When it comes to life insurance planning, our clients want real answers. They ask questions like, “How much insurance do I need? Is it affordable? How long should my policy last?”
These are important questions! We answer them below using practical formulas and straightforward talk. Once you have a good foundation, purchasing life insurance for yourself and your family is a much easier task.
Covering Your Most Important Liabilities
For the majority of consumers, there are a few key things to consider when calculating how much life insurance to buy. The top three items most people need to account for are:
Lost Income
Debt Obligations
Education Expenses
Let’s dive deeper into the three liabilities above.
Income Replacement: When a primary breadwinner passes away unexpectedly, it turns an uninsured (or underinsured) household upside down. Families of all ages need to consider lost wages – and then factor in a number of years worth of replacement.
For some that might be five years of wages, but for others it will be longer. A good rule of thumb is seven to ten years worth of lost income. Insuring for this amount provides a sizeable nest egg allowing your family to rebuild and maintain their lifestyle. Those with several young children and a stay-at-home spouse should consider larger amounts.
Covering Debts: Whether you’re single or married with a family, it’s important to account for any debt you’ve accrued. Those with a spouse and/or children do not want to leave large obligations behind. This might include school debt, a mortgage, credit card or business liabilities.
A suitable life insurance policy wipes the slate clean. While not all debt transfers at death, several types do – so accounting for large amounts like home loans are wise.
The Cost of Education: This debt applies to families with children who are college bound. Higher education costs are astronomical. Providing a lump sum that covers tuition costs for your children eases a significant financial strain for families. It may not need to cover the entire amount, but a good policy provides enough benefits for those who will need them. Some families may also want to account for pre-college private schools their children currently attend.
Of course, there are several other miscellaneous factors when it comes to life insurance planning, but accounting for the three is a primary objective. Others might consider extended family, charity, estate planning taxes, special needs children or other personal items. Adding the most relevant items together gives most families better insight into their number.
What Type Of Life Insurance Do I Need?
Most of our clients choose and benefit from term life insurance. It’s the least expensive policy type and it can be tailored to meet your needs. It’s easiest to think of a term policy like a rental. You purchase (or rent) it with an expiration date.
The idea is your life insurance needs decrease over the years. Children grow older, debt is paid down or eliminated, and your savings and investments increase. Your obligations will likely be much less in the future than they are now. A term policy accounts for time needed to reduce most large liabilities.
How Long Do Most Policies Last?
The most common term life insurance policies last 30 years. This usually affords enough time for the insured(s) to become financially established. Other policies might last a shorter period of time – say 20 years. Typically, you’re thinking about an age when children are out of college, your home is paid off and your assets have grown.
What If My Insurance Needs Change In The Future?
If you have less need for life insurance later, you can reduce your death benefit and lower your costs. Otherwise you can cancel your policy early if it’s no longer needed. There are zero provisions forcing you to keep your policy and pay premiums for the entire term length.
And there’s always the chance you might need more life insurance – or for your policy to last longer. If you purchased term insurance, then know you can convert some policies to a whole life policy at maturity. This is usually expensive, but if you don’t qualify for new insurance, it might be your best option.
Otherwise, you can look at purchasing a new term, whole or universal life insurance policy. Depending on your needs you may want to consider permanent life insurance from onset – or a mix of permanent and term life. This strategy works well for those who have insurable interests with an indefinite timeline. We’ll help your understand your best options.
What About Life Insurance From Work?
Most large employers offer some amount of life insurance or accidental death coverage.
While you can count on these policies to some extent, it’s important to remember that group policies are smaller and they do not follow your from job to job.
Many consumers are freelancing now. You may seek different opportunities in the future. It’s important to lock-in a plan while you are young, healthy and insurable. You want one that’s always there for you no matter your employment situation.
And you want to make sure you have enough coverage to account for the liabilities mentioned above. Simply put, most people underestimate how much life insurance to carry. And some overly rely on work benefits that are subject to change.
Calculating Your Coverage Number
Assuming no special circumstances, you can calculate how much life insurance you need using the factors above.
For example, let’s say you make $100K a year, have $350K in total debt between mortgage and educational liabilities and you have two children who will likely attend college.
We could multiply $100K by five, add the $350K and then add another $300K for college tuition. That would put your number at $1.15 million. You could subtract other savings & investments while also factoring in a spouse’s salary. That would equate to around a $1 million dollar death benefit for 20-30 yr term. While that might seem high, it is a common number we see.
By clicking on the “View Life Quotes Now” links on this page, you can see how much that might cost. Your age, gender and health will determine your overall rate. However, it’s not unusual to see a $1 mil 30 yr term policy cost well under a $1,000 a year.
Contact Us To Discuss Your Life Insurance Needs
We get it – purchasing life insurance isn’t always easy. You’ll need to account for several variables over a somewhat undefined period of time.
Our independent life insurance agency will guide you through the process. From calculating a realistic number while also factoring in your overall health, we can arrive at a suitable solution to fit your needs and budget. Contact us today!
Millennials and the baby boomers are two generations who currently make up the majority of the population in the United States. Understanding how each generation thinks and what they want helps determine more about their life insurance needs.
Let’s explore the perceptions about each generation. See if you fit into either. Then let’s consider the critical role of life insurance for seniors, young adults and everyone in between.
Who Are Millennials?
Some millennials are referred to as Generation Y. They follow generation X (who are part of the generation referred to as baby boomers). The people in of this generation are those who were born between the years 1980 and early 2000. Depending on their location, millennials are often highly dependent on technology. They are tech-savvy and familiar with all types of technology in communications, media and digital. And millennials want products and service quickly, much like the way technology operates.
That’s why we introduced online life insurance quoting. By clicking on any of the green “View Life Quotes Now” buttons on our site, anyone can quote life plans, submit applications and enroll right away. Oftentimes with very little underwriting. Whether it’s permanent, universal or term life, we have you covered.
Who Are Baby Boomers?
People who belong to the baby boomer generation were born between the years 1940 and 1964. Most of the people in this generation were born after World War II and the Great Depression. This generation grew up with hopeful expectations that the world might get better with time. In the US, this generation controlled 65% of the nation’s total disposable income by the end of 2021.
We, of course, serve this group too. They may be in search of life insurance for estate planning purposes – or smaller funeral expense policies. While these can all be quoted online as well, we’re happy to help the more traditional way. If you’d rather speak with someone while exploring your options, then contact us today. This way you’ll be sure you’re finding the most suitable coverage for your needs and budget.
Life Insurance For The Generations
While baby boomers control 65% of the nation’s total disposable income, that does not necessarily make them the most powerful generation. Recent research studies have indicated that by the year 2025, millennials are going to be controlling about 75% of the entire global market.
