old-fashioned way to protect yourself and your family, but it is still one of the best products you can buy.
No other financial instrument will do what life insurance can do. The moment your life insurance policy goes into force, the full death benefit to your beneficiary is guaranteed, from day 1 and for as long as you continue to keep the policy in force by paying the premiums. Financial planners call this aspect of life insurance "creating an immediate estate."
Life insurance can seem complicated. There are more products than just term and permanent life insurance. Term and permanent life insurance have many riders and variations that can be added to suit your family's needs.
This is to your advantage. It means greater flexibility and many options. Therefore, a life insurance protection plan can be designed to fit the individual needs of your family.
Various types of policies can serve to protect the family's economic future. Insurers have adapted their products to augment savings and investment programs.
It's important to protect your lifestyle and well-being too. Disability income protection coverage can replace earned income (up to the amount purchased) in the event of serious illness or injury that prevents you from working.
A trained life insurance agent can help you choose from among all the specialized products. Be sure your agent represents a financially strong company. One way to check on a company is through the ratings of such independent evaluators as Moody's Investors Services, Standard & Poor's, A. M. Best, and Duff & Phelps.
No other financial instrument will do what life insurance can do. The moment your life insurance policy goes into force, the full death benefit to your beneficiary is guaranteed, from day 1 and for as long as you continue to keep the policy in force by paying the premiums. Financial planners call this aspect of life insurance "creating an immediate estate."
Life insurance can seem complicated. There are more products than just term and permanent life insurance. Term and permanent life insurance have many riders and variations that can be added to suit your family's needs.
This is to your advantage. It means greater flexibility and many options. Therefore, a life insurance protection plan can be designed to fit the individual needs of your family.
Various types of policies can serve to protect the family's economic future. Insurers have adapted their products to augment savings and investment programs.
It's important to protect your lifestyle and well-being too. Disability income protection coverage can replace earned income (up to the amount purchased) in the event of serious illness or injury that prevents you from working.
A trained life insurance agent can help you choose from among all the specialized products. Be sure your agent represents a financially strong company. One way to check on a company is through the ratings of such independent evaluators as Moody's Investors Services, Standard & Poor's, A. M. Best, and Duff & Phelps.
Monday, July 27, 2009
The Importance of Life Insurance for Young Families
In the event of the early death of a spouse it is important to consider the financial needs of surviving family members. It is unthinkable that the surviving family members would be forced to liquidate personal assets or lose their home simply to make ends meet. It is essential in the present economy to protect our families from this type of financial hardship.
Recently a study found that as much as 75% of people who died between the ages of 30 and 55 left their spouses without adequate life insurance coverage.1
Choosing the Right Coverage
It is important to be well informed when choosing what coverage is best for you and your family. Two types to consider are permanent life insurance and term life insurance. Whether you decide on one type or the other will be based on your specific needs.
Permanent life insurance provides lifetime coverage so long as the premiums are paid when due and also includes the added benefit of accumulating cash value in the policy.
Term life insurance or "temporary" life insurance provides coverage for a specific or designated period of time.
To fully understand your insurance needs you must outline not only the present financial needs of the family but also those projected in the future. Financial obligations such as mortgage payments and other recurring debt payments are key to calculating the right amount of coverage needed. Future factors may include college tuition for your children and retirement plans for your spouse. These factors should be combined with your present source of income and that of your spouse, if any, to determine the right amount to purchase.2
Be Prepared
Since we are unable to predict the future and often life can change in an instant it is essential to plan ahead. It is important to follow these unexpected changes with the evaluation of your life insurance coverage. Such steps will ensure that your family remains financially secure.
1) National Association of Insurance and Financial Advisors (NAIFA) 2004
2) The cost and availability of life insurance depend on such factors as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely there may be surrender charges and income tax implications
Recently a study found that as much as 75% of people who died between the ages of 30 and 55 left their spouses without adequate life insurance coverage.1
Choosing the Right Coverage
It is important to be well informed when choosing what coverage is best for you and your family. Two types to consider are permanent life insurance and term life insurance. Whether you decide on one type or the other will be based on your specific needs.
Permanent life insurance provides lifetime coverage so long as the premiums are paid when due and also includes the added benefit of accumulating cash value in the policy.
Term life insurance or "temporary" life insurance provides coverage for a specific or designated period of time.
To fully understand your insurance needs you must outline not only the present financial needs of the family but also those projected in the future. Financial obligations such as mortgage payments and other recurring debt payments are key to calculating the right amount of coverage needed. Future factors may include college tuition for your children and retirement plans for your spouse. These factors should be combined with your present source of income and that of your spouse, if any, to determine the right amount to purchase.2
Be Prepared
Since we are unable to predict the future and often life can change in an instant it is essential to plan ahead. It is important to follow these unexpected changes with the evaluation of your life insurance coverage. Such steps will ensure that your family remains financially secure.
