Are You a Parent? 5 Things to Know About Life Insurance Now

Parents want the best for their children. Creating a future for kids takes effort and for single parents, the responsibilities increase. Should the unthinkable happen, children have needs. Life insurance plans alleviate anxiety for the future but single parents have more to think about when shopping insurance policies. Coverage, pricing, and more all change for single parents. Eliminate uncertainty. Gathering the right answers beforehand helps determine the right life insurance policy. For single parents making the decision about life insurance these pieces of information help determine the coverage amounts and the right policy choice:

1. Speak to Caregivers

The first thing is determining caregiver options for children. Selecting a legal guardian creates a definitive plan for the care of children. Capabilities, assets, and opportunities vary per caregiver situation. Caregivers may be peers to parents and anyone in-between. The right policy covers expenses realistic to each case. Speak to caregivers early and learn to plan for later.

2. Think about the Children

The right policy includes planning for child age and personal needs. Parents of younger children may wish for more coverage to cover longer lengths of time. Parents of older children may have school or college expenses to plan for. Many policies may be amended, adding coverage later on.

3. Understand the Finances

The right policy extends coverage beyond immediate costs, closing out personal debts as well. Things will already be difficult for the children, adding debt and expenses only serve to complicate things. Organizing personal debts beforehand and finding sufficient coverage helps children cope with their immediate situation, and the future moving forward.

4. Add Everything Together

Experts recommend multiplying annual salary by 7 to create base coverage amounts. This means life insurance policy coverage for a single parent with an income of $40,000 begins at $280,000 and grows from there. Caregiver options, future plans, and personal debts additionally factor in determining the right amount of life insurance coverage. This may sound like a large number, but life insurance policies are affordable through the right insurance carrier.

5. Shopping for Life Insurance

It is easy to overestimate the cost of life insurance. Policy amounts sound large yet policies are often much more affordable than first suspected. Planning a life insurance policy around children means choosing policies for the right amount of time. For parents of children leaving the home in several years, long policies may be unnecessary. Coverage for the proper amount of time helps limit overall cost. With the right planning and forethought, life insurance policies can cost as low as $50/month. Speak to an agent today about finding the right life insurance coverage. Having a plan for the future helps keep the focus on today.

Insurance topics have bearing on finances, decisions, and healthy living just to name a few. Have any topics to suggest? Send any topic suggestions or insurance-related questions on over!


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Special Considerations For Women Ready to Retire

Women have more to think about planning for retirement. On average women live longer lifespans than men. Men reaching age 65 have an average life expectancy of around 84.3 years. Women reaching the same age can expect over two extra years, reaching average lifespans of 86.6 years.

As a woman there will likely be living expenses well over age 80 and beyond. Women planning for retirement must prepare for 20-30 of living expenses or more. The following steps add value to any retirement savings plan.

  • Know all the basic living expenses. Preparing a budget means knowing annual expenses. This helps determine the amount of income necessary for each year of retirement. With the basic expenses covered there is more time to experience the joys of retirement.
  • Use pensions. Women with pension plans may have advantages over men. A consultant with Macro Consulting Group says women may actually receive larger lump-sum payments than men. This is because many plan payout calculations favor women. Lump-sum payouts can be reinvested in more profitable markets.
  • Seek alternative income sources. Untouched savings accounts generate money for later expenses, or for leaving an inheritance. Pensions, social security, and other sources create a mix of income allowing savings to grow.
  • Check legal paperwork. Married women listed as primary recipients of a spouse or partner’s pension want to make sure all legal and insurance paperwork is in order. Traditional plans cover basic survivor payouts, reducing the spouse or partner’s payout during their lifetime. Couples may fare better agreeing to a lump sum payout and reinvesting in life insurance.
  • Put the brakes on Social Security. Retirees thinking of living off Social Security benefits may want to consider waiting. Social Security benefits left alone until age 70 pay higher monthly amounts. Retirees waiting until age 70 qualify for delayed-retirement credits, increasing monthly Social Security payments.
  • Watch for lump sum Social Security payouts. A payout for uncollected benefits may cost delayed-retirement credits. Social Security may offer attractive lump amounts for uncollected payments beyond age 65. Read the fine print. According to a partner at Plaza Advisory Group in St. Louis, Social Security lump payments have a price. Delayed retirement credits are exchanged for lump sums, meaning lower monthly payouts.

We are always on the lookout for insurance topics and information impacting health, wellness, and pocketbook. Have any insurance related questions? Be sure to reach out for answers.