Both generations are earning income, accruing assets, and caring for their loved ones. As a result, they want to protect these assets and preserve wealth for their families and business partners. These people are parents and integral members of companies. Their death could be financially devastating to those left behind.
Life insurance helps ease financial stress. There are also life insurance policies that build cash value for future emergencies. In many ways, life policies can be used while you’re living. Whether it’s to borrow against for a big purchase – or an accelerated death benefit to pay for a chronic illness – life insurance can do it all.
Millennials and Life Insurance
The best way millennials can prepare for a great future is to shop for life insurance while they are still young and just starting out on a chosen career. Many millennials have student loans or business startup costs to account for. Shopping for insurance at this time yields many benefits, such as:
You lock-in lower premiums. If you are young, it is likely you do not have health issues. This drastically reduces your life insurance premiums.
You have eliminated the worries about going without. You’ll know your loved ones and/or business interests are well protected.
Baby Boomers and Life Insurance
There is no doubt that baby boomers have a lot of responsibility and many people depend on them. For boomers, life insurance is a necessity. Having a good policy will help maintain the family’s standard of living in the event of injuries or death. Life insurance can also cover the increasing costs for funerals, taxes, mortgages, and other expenses.
Getting life insurance is a necessity that transcends generations. While buying insurance in your youth has advantages, it is never too late to get a good life insurance policy to protect the people you care about most.
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Now that you are ready to retire, it means more free time – and sometimes, less income. And with a reduced income, there are thoughts of ways to save money. After all, you also want more discretionary income to enjoy your free time. Is ending your life insurance policy – or never investing in one at all – the solution? Find out why many people decide to carry life insurance in retirement and well into their golden years.
Retirees With an Income
Some retirees stop working altogether. Others might have a limited or a small pension, which means finding part-time or full-time employment in another field. In most instances, seniors work fewer hours and find jobs with fewer demands. But working seniors usually need an income. And sometimes others depend on the money they earn, including spouses, children, and grandchildren. In this instance, it is prudent to have a life insurance policy to continue to supplement that income when you are gone.
Leaving a Secure Legacy Behind
After decades of hard work, you are comfortable enough kick back during your older years. But you still might not have enough to leave a legacy behind for your loved ones. Saving might be needed for basic living expenses and funeral expenses in the event of your death. And you want to leave something extra for the people you care about.
One of the best ways to do it in investing in a life insurance policy. In most cases, life policies pay out tax-free to your beneficiaries. And you can establish a single premium life insurance policy – or one that requires a set number of known premiums. This way you know exactly what your cost will be.
Paying for Funeral Expenses & Burial Costs
Perhaps nobody continues to depend on you for income. Your spouse might be deceased, and your children are independent. Or you might be on your own. Either way, there will be expenses for your funeral. If you have certain religious beliefs or personal preferences, you might want specific arrangements made for your funeral.
A funeral expense life insurance policy can pay for them to ensure your final wishes are met. Most of our clients think a burial policy is the smart way to go. Instead of a pre-paid plan with a company that might be out of business in the future, you can be in control of the proceeds.
Taking Care of Children Later in Life
People who had children later in life need to consider their well-being and future. Even if your children are in their late teens, there will be expenses for college, transportation, and weddings. If you pass prematurely, these costs could become overwhelming as they need to funds to start their journey forward. You can help take care of them well into the future by continuing to carry life insurance.
This might be done with a shorter term life policy – or a universal life plan. These may expire before they are ever needed, but you know your financial bases are covered if the unexpected occurs.
Family Members With Special Needs
Anyone who takes care of a child, spouse or family member with special needs recognizes there are ongoing expenses for care and treatment. And if any complications arise, these costs can add up quickly. Having life insurance helps take care of a special needs family member long after you can’t. Life insurance gives them the quality of life they deserve.
Owner of a Small Business
Many retirees continue to own all or part of a small business. Some are silent partners while others continue to provide their ongoing expertise in the background. If business partners still rely on your specialized skills and knowledge, it is essential to ensure operations continue as usual after your death. Investing in a business continuation life insurance policy (or key man coverage) helps your successors move forward with less interruption.
Consult with our independent agency to find out whether you need to pay for life insurance in retirement. You might find the expense is necessary to protect the interests of the people you care about most.
Our Life Insurance Brokerage
We are an independent life insurance broker in Columbus, Ohio. Contact us to discuss your options for Medicare insurance and life insurance planning today.
There are so many insurance options. How do you know what the differences are and determine which is right for you? The team at Hyers & Associates would like to end the confusion and help walk you through what the differences are between these two types of life insurance.
The major difference between whole life insurance and term insurance has to do with whether you want to accrue cash value in your life insurance policy. Whole life insurance will accrue a cash value throughout the life of your policy, which will be paid to your beneficiaries when you pass away but can also be used by you while the policy is in force. Term insurance is paid to your beneficiaries for the stated value only at the time of your death if the policy is in effect at the time of your passing.
But Which One Should I Choose?
There is no simple answer to which option is right for you. As you go through life things change, and as those changes occur what you consider ‘the best option’ may change as well. The typical variables that will affect your decision include your age, marital status, income, and your personal preferences as well.
Also, taking a look at your financial goals will help to define which option is best for you. As you age your personal financial status changes and your goals will change. Some of the financial goals and objectives to consider are:
Your Personal Financial Goals
Your Financial Security
Building your Financial Assets
Your Beneficiaries’ Financial Goals
Leaving a Legacy
As you can see there is a lot to think about, so let’s sort through those variables.
The Advantages of Youth
As we get older we like to reflect on the joys of being younger. We also tend to forget we are just beginning careers and are at the lower end of the pay scale. You’re healthy and may be single or newly married and possibly have a young family. In those instances, it may make sense to have term insurance which will have lower premium costs, help your family, and cover your burial expenses if something should happen to you.
However, if you can afford a slightly higher premium with whole life insurance, your rates are lower now as you are generally healthier. It can also be the opportunity to start building cash value in a policy for financial security later in life. As the policy ages, its value increases and its cash value can become a resource for you or your family needs.
The Advantages of Getting Older
As we get older the direction of our life becomes clearer, and our objectives are clearer, and frequently our income is higher. We are also getting older and more likely to develop health issues. Term insurance may make sense as an economical way to make sure your spouse and family will be taken care of if something should happen to you. You may also start to think in terms of a whole life insurance policy being affordable so you can leave a legacy for the people you love and care about.
As we grow older, it’s also a time to think about wealth transfer strategies. Few assets pass to heirs as efficiently as life insurance policies. Many of our clients inquire about single premium life insurance and fixed pay policies that guarantee a death benefit to age 120. The fact that these plans pass tax free make them very attractive. And several policies also offer an Accelerated Death Benefit as well. This means you, the insured and owner, can access the death benefit while you are living! This is a wonderful feature if you need funds to cover the costs of a chronic illness.