1) National Association of Insurance and Financial Advisors (NAIFA) 2004
2) The cost and availability of life insurance depend on such factors as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely there may be surrender charges and income tax implications
Thursday, June 25, 2009
Five Rings Financial
Recently I partnered with Five Rings Financial. I think it's a great move for me and my clients. I can offer my clients more products and great services. Five Rings Financial is an Independent Marketing Organization representing many of the world's largest Financial Services Companies and dedicated to serving the financial needs of individuals, families and businesses from all walks of life. Although a national company in one of the world's most vital industries, our thousands of local independent associates and managers offer hometown value, service and education to each client, providing them the opportunity to achieve one of their most desired goals: financial independence. Every month we offer local Money 101 educational dinners as well as a series for women called Wine, Women, & Wealth. Wine, Women, & Wealth is always held at the Wine Spot in Carlsbad, CA. The Money 101 seminars are held in San Marcos, CA and Torrance, CA. Please follow me on Twitter (www.twitter.com/thewic) or Facebook to see the invitations to these monthly complimentary educational events. I would love to have you attend! I look forward to waking up each day and assisting my clients with their financial needs. As a Financial Representative with Five Rings Financial, I get to assist clients with saving money on their health insurance,life insurance and auto insurance and at the same time assist them with saving for their future. Five Rings Financial, Creating Opportunties, Income, Security & Wealth. KSWZ Insurance Services, I don't sell products, I build relationships.
Friday, June 5, 2009
You Never Out Grow Your Need for Life Insurance
The insurance rating company, A.M. Best & Co, reported that less than half of all American households have any life insurance other than that provided by an employer. Why have so many Americans turned their backs on life insurance? There are several answers to that question.
With all of the media focus on living longer and preparing for retirement, Americans have shifted their concentration toward saving for retirement by putting their money into tax-favored accounts. Life insurance companies have been marketing the investment aspects of policies rather than death benefits in spite of the fact that most consider life insurance a poor investment choice. Class-action lawsuits against insurance companies alleging product misrepresentation have also contributed to life insurance earning a bad reputation.
The chief reason to buy life insurance is the protection it provides through the death benefit. The proceeds your beneficiaries receive can replace the income they lost as a result of your death and provide for future needs, such as paying for a child’s education. Investing in the stock market is not a substitute for life insurance. For one, life insurance guarantees a return for the money you pay in premiums. Even under the best market conditions, you are never guaranteed a return on the money you invest in stocks or mutual funds. In fact, most brokers advise that you invest only money you can afford to lose. Even if you do manage to assemble a stock portfolio that provides a reasonable rate of return, that return must accumulate over time in order to grow large enough to cover your family’s long-term needs. The problem arises if you die before amassing the amount needed. With life insurance, the death benefit is available whenever you die.
The other issue with leaning on a stock portfolio to cover long-term financial needs is that portfolio values never remain constant. As market conditions change, so does the value of your stock portfolio. If the market happens to be in a down cycle when you die, asset values will be reduced at the time your family needs them the most. If they have to sell assets, not only will they fail to net as much money as you would have hoped, they will also have to pay taxes on any capital gains. With life insurance, they can receive death benefits tax-free and with proper planning, they will avoid paying estate taxes on the money as well.
Talk with your insurance agent to determine how much insurance you need to best protect your family’s finances in the event of your death. And never overlook the death benefit value of life insurance.
Monday, March 30, 2009
Universal Life Definition
Life Insurance which combines the low-cost protection of term insurance with a savings component that is invested in a tax-deferred account, the cash value of which may be available for a loan to the policyholder. Universal life was created to provide more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy. Additionally, the inner workings of the investment process are openly displayed to the holder, whereas details of whole life investments tend to be quite scarce. Premiums, which are variable, are broken down by the insurance company into insurance and savings. Therefore, the holder can adjust the proportions of the policy based on external conditions. If the savings are earning a poor return, they can be used to pay the premiums instead of injecting more money. If the holder remains insurable, more of the premium can be applied to insurance, increasing the death benefit. Unlike with whole life, the cash value investments grow at a variable rate that is adjusted monthly. There is usually a minimum rate of return. These changes to the interest scheme allow the holder to take advantage of rising interest rates. The danger is that falling interest rates may cause premiums to increase and even cause the policy to lapse if interest can no longer pay a portion of the insurance costs.
