TERM INSURANCE ($1,000,000 minimum)
In today's interest rate environment $1 Million dollars will only provide about $45,000 per year of income to your survivors. It hardly makes them "RICH". How much you need depends on many factors including your income, current savings, expenses, time to retirement and other factors that many people fail to consider when they buy a temporary life insurance policy. Sadly, 98% of term policies will never pay a death benefit since most outlive the term or lapse the coverage when the premiums skyrocket at older ages. A hybrid plan combining some permanent and term insurance might make more sense in the long run. Our advance planning software takes your total financial picture into account and allows you to buy the right type and kind of coverage. Don't use an inconsistent rule of thumb you heard on the radio, get it right the first time. Learn the 2 things most term life agents don't want you to know.
CASH VALUE LIFE INSURANCE
Buying a home allows you to build equity that you can borrow against and hopefully get back out when you move or sell your home. Owning may be more costly initially because of maintenance, upgrades, and property taxes, but over time you may have something to show for it.
Cash Value Life Insurance works in a similar fashion. Your premium (which is generally higher) goes to pay the term cost of insurance on a pretax basis and the extra amount goes into a side fund earning interest. Interest is calculated based on the type of policy purchased. There are various types of permanent life insurance such as Variable Life, Indexed Universal Life, Whole Life, and Universal Life. The side fund accumulates liquid cash values you can access when needed at favorable interest rates (as low as 0%) using loans or withdrawals. The side fund grows tax deferred. ( a major advantage if you are in a high tax bracket)
Your cost of insurance (not premiums) will generally rise over time but the rising cost is subsidized by your side fund so your premium or out of pocket cost stays the same. Every 20 years, the cost of a term policy can rise by 4 times or more. Permanent insurance keeps the same rate class as the policy was purchased; which can be a major advantage. Because cash value is your money, a permanent cash value life insurance policy is an asset on your balance sheet instead of a liability. Cash value life insurance can also be used to accumulate wealth without market volatility, and designed to be liquid after only one year.
These types of designs also allow the owner of the policy to earn up to the annual cap which can be 10% or more without market risk. If you would like to learn how a properly designed Liquid, High Cash Value life insurance policy can supercharge your emergency funds or cash account, send us a request via email and we can provide you a custom illustration.
Annuities (Deferred and Guaranteed Lifetime Income)
Retirement research by Dr. Menahem Yaari, Dr. Moshe Milevsky, Leonardo Fibonacci, Dr. David Babel, Mathematician - Andrei Lolmogorov, Irving Fisher, Benjamin Gompertz and others have proven that there is only 1 Way to Retire OPTIMALLY. Annuities provide the highest level of lifetime income for a given dollar amount than any other asset. Without an annuity to provide some level of guaranteed lifetime income, you simply cannot have the OPTIMAL RETIREMENT if you live to age 90 or above. No other financial asset can provide guaranteed income you cannot outlive except an annuity. There is also an optimal amount you should consider putting into an annuity. When your income plan is optimized with guaranteed lifetime income, you can be more confident investing the remaining funds not needed for income in more growth oriented investments to provide potential inflation protection.
BEWARE- many insurance agents are not licensed to offer or even talk about securities, so they may recommend that you put too much of your money into an annuity. In addition, they may choose the product that is best for them and not you...regardless of your needs. Insurance agents are not required to act as a fiduciary unless they also have a series 65 registration or the account is an IRA.
To help provide the highest level of accuracy, we use advanced planning software to determine these optimal amounts you may put into an annuity. If you would like to know the optimal amount for you to consider putting into an annuity, click the link below.
Since 1993
How We Can Help
We help our clients several ways.
- Selection of the right kind and amount of life insurance
- Selection of the best annuity to meet your retirement income needs and risk tolerance.
- Advance Financial Planning -Scenario testing to provide the OPTIMAL RETIREMENT.
- Estate Planning
- Tax Reduction for Business Owners through selection of the optimal retirement plan
- Business Continuation / Buy Sell Agreement Funding
- Optimal Retirement Plan Selection
Next Steps...
Send us your contact information with a short request for what you want and Robert will get back to you. We do not sell or share your information with other parties