Let Us Help You Sort Through Your Options
The team at Hyers & Associates knows the ins and outs of whole life and term insurance. Insurance is what we specialize in, and we work on it every day. We would like to help you sort through where you are today, where you want to be in 10 years, show you what options are available, what’s affordable, and help you meet your financial goals.
We can answer any questions you might have, so give us a call today and let us help you sort through your options and make the best decision that’s right for you.
Could your loved ones survive comfortably without your income? Nobody wants to plan for death, but it matters. The people you care about could be left upset and financially stressed. Choosing the right insurance makes a difference in the quality of their lives. And it also offers peace of mind for you and your family today. Discover the benefits of investing in single premium life insurance.
Basics About Single Premium Life Insurance
People purchase single premium life insurance to create an estate. And this money can be used for survivors to pay bills or as a donation to a favorite charity. With single premium life, money is paid into the policy for a guaranteed death benefit until you pass away. There are various investment options and withdrawal rules, based on the type of policy you choose.
Building a Death Benefit
The size of the death benefit paid out when you die depends on specific factors, such as your age, your health, and how much was paid into the policy. Most of the time, these policies are paid in one lump sum, but in other cases they can be purchased with fixed premiums over a predetermined number of years. This can be done in two years or for much longer. The nice thing is that the premiums never increase and are set at policy issue.
The death benefit with most policies is guaranteed after the policy has been approved and the first premium has been made – whether it be a lump sum or made with payments over time. Most policies will guarantee the death benefit up to age 120 so there is little worry the policy will lapse. (Some policies do expire before age 120, so be sure to let you agent know what you’re looking for.)
And some policies offer different investment options that allow for future growth. Your death benefit is always guaranteed, but if interest rates increase or certain indexes perform well, then the death benefit and cash value can grow over time. You or your heirs can end up with more than what was promised.
Single Premium Life Insurance and Long-Term Care
While single premium life insurance is meant to take care of loved ones when you die, there are times the funds can be used when you are alive. If you require long-term care, funds can be drawn from the policy and accessed tax-free in some cases. And the remaining funds are usually income tax-free for your dependents after you die.
Having these funds available during your life can protect your assets if you require long-term care. Many policies offer Accelerated Death Benefit riders. Should the owner by chronically ill, then a certain percentage of the policy will pay out each year to cover health related expenses. This is a great feature for those who are on the fence about long term care, but also interested in leaving a legacy for their families.
Of course, another option is to invest in a separate long-term care policy. Having a tax-qualified long term care policy can ensure the full death benefit from your single premium life insurance will be paid to your beneficiaries after you die. If needed, the two separate policies can work in tandem with one another as well.
Consider Terminal Illness
Some single premium life insurance plans let you gain access to a portion of the money if you are diagnosed with a terminal illness. Ask your insurance agent about these plans. A terminal illness means your life expectancy is 12 months or less. Having the ability to cash out some of these funds can make the rest of your life, and the lives of loved ones caring for you, a lot easier. Most insurers will allow large portions of the policy to be withdrawn in such circumstances.
Three Basic Types of Investments
There are three basic types of accounts when you choose single premium life insurance. In order of least to most risky, they are whole life, indexed life and variable life. Whole life offers a fixed interest rate, indexed policies safely index into the markets while variable life invests in stocks, bonds and mutual funds. One size does not fit all. Your risk tolerance will help you decide which one is right for you.
Think about market changes, your other assets, and how the cash value of the policy will be used. A fixed interest rate provides a higher level of stability but a variable rate can result in greater gains, depending on the market. So long as the death benefit is guaranteed, it’s usually okay to take a little more risk if you don’t plan on accessing the cash value.
Other Facts to Know
Single premium life insurance is tax-deferred. Plus, beneficiaries can inherit the proceeds without paying taxes or dealing with probate. The funds are available immediately for their convenience. To purchase this insurance, you may have to pass underwriting and a health exam. And frequently, there is minimum investment involved, such as $5,000. These considerations have an impact on whether single premium life insurance is accessible for certain people.
Consider your options carefully before making a final decision. Talk to a dedicated insurance agent, accountant, and an attorney to help determine if single premium life insurance should be a part of your portfolio.
Thank you for reading our blog! How can we help you? Contact us today.
Operating a small business is challenging and rewarding. People work hard to create an enterprise that pays their bills and employs others. Each member of the team is essential to support the daily company operations. If someone becomes seriously ill or dies, it impacts the business. Discover crucial reasons to invest in small business life insurance in this post.
Protect Your Family
One of the key reasons to get small business life insurance is to protect your business and your family when you die. Often family members are unable to take over a small business. You may have specific expertise as the owner that nobody else possesses. Plus, business loans may use your vehicles or home as collateral. This situation would put your family in a precarious financial position. Life insurance helps cover these expenses when you are gone. It also provides the business with needed colateral so that is can be fairly valued and, id desired, sold at a fair price.
Offset Loss of Value
Many business owners say nobody else can do what they can. And this is frequently true. When the owner dies, the business might have little or no value. Without the knowledge or talents of its proprietor, the company may close its doors. As a result, everyone experiences a loss. Business life insurance helps ease this financial blow.
But in many cases there is some intrinsic value in the business that can be unlocked. Life insurance planning can, if nothing else, buy time so that business partners or other who might be interested can negotiate a takeover. Too often, small businesses simply dissipate when the owner passes and with it the intellectual property, book of business, clientele and website that might have otherwise provided for those left behind.
Insurance for Key Players
Some small businesses focus on the time and talents of one individual. Others have a small team of professionals who get the work done. If one of them dies, the business will likely suffer. When this person is gone, nobody is instantly available to take over his or her areas of expertise. The right business life insurance policy gives your company time to find a suitable replacement or make other arrangements.
To account for this loss, many businesses purchase what’s called a key person or buy/sell life insurance agreement. These plans will instantly capitalize one or more key players so that the business and its practices can carry on without significant disruption. The proceeds from a buy/sell or key person agreement can be used in a number of ways in order to keep the business thriving. It will also help retain key client who might otherwise be tempted to move to a competitor.
Save the Business
It might take a combination of policies to save your business if you or another vital team member dies. A knowledgeable life insurance agent helps business owners find the ideal policies for their unique needs. For example, a personal life insurance policy will protect family members and help them pay off all types of debts. And a key person insurance policy protects proprietors and employees against business losses.
Each situation is different and requires strategic planning and careful valuations. Done right, your business will carry-on and the heirs of the deceased will be comfortable provided for. When a business must be sold in order to pay the heirs of an estate, the only person who usually wins is the buyer as they have significant leverage over the sellers.