Tuesday, March 17, 2009
Three Things Everyone Should Know About Life Insurance
As any financial advisor worth his or her salt will tell you, if you have loved ones who depend on your income, a life insurance policy is a must-have. If you were to die, an effective life insurance plan will ensure that all your family’s financial needs will be covered—from the monthly mortgage and utility bills to your child’s college education. Without life insurance, your family could find themselves in dire straits if something happened to you.
Unfortunately, this advice often falls on deaf ears. In 2008, 68 million Americans still did not have any life insurance, according to the Life and Health Insurance Foundation for Education. On top of that, most people who do have life insurance don’t have enough coverage to fully support their family.
If you do not own any life insurance or have minimal coverage, here are three things you might want to consider:
1. Everyone needs life insurance.
Many people mistakenly assume they have no need for life insurance because their children are grown and no longer require financial support. What these people don’t realize is that life insurance coverage can be used for much more than supporting their loved ones.
For example, the payout from your life insurance policy could be used to cover your final expenses, including medical bills, estate taxes and funeral expenses. Without life insurance coverage, your family will be expected to foot these bills. Considering that the average funeral costs $10,000 or more, do you want to leave this heavy financial burden on your loved ones’ shoulders?
You can also designate life insurance proceeds to help fund a grandchild’s college education or even donate them to your favorite charitable organization.
2. Three times your income may not be enough.
Some people say the best way to determine the amount of life insurance coverage you need is to simply multiply your annual income by three. However, this amount may not be enough. What if your spouse who is unable to work lives many more years after you die? Three years worth of income will not be nearly enough to support your spouse for another eight, ten or even 20 years.
This is why many professionals say the “three times your income” method is not always a good rule of thumb. Because each family faces a unique set of circumstances and needs, you should consider factors other than annual income. Figuring out the right amount life insurance requires a comprehensive evaluation of your financial goals, debts, investments, lifestyle and habits.
3. You’re never too old to buy life insurance.
Many seniors believe they are too old to worry about life insurance because they no longer have loved ones relying on their income. But once again, a life insurance policy can help cover your final expenses after you die so your family is not left with the bill.
Before you discount life insurance, it’s important to know all the facts. These valuable insurance policies can protect your family’s financial well-being, pay off your final expenses and even fund a loved one’s home purchase or college education.
Of course, whether or not you qualify and how much you will pay for life insurance depends on your age, health and the type of insurance you want to purchase. If you are considering buying life insurance, you may want to meet with a financial advisor or insurance agent, who can help you determine how much and what kind of life insurance you need.
One thing is certain: everyone should consider purchasing life insurance. After all, your family’s happiness could depend on it.
Unfortunately, this advice often falls on deaf ears. In 2008, 68 million Americans still did not have any life insurance, according to the Life and Health Insurance Foundation for Education. On top of that, most people who do have life insurance don’t have enough coverage to fully support their family.
If you do not own any life insurance or have minimal coverage, here are three things you might want to consider:
1. Everyone needs life insurance.
Many people mistakenly assume they have no need for life insurance because their children are grown and no longer require financial support. What these people don’t realize is that life insurance coverage can be used for much more than supporting their loved ones.
For example, the payout from your life insurance policy could be used to cover your final expenses, including medical bills, estate taxes and funeral expenses. Without life insurance coverage, your family will be expected to foot these bills. Considering that the average funeral costs $10,000 or more, do you want to leave this heavy financial burden on your loved ones’ shoulders?
You can also designate life insurance proceeds to help fund a grandchild’s college education or even donate them to your favorite charitable organization.
2. Three times your income may not be enough.
Some people say the best way to determine the amount of life insurance coverage you need is to simply multiply your annual income by three. However, this amount may not be enough. What if your spouse who is unable to work lives many more years after you die? Three years worth of income will not be nearly enough to support your spouse for another eight, ten or even 20 years.
This is why many professionals say the “three times your income” method is not always a good rule of thumb. Because each family faces a unique set of circumstances and needs, you should consider factors other than annual income. Figuring out the right amount life insurance requires a comprehensive evaluation of your financial goals, debts, investments, lifestyle and habits.
3. You’re never too old to buy life insurance.
Many seniors believe they are too old to worry about life insurance because they no longer have loved ones relying on their income. But once again, a life insurance policy can help cover your final expenses after you die so your family is not left with the bill.
Before you discount life insurance, it’s important to know all the facts. These valuable insurance policies can protect your family’s financial well-being, pay off your final expenses and even fund a loved one’s home purchase or college education.
