Life Insurance can Help Your Retirement Planning

Life Insurance can Help Your Retirement Planning

Buying the right life insurance coverage with your future retirement in mind can make it easier for your family to handle finances when you die.  It can also help protect your money, manage your taxes and give you the opportunity to grow cash value which you can use for a variety of needs and activities. Here are some tips for using life insurance as part of your retirement planning. Permanent life insurance can help your retirement planning Permanent life insurance offers you a death benefit and the potential to build cash value that can be used to help supplement your retirement income. Perhaps one of the most interesting aspects of permanent life insurance is the ability to access the cash value. Cash value is generally tax-free through a policy loan.  Why is tax-free so important? Lower taxes during retirement If you use the cash value from your life insurance policy read more
Why Convert Term Life to Permanent Insurance?

Why Convert Term Life to Permanent Insurance?

With everyone’s health on the radar a little more due to Covid, it is important to truly think long term about one’s life insurance.  For some, term insurance will still be satisfactory for what a client is trying to accomplish, which could be protecting lost income or a mortgage.  However, for other clients, it could be an opportune time to look at whether a term conversion makes sense.  With a solid conversion option, a client can choose to keep all or a partial amount of the term coverage that he or she had.  And the beauty of the conversion is that there will be no medical underwriting.  For any client who has had a significant health change, this can invaluable.  A term conversion is a provision that most life insurance carriers offer that allows an insured to convert all or a portion of their coverage to permanent, without having to read more
How to buy life insurance as a couple

How to buy life insurance as a couple

An important part of building a life with your significant other is creating a good financial foundation that can protect each other and your family. Knowing how to buy life insurance as a couple should be a big part of that plan. To find the best coverage for your partner, here are some tips. Buy life insurance for both of you Once you’re married and your lives are bound together, so too is your financial future. Life insurance is a vital component of your financial security. Chances are good that you depend on each other for financial support, and if you have children they also depend on you both. Your spouse can use the life insurance money for a variety of things, including:  Day-to-day living expensesSupporting your childrenInvestments or future incomeThe creation of an extra emergency fundPayments for your final expenses when you pass awayPayments for an outstanding mortgagePayments for read more
Life Insurance through work…a potentially false sense of security

Life Insurance through work…a potentially false sense of security

In the 2018 LIMRA Life insurance Barometer study, 60% of Americans own a life insurance policy.  However, continuing the trend that first started in 2017, more Americans are now covered by a group life insurance plan than by an individual plan they purchased. 2017 was the first year since LIMRA began tracking the issue in 1960 that group insurance was more popular than individual plans. Group life insurance is great, often the benefit is free, so why not accept it.  The problem is not accepting the group plan, the problem is the client believing that they no longer need to discuss an individual plan. Some companies will offer a flat amount of $25,000 to $100,000 of life insurance as a group benefit, while others will offer a multiple of the employee’s salary.  If you are one of the lucky few to be debt free, or you do not yet have read more
Why you should have a Contingent Beneficiary

Why you should have a Contingent Beneficiary

A contingent beneficiary is a beneficiary that is next in line if the primary beneficiary pre-deceases the insured.  If an insured does not have a contingent beneficiary and the primary beneficiary dies before the insured, then the insured’s estate will be next in line to receive to the death benefit proceeds.   This is assuming the insured does not make a change.  The issue of leaving death benefit proceeds to an insured’s estate is that the proceeds become susceptible to creditors of the estate.  Even if there are not creditors, the proceeds will be distributed through probate according to intestate law.  The state in which the insured’s estate is settled in will determine who gets the proceeds.  This may be entirely against what the insured wanted to happen when he or she took out the policy.  An example might of an undesirable beneficiary could be a son who is addicted to read more
Life Insurance pricing

Life Insurance pricing

Advertising for Life insurance is becoming more common.  This is a good thing for all of us, but it leads clients down a confusing path.  Are online life insurance plans less expensive?   The answer is no.  Online life insurance quotes are the same pricing that any independent life insurance agent can offer.  There is not special discount for online agents, the pricing for life insurance products are set and approved by State insurance departments.  But, can a certain national online life insurance retailer really help you “save up to 70% on your term life policy…”  The answer to this question, is more difficult.  They may be able to save you 70%, but what are they comparing it to?  All term life insurance companies have different products, with different features.  Saying they are saving you 70% off term insurance, is the same as me selling a Hyundai and saying it is read more
What is AML and what do I have to do?

What is AML and what do I have to do?

A common question asked by many independent life insurance agents is “What is AML?”  AML stands for Anti-Money Laundering training, a requirement by the U.S. Treasury department.  The Treasury department defines money laundering as the following: “Money laundering generally refers to financial transactions in which criminals, including terrorist organizations, attempt to disguise the proceeds, sources or nature of their illicit activities. Money laundering facilitates a broad range of serious underlying criminal offenses and ultimately threatens the integrity of the financial system.” In order to sell any life insurance products that contain a “cash value component,” all Life insurance producers are required to complete Anti-Money Laundering training.  Since life carrier appointments are not product specific, even if you only sell term life insurance, if the insurance carrier offers a “cash value” product, you will be required to take the AML training. To keep your certificate current, AML training is required every read more
Application Options – the truth about Drop Tickets

Application Options – the truth about Drop Tickets

So your client is ready to apply for life insurance.  Have you discussed the application options with them?  Paper applications, e-applications, drop tickets?  There are several options, though not all are available from each carrier.  Not only that, but drop ticket applications vary considerably in the initial questions that are asked by you the agent, and the length of time the telephone interview will take. So the good news is that your comfortable with your options now, the bad news is that not all options are available from every carrier. In fact there are only a few that offer all three options. Here is a list of a few Life insurance carriers and their application options:   Depending on your point of view, if you are a P&C agent or a Carrier life agent, you will either love or hate drop ticket applications.  Regardless, these types of applications are not read more