Plan Ahead
While the need for small business life insurance might be evident, you may overlook it to handle other expenses. Nobody plans to die or get a debilitating illness. However, it happens, and you want to be prepared. Planning ensures the coverage is available when people need it. If something occurs, it would be too late to get coverage after the fact.
Whether it’s a life policy or one that provides income in case of a disability, insurance is one of the very best tax-advantaged tools to cover the unexpected.
Protect Wealth for the Future
Life insurance is a smart way to protect your wealth for the future. After a lifetime of building your business, you want to take care of your loved ones and employees. Investing in life insurance protects your current wealth for future generations and business owners. Instead of everything closing down, you can leave a thriving business behind to keep your loved ones comfortable for years to come.
Comparison Shop Now
Before a crisis occurs, start comparing life insurance policies today. Do you want to make sure your family can live in comfort after you die? Are you concerned about your business partners and employees carrying on with business operations as usual? Make a list of what you want to cover and share it with your dedicated insurance agent. No matter what the coverage, there are policies to help you achieve your goals. And your broker will comparison shop to help you get the most competitive rates.
There is no time like the present to invest in small business life insurance. Take care of business now and in the future with the right insurance coverage.
Thank you for reading our blog! How can we help you? Contact us today.
Many people do not want to talk about death because they think it is morbid. And many believe that they should not even worry about the expenses because they are already gone. The truth is, if you care about loved ones, you need to plan for them financially no matter what happens to you.
Also called final expense life insurance, a funeral expense life insurance policy is meant to cover your funeral and burial expenses. This, however, should not be confused with typical life insurance because this may not leave money to the people you leave behind.
Instead, it will pay for your family’s expenses to give you a decent funeral and burial. And this is your choice. You can name a beneficiary who will receive cash at the time of your death. Or you can name a funeral home as a beneficiary and manage the money at your demise to put together a pre-planned funeral service. But do you need a funeral life insurance policy? Below are some reasons why you need this important coverage.
All Expenses Paid
When we die, our family shoulders the burden of spending for our casket, funeral services, dinner and snacks served, burial lot, and burial services. With the rising cost of these services, the family we leave behind may need to borrow money to coordinate a proper funeral. The need to lean on others for cash puts them in debt at the time of your death.
With an insurance policy, your family can expect to have resources to pay as much as $50,000 for your final expenses. This insurance will protect your family, most especially so if you are the breadwinner, and your children are too young to be working and financing your burial.
Peace of Mind for Everybody
It is painful enough that a family member passed away. But a family left behind with no money to pay for funeral expenses is like rubbing salt to a wound. Can you just imagine the emotional and mental pain your family has to go through once you leave this earth? Your passing can cause severe pain, and yet here is another problem—money.
If you plan your death as early as now, your family will, at the very least, have peace of mind that your funeral costs should never be an added burden. The only thing they have to deal with now is the anguish of losing a loved one.
You Can Choose from Several Options
Funeral insurance policies come in two payment forms. This allows flexibility for consumers who cannot afford to pay the lump sum. For starters, you can pay the single-premium policy in which you pay the entire policy cost. Once paid, you have immediate coverage for the full death benefit. This applies especially to those who are 70 years old and above. In fact, this is the only option to pay if you are already 70.
The second choice is called the Graded Death Benefit. This is a payment structure in which the coverage of your death benefit increases as time goes by. A five-year payment policy will give you a different benefit than a 10-year policy. For example, you may only get 30% of the face amount at the time of your death if it happens within the first year purchasing the policy, and then you can get 70% of the face value on the next year. This gets higher as you pay longer.
Your Final Wishes Acknowledged
Funeral life insurance gives you the freedom and power to plan your own services. When you die, your family will be able to just grieve without the distraction and stress of planning a funeral. Plus, pre-planning ensures your final wishes are acknowledged. You have peace of mind that you will get the type of funeral you prefer for religious or personal reasons.
Plus, your family will not be forced into a decision based solely on finances. Some grieving people are forced to plan a cremation or quick funeral because they cannot afford to fulfill their deceased loved one’s final wishes. Funeral expense life insurance makes it easier for everyone.
Thank you for reading our blog! How can we help you? Contact us today.
None of us want to think about it, but we have to: we are mortal, and someday, we’re going to pass on. It is prudent to start planning now for that inevitable time in the future. If you have a family, then you have people who have to take care of your financial obligations after you’re gone. Why saddle them with this responsibility? By taking the time now to buy the right life insurance, you can make sure that your loved ones are taken care of in the event of your passing.
But how do you know what the “right” life insurance is? By asking the right questions, you can be sure to get the information you need to make an informed decision. Here are five key questions to ask before buying life insurance.
1) What Is Your Overall Goal?
Without a doubt, this should be the first question you tackle. The answer to this question will go a long way in determining what type of insurance you’re going to buy and how much. If you’re looking for a policy that’s only going to cover you while you have dependents living at home, then you might be looking for a different type of policy than one that will last the rest of your life.
If you don’t have much in the way of financial obligations, then it’s not as necessary to get a large policy as it is for someone who owns a lot of assets or carries a lot of debt. In other words, knowing what you’re potentially asking for from your life insurance policy will determine what sort of policy you should be looking for in the first place.
2) What Are the Options Available To You?
Once you’ve determined what you need the policy for, you can start looking at your various options. While there are many, many different policies out there, they boil down into a handful of options. The first option is determined by what policies are accessible to you.
Most employers today offer some type of group insurance policy. This is a policy that you purchase as part of a larger group. Because of this, you get a group discount — a decent amount of coverage compared to what you would get if you were buying the policy on your own. As a tradeoff, however, you give up certain privileges, such as flexibility (most group policies can only be changed at certain times) or portability (you can’t take it with you if you leave the company). Still, it’s fast and convenient, and in most cases, a physical exam isn’t necessary.
On the other hand, you might want to consider an individual policy. While this can often be more expensive, and often a medical exam is required, you do get more in the way of control over your policy and what you want it to cover.
Another choice is whether you want a term or permanent policy. A term policy is an insurance that you pay on for a period — 10, 20, 30 years, etc. At the end of that time, the policy ends, and you either have to purchase a new one or make your way without life insurance for a while. On the other hand, a permanent policy is just that — permanent, and meant to last until you pass away.
3) What If You’re Still Alive?
As odd as it may sound, this is an important question. If you have a term policy, there’s a good chance you will still be alive when that term expires. Many people don’t know this, but your typical term policy doesn’t give you anything in the way of benefits after it expires.
As term policies approach the end of their span, however, you will most likely be given several options, including renewing the policy, lessening coverage to reflect your changing financial needs or upgrading to a permanent one.