Of course, whether or not you qualify and how much you will pay for life insurance depends on your age, health and the type of insurance you want to purchase. If you are considering buying life insurance, you may want to meet with a financial advisor or insurance agent, who can help you determine how much and what kind of life insurance you need.
One thing is certain: everyone should consider purchasing life insurance. After all, your family’s happiness could depend on it.
Friday, March 13, 2009
Return of Premium Term Life Policies Worth Exploring
To the relief of many consumers, not really satisfied with either of the two types of traditional life insurance, insurance companies have started offering a third option. Called Return of Premium (ROP) Term, this new product combines features of term insurance and permanent insurance. The feature that gets buyers really excited about ROP Term is that at the end of the policy's term, if you're still alive, you get all your premiums back! That's right. Every cent you paid for the policy will be returned to you.
For many people, deciding between the two types of traditional life insurance has been an agonizing choice: Term or Permanent Cash Value? Term or Permanent Cash Value? The question can go round and round in one's head like the hamster on the proverbial exercise wheel.
The premiums are less for Term, but there's no return on the investment unless you die during the 10 or 20 or 30 years that is the policy's term and your survivors collect the death benefit. With today's long life expectancies, it's likely that you probably won't die before the policy expires. You want to protect your dependents, but you may hate the thought of all those premiums paid and nothing to show for them if you live, which is what you reasonably expect to do.
On the other hand, you can build cash value with the savings component of a Permanent Cash Value policy -- whether whole, universal, or variable. Plus the guaranteed renewable feature is attractive, since you don't know what your health may be years from now. But Permanent Cash Value insurance typically costs two or three times as much in premiums compared to premiums for the same death benefit with Term. Should you spend that much more on life insurance for the cash value and permanent features? Can you afford to spend that much more? It's a hard call for many.
What a relief to have this third choice of ROP Term, an elegant solution that splits the problem up the middle. It's like Term Life Insurance in that the policy is effective, as long as you pay your premiums, for a specified period of time, usually up to 30 years. But it adds a cash value feature with the guarantee from the insurer: If you pay your premiums and you live, we'll give you your money back.
On a typical 20-year Level Term Life Insurance policy the ROP feature could cost from 25 to 50 percent more a year than a standard Term policy of the same period. The additional premium, which the insurer invests, provides the cash for the returned premiums. It's like buying traditional term and investing an extra sum that will grow at a steady pace without risk. It's not "free" insurance, but to the majority of people who -- if they buy the coverage while still relatively young and consequently will most likely still be still living at the end of the policy's term -- it sure feels like it is.
The biggest determinant of the extra charge for a Return of Premium feature is the length of time until you get the premiums back. A 30-year policy is less costly than a shorter one because there is more time for the additional funds to grow. A 35-year-old male in good health might pay $970 annually for a 30-year, $500,000 Return of Premium policy. That's $295, or 44 percent, more than regular term from the same insurer. A 20-year policy might cost $1,175, or more than three times the cost of regular term. A 15-year policy, at $1,645, is almost six times the cost of traditional term.
Is the investment component of the ROP Term policy a good investment? By counting the extra premiums paid as the amount invested and the overall premiums paid back as the investment payoff, these policies pay annual returns of 2.5 to 9 percent--the longer the policy's life and the smaller the extra premium, the better the return. And for many people, there's an additional return in tax savings. If you invested the extra premium yourself, the net gain could be taxable. Putting that amount into an insurance policy makes the total payback a refund of the premiums you paid, and thus not taxable.
You reap the big benefits from ROP Term if you keep the policy for the full term. However, you can surrender the policy during the term and get back a portion of the premium. Premiums are returned on a sliding scale that builds up to 100 percent at the end of the term. So if you take out a 20-year policy and cancel at year 15, you can expect to get back about 50 percent of your money. It's unlikely you'll get any return of premium if you surrender the policy within the first five years. That's because insurers only start making a profit on your policy if you stick around more than five years.
What if you bought a car, made the car payments, and then, when you'd finished paying for the car, you got all your car payments back? Who doesn't think that's a pretty swell idea? The new ROP Term Policy takes features from both Term and Permanent Life Insurance and rolls them into one very attractive alternative - just like getting all your car payments back when you finish paying for the car.
For many people, deciding between the two types of traditional life insurance has been an agonizing choice: Term or Permanent Cash Value? Term or Permanent Cash Value? The question can go round and round in one's head like the hamster on the proverbial exercise wheel.
The premiums are less for Term, but there's no return on the investment unless you die during the 10 or 20 or 30 years that is the policy's term and your survivors collect the death benefit. With today's long life expectancies, it's likely that you probably won't die before the policy expires. You want to protect your dependents, but you may hate the thought of all those premiums paid and nothing to show for them if you live, which is what you reasonably expect to do.