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Investing Via Life Insurance?

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

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

Term and Permanent Life Insurance: A Breakdown

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

Term Life Insurance

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

Permanent Life Insurance

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

Permanent Insurance: Advantages over 401k/Roth IRA

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

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

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


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Have a Student Loan Consider Life Insurance!

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

Who Pays for the Loan

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

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

The Right Life Insurance Policy

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

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

Getting Things Right

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

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


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How to Think of Exercise as Fun

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

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

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

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

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

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

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


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When Should You Cash Out of Life Insurance?

Some people assume that once the children have finished university or you have actually settled your home loan it is time to cancel or lower life insurance policy. Child Boomers are living longer, and cashing out life insurance policy could assist repay financial debt or give funds for loved ones.

Yet before you make a decision to cancel your policy, take a while to thoroughly examine your scenario. Robert Quinlan, taking care of participant of Quinlan Treatment LLC, provided the complying with suggestions on life insurance policies as you get to retirement age. Below is exactly what you need to understand.

Boomer: Once I reach my retired life, do I need to keep my life insurance policy protection in force?

Quinlan: There are numerous reasons that someone must keep their insurance protection. Did you still have financial debt from a home loan, automobile finance, “still as well huge” charge card(s) equilibrium, or in the midst of education and learning financial debt for a second occupation or to help educate a grandchild or child? You might not have adequate retirement income or funds for your surviving partner or companion to keep their life style today after your fatality. Are your charitably inclined? You may desire to leave all or several of your life insurance policy benefits to your favorite charity, or leave it to your youngsters.

Boomer: What is the distinction in between term and also long-term life insurance policy?

Quinlan: Term life insurance is like renting a property. It will offer your recipient with a death benefit for a restricted period of time, like 10 or Twenty Years with a degree premium that is initially made a decision based on the age as well as the health and wellness of the insured. There is no money value.

Permanent life insurance policy (i.e. whole life or universal life) gives your beneficiary a survivor benefit as long as you live. It additionally collects cash money value that you take out or obtain against throughout your lifetime. It has a level, higher costs than term insurance policy.

Boomer: If I am age 60 or older as well as have extinction insurance, which type of life insurance policy should I be checking out to buy?

Quinlan: You may read this answer a whole lot– it all depends. Do you desire protection for a short-term time period like Ten Years and you want a reduced costs than long-term life insurance policy? After that term insurance coverage could be right for you. If, however you desire security up until you die, after that permanent life insurance may be far better compared to term. Talk to an insurance policy specialist to assist you address your scenario.

Boomer: Are my recipients tired on the benefits they obtain on my fatality?

Quinlan: No, for the huge bulk of Americans who receive lump sum checks, these survivor benefit checks are revenue tax-free. If a person chooses to receive the earnings over say Ten Years, a lot of the routine repayments will be income tax-free. However, a smaller part of each check will certainly be taxable (as average revenue) as a result of the rate of interest that the provider will pay you every year that the funds remain with the service provider.

Boomer: What is the long-lasting care motorcyclist that can be contributed to my policy when completing my application for a new life insurance plan?

Quinlan: Yes, you can add this prominent biker to your irreversible plan at the time of application to cover the significant prices today for residence treatment or treatment in an assisted living community or assisted living facility. You could not include this biker after the policy was issued.

Boomer: If a person ends up being terminally ill, just how can life insurance help them?

Quinlan: If you are terminally ill (Twelve Month to live or much less), your plan (either term or long-term) could permit you to take out up to 60 percent of the plan’s face/death advantage to use it for any type of purpose (like what’s on your ‘container list” or pay any medical expenses that could extend your life longer without incurring financial debt) and is free of any type of revenue taxes. Review your plan to see if this provision is consisted of, or it may be a rider to your plan today at no extra premium.

Boomer: Just what recommendations to you have for any individual uncertain concerning just what remains in their policy today, or about to get a brand-new policy?

Quinlan: I recently met a financially successful lady that transferred several hundred thousand dollars right into a solitary costs life insurance policy (creating over $1 million in death benefits at her death). She called her three grandkids as recipients. Nice present for her grandkids, right? Nonetheless, she was not aware that it may have the prospective to generate a substantial tax when she as well as her spouse die. This federal tax is called the generation-skipping transfer tax obligation. Constantly rest with a knowledgeable insurance policy and tax obligation specialist to select and also understand the best type of policy for you today and also the rider(s) that will enhance your life insurance protection.


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