4) What Happens If Your Financial Situation Changes?
Down the road, your needs may change. You need to know how those changing needs might be reflected in your policy. Can you change it as you go, and how easy or hard would that be? And what happens if you, unfortunately, find yourself in a situation where making a payment or two is hard? Will the insurance company be understanding? Or will that result in an immediate termination of your policy?
Many permanent policies allow you to build up cash value based on what you put into it. This cash value can be used later on if you find yourself financially strapped.
5) What Happens If Your Health Changes?
Another key question concerns your health. As you age, and your lifestyle changes, your health will change as well. Will this change affect your premiums? With a group policy, probably not. With an individual policy, regular medical exams might be required that can result in a change to your premiums. This is not the case for all policies, however, which is why it’s important to know what you’re dealing with before you buy.
Work with a dedicated insurance professional to help you find the right policy based on your needs, age, and financial situation.
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As a senior, you may think life insurance is unnecessary. After all, your age and health conditions raise premiums. And, honestly, why now? Life insurance replaces income should you pass away, and you are retired. The mortgage is paid off. And, your kids are holding their own. Is a life insurance policy accessible and necessary at this time in your life?
Before you reason yourself out of purchasing a policy, contemplate the idea a bit further. And you might be surprised to discover the reasons for getting or maintaining a life insurance policy this late in the game. Consider some compelling reasons why you need life insurance today.
1. Pay Funeral Expenses
Funerals fall among the top five life expenses. According to Bankrate, the average funeral runs between $7,000 and $10,000. The cost continues to skyrocket. Without a plan to cover these costs, your family is left with large-scale bills and the worry that goes along with them. And a life insurance payout removes the burden from your family by supplying the money they need.
2. Cover Current Income
Retirement remains an impossibility for some seniors. Life circumstances or the passion for a career keep them in the workforce. If you continue to work, even parttime, life insurance offers a means of protecting your savings and replacing your income upon your death. Any named beneficiaries benefit from these monies. And this means one less worry in their time of grief.
3. Bear Loan Debt
If you are a retiree with significant outstanding loans, a life insurance policy may be in order. These payouts remove the burden of this debt from surviving family members. Carefully calculating the amount of coverage needed to eliminate the debt prevents you from over-insuring. A policy which outlasts the loans is not wise.
4. Cover Personal Debt
Funeral plans only cover costs associated with a funeral. Life insurance policies contain no restrictions on how the money is spent. Therefore, family members may use the funds for other purposes. Medical bills, credit card balances or estate taxes fall among the possibilities. Plus, the liquidity provides immediate resources for the family without the need to sell other assets.
5. Guard Your Business
Life insurance policies protect your business partners and employees in the event of your death. The funds left to beneficiaries may be used to offset the loss of your role in the business, cover interim expenses or buy out your interests. With these funds, the company you poured your life into is guarded through your death.
6. Protect a Disabled Child
The ongoing medical care and support of disabled children add up. If you are in this situation, likely you are aware of the astronomical expenses today and into your child’s future. Life insurance offers a means for you to provide for the medical and living costs associated with your child’s disability after you are gone.
7. Give Family a Boost
Life insurance policies enable you to provide for your family’s financial needs into the future. Paying for a college education for your children, eliminating the mortgage payment for a spouse, providing for a loved one’s travel or comfortable retirement are possibilities. Also, the cash value of the policy also supplements Social Security benefits to offer beneficiaries additional income.
8. Maximize Inheritance
As a tax-free estate planning option, life insurance policies maximize your inheritance. And the same principle applies if leaving your wealth to a charitable organization. Furthermore, irrevocable life insurance trusts (ILIT) are not subject to estate taxation and are protected from creditors. Also, these monies are especially useful for those needing financial protection.
9. Leave a Legacy
For many seniors, children and grandchildren bring meaning to life. And spending time with and finances on these loved ones prove a joy. Life insurance policies offer a way for these seniors to make a tax-free gift for major milestones after their deaths, without impacting their current savings. So given for birthdays, graduations and weddings, these gifts bless loved ones.
10. Provide Peace of Mind
The world proves an unstable place. Purchasing a life insurance plan, even as a senior, offers peace of mind for you and your loved ones. The financial provision does not relieve grief. However, it stops the worry of family members as to their future financial survival. And, you can do nothing about this after your death. But, you can address it today.
Of course, a life insurance policy should not strain your current finances. Providing for loved ones after one’s death comes in many shapes and sizes. Furthermore, talking with a qualified insurance agent reveals your options and helps you identify the plan which fits your unique situation. We can help.
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The New Year rings in with celebration and hope for a brighter year. Promises and resolutions fly like confetti after the infamous Times Square ball drop. But, as the sweeping of the streets commences the next day, so does the usual routine of our lives. And resolutions tend to get lost.
What if we told you that with one simple action you check several resolutions off your New Year hopefuls — and, that the change lasts all year? Even a lifetime? The answer? Life insurance.
Likely, buying life insurance has been on your mind and to-do list for some time. Unfortunately, it often gets pushed to the bottom of your tasks by seemingly more urgent issues. Let us suggest a few additional motivations to check buying life insurance off your list in the New Year.
Set Realistic Resolutions
One of the best tips for following through on New Year resolutions remains to set realistic goals. Challenging yourself is one thing, but setting objectives in the clouds produces defeat. Resolutions need to be SMART with the “A” standing for achievable. These types of goals look at how you will accomplish the goal and the realistic constraints on doing so.
Plus, choosing significant, meaningful actions also increases the odds of completion. Good resolutions which lack personal meaning fail before the ball drops. For instance, traveling to see the world proves a popular resolution. However, if you enjoy the comforts of home or live on a tight budget, this goal proves unrealistic for you.
Buying life insurance is a realistic resolution. A licensed insurance agent helps you find the policy which meets your needs and your budget. An appointment or two, and you are done.
Accomplishes the Incomplete
The weight of undone tasks grows as time marches forward. Just consider the resolutions of last year that still hang over your head. Tackling these incomplete to-do’s brings an extra sense of relief, a victory in the face of what was once a defeat. Why not take one or two of them on as New Year resolutions and check them off permanently?
Often when we think of life insurance, we muse, “I need to take care of that.” Unfortunately, this conviction arises during times of illness or tragedy. When these times of ill-health or age set in, premiums rise higher. Buying insurance early and when you are in good health increases your options. However, a qualified agent helps when your situation proves otherwise.
Boosts Your Health and Fitness
Many of us spout health and fitness as a New Year goal. We want to look better and feel better. And, these objectives come in a variety of shapes and sizes. Perhaps you choose to lose weight or gain strength; eat healthier or quit smoking. Google data from 2017 ranks getting healthy as the top New Year resolution.