On the other hand, you can build cash value with the savings component of a Permanent Cash Value policy -- whether whole, universal, or variable. Plus the guaranteed renewable feature is attractive, since you don't know what your health may be years from now. But Permanent Cash Value insurance typically costs two or three times as much in premiums compared to premiums for the same death benefit with Term. Should you spend that much more on life insurance for the cash value and permanent features? Can you afford to spend that much more? It's a hard call for many.
What a relief to have this third choice of ROP Term, an elegant solution that splits the problem up the middle. It's like Term Life Insurance in that the policy is effective, as long as you pay your premiums, for a specified period of time, usually up to 30 years. But it adds a cash value feature with the guarantee from the insurer: If you pay your premiums and you live, we'll give you your money back.
On a typical 20-year Level Term Life Insurance policy the ROP feature could cost from 25 to 50 percent more a year than a standard Term policy of the same period. The additional premium, which the insurer invests, provides the cash for the returned premiums. It's like buying traditional term and investing an extra sum that will grow at a steady pace without risk. It's not "free" insurance, but to the majority of people who -- if they buy the coverage while still relatively young and consequently will most likely still be still living at the end of the policy's term -- it sure feels like it is.
The biggest determinant of the extra charge for a Return of Premium feature is the length of time until you get the premiums back. A 30-year policy is less costly than a shorter one because there is more time for the additional funds to grow. A 35-year-old male in good health might pay $970 annually for a 30-year, $500,000 Return of Premium policy. That's $295, or 44 percent, more than regular term from the same insurer. A 20-year policy might cost $1,175, or more than three times the cost of regular term. A 15-year policy, at $1,645, is almost six times the cost of traditional term.
Is the investment component of the ROP Term policy a good investment? By counting the extra premiums paid as the amount invested and the overall premiums paid back as the investment payoff, these policies pay annual returns of 2.5 to 9 percent--the longer the policy's life and the smaller the extra premium, the better the return. And for many people, there's an additional return in tax savings. If you invested the extra premium yourself, the net gain could be taxable. Putting that amount into an insurance policy makes the total payback a refund of the premiums you paid, and thus not taxable.
You reap the big benefits from ROP Term if you keep the policy for the full term. However, you can surrender the policy during the term and get back a portion of the premium. Premiums are returned on a sliding scale that builds up to 100 percent at the end of the term. So if you take out a 20-year policy and cancel at year 15, you can expect to get back about 50 percent of your money. It's unlikely you'll get any return of premium if you surrender the policy within the first five years. That's because insurers only start making a profit on your policy if you stick around more than five years.
What if you bought a car, made the car payments, and then, when you'd finished paying for the car, you got all your car payments back? Who doesn't think that's a pretty swell idea? The new ROP Term Policy takes features from both Term and Permanent Life Insurance and rolls them into one very attractive alternative - just like getting all your car payments back when you finish paying for the car.
Wednesday, March 11, 2009
Life Insurance As An Asset
Life Insurance as an Asset
Life Insurance is a very important and effective part of your overall financial plan. It allows you to leverage your assets and provides the opportunity to transfer wealth to your beneficiaries "while reducing your concerns as to the performance of your other assets."
The current market conditions provide an excellent opportunity to buy life insurance. Many of you have suffered losses in the recent market fluctuations. It will take years for you to recoup what you have lost. Therefore, why not "insure" those losses? We can do this using Life Insurance. Regardless, I can give you a way to make it through this temporary drop and not affect what you had hoped to have for the benefit of your families.
Allow me to illustrate how Life Insurance can be used as an asset and protector. I provide a spreadsheet for each of you showing what can be done on your behalf. You need an advisor who can help you feel more comfortable about your current financial situation. I can be that advisor!
To get more info. or a customized spreadsheet, call or email today!!
Life Insurance is a very important and effective part of your overall financial plan. It allows you to leverage your assets and provides the opportunity to transfer wealth to your beneficiaries "while reducing your concerns as to the performance of your other assets."
The current market conditions provide an excellent opportunity to buy life insurance. Many of you have suffered losses in the recent market fluctuations. It will take years for you to recoup what you have lost. Therefore, why not "insure" those losses? We can do this using Life Insurance. Regardless, I can give you a way to make it through this temporary drop and not affect what you had hoped to have for the benefit of your families.
Allow me to illustrate how Life Insurance can be used as an asset and protector. I provide a spreadsheet for each of you showing what can be done on your behalf. You need an advisor who can help you feel more comfortable about your current financial situation. I can be that advisor!