This news comes as no surprise when we look to the promotion of fitness apparel, equipment, and gyms. Life insurance offers its form of promotion as premiums strongly tie into to your health. During underwriting, a medical exam reveals your stats on weight, blood pressure, cholesterol as well as conditions and habits which impact wellness — good motivation to get healthy.
Reduces Your Stress
Much of our stress and worry relates to family and the unknown. We wonder what happens to our family when difficult circumstances occur. We question the financial provision of our bank accounts and investments to cover our family’s expenses. A bit of planning and investing in the future removes some of the stress related to both.
Buying life insurance allows you to take action today on what happens tomorrow. And, your stress response can take a break. Life insurance financially provides for your loved ones in your absence. While being present is the preferred option, this insurance allows you to be more fully present and not worry about the other.
Shows Loved Ones You Care
A common bit of advice hails from those losing loved ones — tell your family and friends what they mean to you before it’s too late. This reminder offers a valuable New Year resolution. Why not determine this to be the year that you show more love to those you care about? We cannot think of a more noble choice.
To take it even further, what about saying “I love you” in the unfortunate event that you are not there to express it directly? Life insurance tells your family that you care about them. In fact, this one simple action lets them know that you love them enough to plan for their future. You are not protecting your estate alone; you are providing for those you love. Ready to set those New Year resolutions?
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For many younger people, the thought of buying life insurance is probably about as far from your mind as it can be. You’re young, and life insurance is something only old people have to think about, right? Unfortunately, nothing could be further from the truth. While you seem to have a long, happy life ahead of you, the fact is that accidents and other problems can arise. You might be asking what should I buy life insurance now? Discover the advantages of being young when you decide to invest in a life insurance policy.
Young People Pay Affordable Premiums
Life insurance premiums are calculated based on several factors, but one of the main pieces of the puzzle is the applicant’s age. Since the whole point of life insurance is that it gets paid out when the insured individual passes away, the younger you are, the less chance that’s going to happen. Being young means greater savings for you in the form of lower premiums. In the eyes of the insurance company, you’re a much less risky gamble, so they do not need to charge more to offset their potential losses.
When you’re in your 20’s, life insurance is quite affordable. When you get older, though, you’ll start to see those premiums increase. By starting now and locking in a cheaper rate, you’ll save a lot of money in the long run.
It Is Affordable When You Are Healthy
Another piece of the insurance factor puzzle is your level of health. It’s probably safe to assume that you’re as healthy now as you ever will be. And you’re certainly healthier now overall than you will be in 20 or 26 years. Just as stated above, the longer you wait, the more you will see those premiums creep up.
Always Remember to Consider Others
If we were to look at the typical 20-something, most likely we’ would find a whole group of other people who rely on this person. And in the future, this group may continue to depend on the person. Consider a young family, just starting out, as well as older parents. Aging parents will need additional help and care as time progresses.
As a 20-something, people depend on you or may rely on you very soon. What would happen to them if you were not around? Like we mentioned before, even the most careful of us can still have accidents or become ill. By investing in an insurance policy now, you are taking a huge step in guaranteeing their financial stability even after you’re gone.
Remember Your Student Loans and Other Debt
Unfortunately, another typical 20-something characteristic these days is debt. In fact, right now the average student debt amount of a new graduate is over $37,000. And do you know what happens if you pass away? In some situations, your debt might transfer to your spouse or someone else. Taking out a life insurance policy helps make sure they do not have to face off with this debt for years to come.
Students loans aren’t the only kind of debt that could come back to haunt someone else. Credit cards, car payments, mortgages — in the event of untimely death, the creditors aren’t likely to just write off the amount owed and move on to the next person.
Your Existing Coverage Probably Is Not Enough
For some of you, there’s a good chance that you think that this list doesn’t apply to you because your work supplies you with coverage. While this is a good step, most likely the amount of insurance from your job just isn’t enough. Most work-related plans only offer an amount equal to two or three times your annual salary. The amount might be sufficient to pay off immediate expenses and set up a small safety net. But unless you’re living by yourself with no dependents, then that money will run out sooner than you think.
In contrast to this, most insurance experts estimate that you should take out an insurance plan that’s worth eight to ten times your annual salary. This level of coverage gives your family and others enough money to pay off your debts, handle the bills, and still have enough left over to help them while they struggle – first by coping with loss, and second by learning to survive.
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Second to die life insurance is precisely that – a policy insuring two lives that only pays out once the second insured has passed away. This coverage is typically used for estate planning and wealth transfer preparation.
Permanent insurance policies like whole and universal life are the most common types used in second to die plans. There are several advantages to policies covering two lives including cost, reliability and tax avoidance. When setup properly, these plans can help families cover future expenses in the most efficient manner.
Understanding Second To Die Life Insurance Plans
These policies are offered by several different insurance companies and have been for many years. Most typically, a husband and wife would be the insured persons on the policy and the beneficiaries would be their children, a trust or a business interest.
Second to die life policies do not pay out when the first insured passes away. It is not until the second insured passes that the policy proceeds are available income tax-free to the beneficiaries. In this way, it is a very simple structure without a lot of moving parts.
Plans can be purchased using a single premium, but most often are funded over a set number of years or a lifetime. Some policies can grow each year depending on the underlying investments in the policy. Others would have a known, fixed benefit at death from onset.
What Type Of Life Insurance Is Best?
There isn’t a one size fits all approach to second to die life insurance planning. Some owners will use whole life insurance while others will use guaranteed universal life plans. Both policy types have their advantages and disadvantages.
While whole life will typically costs more and offers more cash value, guaranteed universal life will be less expensive and offer less cash value to the insured(s). Our independent agency offers both whole and universal life and we can help you compare the two.
The premiums associated with second to die life insurance are usually less than a policy with only one insured. This is because there are two insured lives and therefore it is likely to stay in-force longer. The longer the policy is active, the less it will cost the consumer.
Some life policies are funded with yearly premiums while others are established on a set schedule (payments for ten years only for example) – still others are funded with a lump sum single premium. It depends on what the owners are wanting to accomplish with their insurance policy.
Life Insurance Can Avoid Income and Estate Taxes
Without a doubt, there are few, if any, financial instruments that offer more tax advantages than life insurance.
This is why savvy consumers have been using life insurance policies for wealth transfer, business succession planning and to reduce state and federal estate taxes.
Life insurance proceeds are income tax free at passing. The immediate benefits created by a life policy have smaller income tax consequences for the beneficiaries upon distribution.
Additionally, when a life policy is created properly it can avoid state inheritance taxes in some states that still impose such a tax. More importantly for some high net worth families, certain life policies can help to avoid federal estate taxes as well.