To get more info. or a customized spreadsheet, call or email today!!
Wednesday, March 4, 2009
These tough times in the market....
Hello all. I have been assisting a lot of people lately who lost money in the market. Permanent Life insurance, not term, and fixed annuities are the only tax favored financial vehicles out there that didn't lose money in the last few years and won't in the future. They are the only ones with lifetime guarantees right now as well. If you hear of someone in that situation please let me know. I would be happy to give them so free info. I don't know if you know too, I offer my clients, friends, as well as any referrals, free annual financial reviews. Thank you all for your support. Have a nice day.
Thursday, February 26, 2009
5 Common Mistakes People Make When Buying Life Insurance
When most consumers think about buying life insurance these days, they immediately think term insurance is the best option. This is not always the case.
Term life insurance, which covers you for a specified amount of time, such as 10, 20 or 30 years, is almost always cheaper, at least in the short-term, than other forms of permanent insurance. The reason: Term insurance only pays out when you die (that is if you die while the policy is in force), while permanent insurance offers coverage for your entire life provided premiums are paid when due and may also include a cash value component.
As with every important purchase, it's crucial that you understand just what you're buying when you shop for term life insurance. Even an inexpensive policy, if not designed to meet your particular financial needs, can result in money down the drain.
The following are five of the most common mistakes consumers make when buying life insurance.
1. Selecting term insurance solely because it's cheap. Shopping for life insurance by just comparing premiums is asking for trouble. You should compare company ratings to determine financial strength and policy features, such as convertibility options. While the policy's premium is certainly a factor, ensuring that your policy matches your financial goals is more important.
2. Not understanding that term insurance is temporary. That's why it's called "term" insurance -- because you buy it for a set period of time, most commonly 20 years. This is fine for a temporary need, such as insuring yourself until your mortgage is paid off or funding your children's college expenses in the event of your premature death.
A 20-year level-term insurance policy you bought when you were 30 would expire when you're only 50. At that point, you still might need to carry insurance, but your age and health conditions might make it impossible or very expensive to do so. At least, if your policy has a convertibility option you can get coverage, it just might be down right unaffordable.
3. Buying from a less-than-stable insurance company. Don't be afraid to ask about an insurance company's ratings. You can also look for an insurer's Standard & Poor's, Moody's or A.M. Best ratings on the Internet.
There are many insurance carriers with high financial ratings (A+ or better) so you shouldn't have to buy insurance from a lower rated company. But, keep in mind that ratings can and will change, so ratings alone shouldn't be your only consideration.
4. Buying insurance coverage based on a set formula. You may have heard that a good rule of thumb is to buy life insurance coverage equal to 10 times your annual salary or 10 times your beneficiary's annual financial need. The idea is that if your surviving beneficiary invests the life insurance proceeds in the stock market (getting an average 10 percent annual return), they'll have a steady income stream and never need to tap the investment principal.
While this formula isn't a bad place to start, everyone has different needs, so don't assume that 10 times your salary is what you need to carry in life insurance. The best advice here is to sit down with a knowledgeable agent that will take the time to learn about your needs.
5. Failing to regularly review your policy. Is your former spouse still the beneficiary of your life insurance policy? Did you buy term insurance to cover you while you pay off your mortgage? If you refinanced during the latest rate drop and restarted the clock on your loan, you might also need to update your insurance term. Life definitely has a way of throwing changes your way. Just make sure your life insurance changes along with you.
Bottom line - don't forget to do your homework. Whatever your life insurance needs may be, we can help you investigate the best options for you to help protect your family's financial future.
Term life insurance, which covers you for a specified amount of time, such as 10, 20 or 30 years, is almost always cheaper, at least in the short-term, than other forms of permanent insurance. The reason: Term insurance only pays out when you die (that is if you die while the policy is in force), while permanent insurance offers coverage for your entire life provided premiums are paid when due and may also include a cash value component.
As with every important purchase, it's crucial that you understand just what you're buying when you shop for term life insurance. Even an inexpensive policy, if not designed to meet your particular financial needs, can result in money down the drain.
The following are five of the most common mistakes consumers make when buying life insurance.
1. Selecting term insurance solely because it's cheap. Shopping for life insurance by just comparing premiums is asking for trouble. You should compare company ratings to determine financial strength and policy features, such as convertibility options. While the policy's premium is certainly a factor, ensuring that your policy matches your financial goals is more important.
2. Not understanding that term insurance is temporary. That's why it's called "term" insurance -- because you buy it for a set period of time, most commonly 20 years. This is fine for a temporary need, such as insuring yourself until your mortgage is paid off or funding your children's college expenses in the event of your premature death.