Tax Avoidance Using Irrevocable Life Insurance Trusts
The use of Irrevocable Life Insurance Trusts has grown tremendously among the wealthy as reliable means to create a federal tax-free source of funds to transfer wealth and account for other liabilities – including estate taxes.
So long as the trust is the owner of the second to die life insurance policy and the trust is also the beneficiary, then the proceeds may not be included as part of the taxable estate. These types of trusts (abbreviated as ILIT’s) are usually established with the help of estate planning attorneys.
As referenced in the name, these estate planning vehicles are typically irrevocable. Once created and funded with a second to die life insurance policy – the insured (i.e. premium payor) has little access to the funds. There is quite a bit more that goes into the creation of ILIT’s, but second to die life policies are often the plan of choice.
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We are an independent life insurance agency specializing in wealth transfer and estate planning strategies. Contact us today to compare illustrations and to learn more about the second to die life insurance policies that might best fit your needs.
Seniors eligible for government Medicare are sometimes in search of combination insurance policies that will cover both the gaps in Medicare and final expenses associated with a funeral. Fortunately, there are a few companies that offer both coverages on one application making it easier to insure both needs.
Insurance providers such as Mutual of Omaha, Forethought Life, Sentinel Life and American Continental (to name a few) all allow applicants to combine Medicare supplement and funeral expense insurance.
Advantages Of Combination Insurance Coverage
Certainly the convenience of knowing that two important needs can be covered in just a few strokes of the pen is a nice feeling. The ability to cover out-of-pocket expenses associated with Original Medicare as well as the expenses needed to pay for a funeral all with one carrier will keep insurance issues simple for those who want peace of mind.
It will also be much easier for the spouse and/or the children of the insured knowing that they will only need to work with one insurance company in order to cover two basic needs. This type of simplicity is what families want most in times of need.
Supplemental Insurance Offers The Same Benefits
A Plan F is a Plan F no matter the carrier from whom it is purchased. The only difference is if the insured chooses to purchase a “select policy” (one that operates on a network) or a high deductible Plan F, but those options are available regardless of the attached life policy. The coverage and benefits would not differ one iota so long as a traditional supplement is chosen.
All Medicare supplement carriers offer several policies for seniors to choose from. That is to say that not all carriers offer all plans, but almost all companies offer the most popular supplemental insurance coverages like Plans C, D, F, G and N. Should the applicant choose to combine the two coverages, s/he can still purchase a plan that is most suitable for his or her needs.
How Does The Funeral Insurance Policy Work?
Most life insurance policies designed to cover funeral expenses operate in the same fashion regardless of whether they are attached to another type of policy. Again, the life policy will not differ because the applicant is combining it with a Medigap plan.
In most cases, a whole life funeral insurance policy will require monthly premium payments until it is considers paid-up. No additional premium payments are needed once a policy is paid-up with a life insurance provider. The policy will build cash value over time that can be loaned against or tapped for unforeseen future expenses if needed.
Many funeral insurance policies offer different versions for the insured to choose from at onset. One such example is referred to as a modified death benefit meaning the policy offers a smaller death benefit initially, but will gradually build up over time.
Policies with a modified death benefit are advantageous for those who wish to save money on their premiums as well as those who are less worried about a smaller death benefit in the first few years of the policy.
Are There Discounts When Combining Insurances?
Not usually. Some insurance companies will offer discounts on Medicare supplement insurance when both spouses are insured, but that is true whether or not a funeral policy is purchased. And generally speaking, the attached life insurance coverage will be similar in price whether or not a Medigap plan is purchased in conjunction with the policy.
There usually will not be any considerable savings associated with the combination purchase, but the simplicity of having both insurances with one company cannot be overlooked.
What If I Cancel One Of The Policies?
That is always an option and with almost all companies who provide dual applications, there will be no issues. If for example, the Medicare supplement policy was cancelled because another carrier was offering a much lower price on the same coverage, then the funeral insurance policy could be kept in force with the original carrier.
The opposite is also true. Should the insured decide to cancel the final expense coverage or transfer it to a paid-up policy, then the Medicare supplement would not be affected. In this way, policyholders are not locked into both coverages for their lifetime.
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In summary, purchasing a funeral expense policy and a Medicare supplement insurance plan from the same carrier can be an efficient way to cover two basic needs at one time. The simplicity is helpful for the insured and his or her heirs.
Hyers and Associates, Inc. is a full service Medigap and life insurance brokerage firm. Contact us today to learn more about your best insurance options.
It’s April 15th and while many have already filed their tax returns, some are still scrambling to get their documents in on time. Thus, it is an appropriate time of the year to talk about different ways to reduce your income taxes.
If you wish to reduce the amount of taxable income on your 1040 or are contemplating additional deductions, then you need to keep certain insurance policies in mind. There are several insurance and investment accounts that can lower your tax burden when setup properly.
Listed below are a few of the most common strategies and policies.
Annuity Investment Accounts Defer Income Taxes
If you are a fixed income investor primarily using certificates of deposit, then you might be creating unneeded taxable income. Whether or not you withdraw the interest, your CD’s are taxable investments – plain and simple.
If you don’t need income on a regular basis, then you should consider investing in a fixed or indexed annuity account.
Annuities do not generate taxable income so long as you allow the interest to compound. You can defer taxes in a non-qualified annuity for your entire lifetime if you wish.
If regular income is unneeded, you can determine how much and when you want to withdraw it. Thus, you are in control of how much (if any) of your interest will be taxed.
It is also worth pointing out that fixed annuity accounts offer higher interest rates than most bank savings instruments. Additionally, your deposits are insured up to a total of $300,000 in most states. And no, the insurance company does not keep your principal or interest upon death. All accumulated funds are payable to your named beneficiaries at passing.
Life Insurance Proceeds Avoid Income & Inheritance Taxes
Life insurance may be the single best vehicle for tax avoidance. While these policies should not be sold as “investments” they certainly have all the attributes of a good one. Whole life insurance and indexed life policies are very safe and pay reliable interest based on the fixed internal returns declared by the policy or the chosen market index.
Life insurance grows tax deferred like an annuity account. If you do not withdraw the interest or gains, then no income taxes will be due – ever. But unlike an annuity, life insurance proceeds pass income tax free to your beneficiaries. That’s right, no income taxes are due whatsoever.
This is why single premium life insurance policies have become so popular. Rather than pay income taxes on the interest generated from your bank CD, you can easily purchase a life policy with the principal. Most single premium life contracts require very little underwriting.
The single deposit would create an immediate death benefit much larger than a CD or annuity account could ever promise and the cash value would grow each year. You would have access to the entire invested deposit (cash value) amount almost immediately if it was needed for an emergency or anything else. And many policies offer an accelerated death benefit that can pay for long term care expenses.