A 20-year level-term insurance policy you bought when you were 30 would expire when you're only 50. At that point, you still might need to carry insurance, but your age and health conditions might make it impossible or very expensive to do so. At least, if your policy has a convertibility option you can get coverage, it just might be down right unaffordable.
3. Buying from a less-than-stable insurance company. Don't be afraid to ask about an insurance company's ratings. You can also look for an insurer's Standard & Poor's, Moody's or A.M. Best ratings on the Internet.
There are many insurance carriers with high financial ratings (A+ or better) so you shouldn't have to buy insurance from a lower rated company. But, keep in mind that ratings can and will change, so ratings alone shouldn't be your only consideration.
4. Buying insurance coverage based on a set formula. You may have heard that a good rule of thumb is to buy life insurance coverage equal to 10 times your annual salary or 10 times your beneficiary's annual financial need. The idea is that if your surviving beneficiary invests the life insurance proceeds in the stock market (getting an average 10 percent annual return), they'll have a steady income stream and never need to tap the investment principal.
While this formula isn't a bad place to start, everyone has different needs, so don't assume that 10 times your salary is what you need to carry in life insurance. The best advice here is to sit down with a knowledgeable agent that will take the time to learn about your needs.
5. Failing to regularly review your policy. Is your former spouse still the beneficiary of your life insurance policy? Did you buy term insurance to cover you while you pay off your mortgage? If you refinanced during the latest rate drop and restarted the clock on your loan, you might also need to update your insurance term. Life definitely has a way of throwing changes your way. Just make sure your life insurance changes along with you.
Bottom line - don't forget to do your homework. Whatever your life insurance needs may be, we can help you investigate the best options for you to help protect your family's financial future.
How Much Life Insurance Do I Need?
How much life insurance you need depends on what you need the insurance to do. As a general rule, the more dependents you have and the longer their dependency is expected to last, the more life insurance you need. But even people with no dependents need some life insurance. Let's look at several typical situations.
People with minor children: The younger your children are, the longer they will depend on your income. Therefore, more insurance will be needed to replace the income you would have provided, should you die while they are still young. If both parents earn income, then both should have life insurance, with insurance amounts proportionate to the amounts they contribute to the family's income. If one parent stays at home with the children, there should be enough insurance to cover the cost of purchasing services, such as childcare and housekeeping, provided by this parent. Should the family budget be insufficient to purchase policies to cover both parents, most insurance experts recommend first insuring the life of the parent who earns more.
Couples with no children or other dependents: These individuals have no need for substantial life insurance if each could live comfortably without the other's income. Each should have enough life insurance to provide for burial expenses, to pay off their outstanding debts including any uninsured medical expenses, and perhaps to leave some money to charities, institutions, or valued family members and friends. If, however, you have a spouse or domestic partner who would experience hardship without the income you provide, you may need insurance to help him or her pay the bills once you are gone.
Single People Without Dependents: This group needs life insurance for burial expenses—which can easily reach $10,000—and for paying off their outstanding debts. Some may want to use life insurance as well to leave contributions to favorite charities or institutions. A young person may also want to buy life insurance so as to lock in a lower premium rate while he or she is healthy.
People who have dependents other than minor children: Some people have parents or family members with disabilities who count on their income. Their life insurance planning should be similar to that of parents with minor children—that is, based upon careful calculation of the amount of income their loved ones would need to continue living comfortably.
As a general guide to how much life insurance to buy, there is an old rule that suggests buying five, six, or seven times your annual salary. But a much more reliable estimate can be made by calculating actual living expenses and the shortfall that would occur should the family no longer have your income.
Here are some of the calculations to include: What is the amount of annual income that your survivors would need to live comfortably? This number includes mortgage or rent, insurance, real estate taxes, home repairs, improvements, furniture, appliances, and all other items bought for the home, as well as utilities and home and property maintenance. It also includes the annual cost of food and sundries, clothing, car payments and other transportation expenses, child and other dependent care, medical care, recreation and travel, and gifts.
Once you have these annual costs calculated, subtract from that figure other sources of income that would be available in the event of your death. For many, this includes Social Security survivor's benefits. You can obtain an accurate estimate by contacting the Social Security Administration. Since the actual amount would depend on your age at death, your earnings and the ages of your children, you may, instead, use the following rough estimates as a guide: $4,000 per year if you have one child under 16, or $5,000 for two or more children under 16. Other sources of income include earnings of your spouse or other household members, pensions, investment income, etc.