Finally, in states like New Jersey and Pennsylvania, life insurance proceeds made payable to a named beneficiary are not subject to the state inheritance tax. This is a significant advantage over almost all other accounts in states with this unique, additional tax.
Life policies offer guarantees, liquidity, long term care benefits, income tax avoidance and can avoid inheritance taxes as well. Talk about a win win “investment” vehicle.
Write Off Your Health Savings Account Contributions
If you are in the market for health insurance and you are comfortable paying incidental expenses out of pocket, then a health saving account might be right for you. A HSA is a separate account that you can contribute thousands of dollars to each year. And the best part, all contributions can be written off as a tax deduction up to certain individual and family limits.
The funds grow tax deferred and can be withdrawn tax free for qualified medical expenses! If you or your family is in need of additional deductions, then setup your health savings account and contribute the maximum amount each year. And make certain that it’s used to pay for the many qualified expenses that the I.R.S. allows. You should become familiar with what qualifies as a medical expense at the I.R.S. website.
And once again like an annuity, all funds belong to you. Should you later cancel your health insurance or switch to a different type of policy, then you can withdraw all accumulated funds from your HSA. But remember, if the funds are not used to pay for medical expenses then they would once again be subject to income taxes. No penalties would be due however.
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In summary, these are three simple ways to reduce your tax liabilities each year. While one size does not fit all, the strategies can be beneficial for most.
It is always wise to talk with a knowledgeable agent about the “big picture” before purchasing a life insurance or annuity policy and to make sure that you understand any potential limitations of these products.
And you also want to make sure that you know exactly what to expect from your health insurance policy and health savings account as well. A tax advisor should be included in the discussion.
Please contact us to learn more about tax avoidance strategies that can help you preserve more of your hard earned wealth.
If you are interested in term life insurance with no medical underwriting, physicals or blood-work, then there are policies available for you. Many companies now offer non-med term policies; also known as simplified issue term life insurance.
These policies are appropriate for those with less than perfect health and for those who want to avoid medical underwriting. Applying for coverage is simple and policy turnaround is quick and easy.
Non-Med Term Life Insurance Providers
There are a handful of companies offering such policies. Some are permanent policies designed to cover burial expenses while others are for specific terms – say 30 years. Usually there are limits on the face amount of insurance you can purchase. The maximum amount available from most providers is $400,000 in death benefit per policy.
More stringent underwriting would be necessary if you wanted a larger face amount. You can purchase multiple policies from separate carriers in order to increase your overall insurance coverage, however.
Most companies will ask at least a few questions on the application. There can be certain factors that prevent you from buying a policy. This would apply to those with serious health issues. Most who apply are accepted so long as they’re in reasonably good health.
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Whole Life Or Term Life Insurance Coverage?
Term life policies can be purchased for lengths of 10, 20, 30 or 40 years with some lengths in between. You are always free to cancel your policy at anytime if you so choose. You are essentially renting the insurance for as long as you think it might be needed. It’s not permanent. Premiums are more affordable and death benefits are typically higher. They are designed to get you from point A to point B in life.
There are several benefit riders you can add to your term policy, including: critical illness, waiver of premium, disability income, and accidental death or dismemberment. Some carriers allow you to add additional insureds like a spouse or children.
Conversely, most whole life policies generally have smaller death benefits. We see these used to cover funeral expenses. Most guaranteed issue whole life insurance policies do not provide a full death benefit right away. That would involve too much risk for the insurance company.
More likely the full death benefit would be available after the first year. If the insured passes away before then, the premiums plus 10% would be returned to the estate. This is referred to as a graded death benefit.
Simplified Issue Term Life Insurance Quotes
To be clear, you get your your best insurance rates when you are medically underwritten. However you may not wish to subject yourself to the process for any number of reasons. Non-medical term life insurance will be more expensive, but it is certainly not cost prohibitive.
Term policies can be used as a stopgap measure if you find yourself in a transitional period of time. Perhaps you are working toward better health and need something in the interim. In the future, you can purchase new term insurance through traditional underwriting methods and cancel the old policy.
In summary, simplified term life insurance is a quick and painless way to purchase a life policy that will protect your loved ones. It will give you peace of mind knowing you have financially provided for those closest to you.
In any form, life insurance is the most cost effective way to insure a stable future for those who depend on you. Whether it’s term, universal or guaranteed whole life insurance to cover funeral expenses, a policy with no underwriting can make a lot of sense.
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If you would like to view simplified issue or traditional term life insurance quotes, please contact us today. At Hyers and Associates, Inc we work all of the major life insurance providers. We’ll recommend the most suitable plan for you and your family.
When it comes to life insurance planning, our clients want real answers. They ask questions like, “How much insurance do I need? Is it affordable? How long should my policy last?”
Most large employers offer some amount of life insurance or accidental death coverage.
Millennials and the baby boomers are two generations who currently make up the majority of the population in the United States. Understanding how each generation thinks and what they want helps determine more about their life insurance needs.
Retirees With an Income
There are so many insurance options. How do you know what the differences are and determine which is right for you? The team at Hyers & Associates would like to end the confusion and help walk you through what the differences are between these two types of life insurance.
Protect Your Family
Many people do not want to talk about death because they think it is morbid. And many believe that they should not even worry about the expenses because they are already gone. The truth is, if you care about loved ones, you need to plan for them financially no matter what happens to you.
None of us want to think about it, but we have to: we are mortal, and someday, we’re going to pass on. It is prudent to start planning now for that inevitable time in the future. If you have a family, then you have people who have to take care of your financial obligations after you’re gone. Why saddle them with this responsibility? By taking the time now to buy the right life insurance, you can make sure that your loved ones are taken care of in the event of your passing.
As a senior, you may think life insurance is unnecessary. After all, your age and health conditions raise premiums. And, honestly, why now? Life insurance replaces income should you pass away, and you are retired. The mortgage is paid off. And, your kids are holding their own. Is a life insurance policy accessible and necessary at this time in your life?
For many younger people, the thought of buying life insurance is probably about as far from your mind as it can be. You’re young, and life insurance is something only old people have to think about, right? Unfortunately, nothing could be further from the truth. While you seem to have a long, happy life ahead of you, the fact is that accidents and other problems can arise. You might be asking what should I 
Without a doubt, there are few, if any, financial instruments that offer more tax advantages than life insurance.
Annuities do not generate taxable income so long as you allow the interest to compound. You can defer taxes in a non-qualified annuity for your entire lifetime if you wish.
Life insurance grows tax deferred like an annuity account. If you do not withdraw the interest or gains, then no income taxes will be due – ever. But unlike an annuity, life insurance proceeds pass income tax free to your beneficiaries. That’s right, no income taxes are due whatsoever.