Then determine the shortfall between annual expenses and income from other sources. Ideally, the insurance benefit will generate after-tax annual investment proceeds sufficient to cover the annual income shortfall without touching the principle. This can be determined by dividing the shortfall by 4%, 5%, or 6%, depending on how conservative you want to be. It is reasonable to expect an annual return of 6%, but more conservative to account for inflation and interest rate risk by using one of the lower numbers.
Next, you need to determine one-time expenses that will be incurred upon your death. These include funeral costs, any likely unpaid medical expenses, costs of estate administration and estate taxes, debts that your survivors may need to pay off at the time of your death, future education expenses for each child, and any other likely expenses, such as the cost for a surviving parent to go back to school to increase his or her earning power. Add this amount to the amount of insurance proceeds needed that you already calculated to get an estimate of the total death benefit needed.
It's impossible in an article of this length to go through in detail all the calculations that can be necessary to cover each individual's situation. The above is only a general guideline as to the type of analysis that will help most people get an accurate reading on the question of how much life insurance to buy. Your insurance agent can help you refine this analysis to more accurately reflect your own situation.
People with minor children: The younger your children are, the longer they will depend on your income. Therefore, more insurance will be needed to replace the income you would have provided, should you die while they are still young. If both parents earn income, then both should have life insurance, with insurance amounts proportionate to the amounts they contribute to the family's income. If one parent stays at home with the children, there should be enough insurance to cover the cost of purchasing services, such as childcare and housekeeping, provided by this parent. Should the family budget be insufficient to purchase policies to cover both parents, most insurance experts recommend first insuring the life of the parent who earns more.
Couples with no children or other dependents: These individuals have no need for substantial life insurance if each could live comfortably without the other's income. Each should have enough life insurance to provide for burial expenses, to pay off their outstanding debts including any uninsured medical expenses, and perhaps to leave some money to charities, institutions, or valued family members and friends. If, however, you have a spouse or domestic partner who would experience hardship without the income you provide, you may need insurance to help him or her pay the bills once you are gone.
Single People Without Dependents: This group needs life insurance for burial expenses—which can easily reach $10,000—and for paying off their outstanding debts. Some may want to use life insurance as well to leave contributions to favorite charities or institutions. A young person may also want to buy life insurance so as to lock in a lower premium rate while he or she is healthy.
People who have dependents other than minor children: Some people have parents or family members with disabilities who count on their income. Their life insurance planning should be similar to that of parents with minor children—that is, based upon careful calculation of the amount of income their loved ones would need to continue living comfortably.
As a general guide to how much life insurance to buy, there is an old rule that suggests buying five, six, or seven times your annual salary. But a much more reliable estimate can be made by calculating actual living expenses and the shortfall that would occur should the family no longer have your income.
Here are some of the calculations to include: What is the amount of annual income that your survivors would need to live comfortably? This number includes mortgage or rent, insurance, real estate taxes, home repairs, improvements, furniture, appliances, and all other items bought for the home, as well as utilities and home and property maintenance. It also includes the annual cost of food and sundries, clothing, car payments and other transportation expenses, child and other dependent care, medical care, recreation and travel, and gifts.
Once you have these annual costs calculated, subtract from that figure other sources of income that would be available in the event of your death. For many, this includes Social Security survivor's benefits. You can obtain an accurate estimate by contacting the Social Security Administration. Since the actual amount would depend on your age at death, your earnings and the ages of your children, you may, instead, use the following rough estimates as a guide: $4,000 per year if you have one child under 16, or $5,000 for two or more children under 16. Other sources of income include earnings of your spouse or other household members, pensions, investment income, etc.
Then determine the shortfall between annual expenses and income from other sources. Ideally, the insurance benefit will generate after-tax annual investment proceeds sufficient to cover the annual income shortfall without touching the principle. This can be determined by dividing the shortfall by 4%, 5%, or 6%, depending on how conservative you want to be. It is reasonable to expect an annual return of 6%, but more conservative to account for inflation and interest rate risk by using one of the lower numbers.
Next, you need to determine one-time expenses that will be incurred upon your death. These include funeral costs, any likely unpaid medical expenses, costs of estate administration and estate taxes, debts that your survivors may need to pay off at the time of your death, future education expenses for each child, and any other likely expenses, such as the cost for a surviving parent to go back to school to increase his or her earning power. Add this amount to the amount of insurance proceeds needed that you already calculated to get an estimate of the total death benefit needed.
It's impossible in an article of this length to go through in detail all the calculations that can be necessary to cover each individual's situation. The above is only a general guideline as to the type of analysis that will help most people get an accurate reading on the question of how much life insurance to buy. Your insurance agent can help you refine this analysis to more accurately reflect your own situation.
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