Universal Life (UL) plans are a simple way to address both needs of final expenses and/or long term care costs within a single policy. It's wise to plan for long-term care when you're still active and healthy due to the fact that this care is often very expensive and is not covered under private medical insurance.
"Combined protection" is the best way to define Universal Life Insurance Plans that are paired with Accelerated Death Benefit (ADBR) and Long-Term Care (LTC) Riders. By adding ADBR or LTC riders to a UL Insurance policy, you'll have tax-favored coverage should you need it to pay for future assistance with the basic activities of daily living such as: bathing, dressing, and eating. ABDR or LTC rides will also help if you were to ever require substantial supervision due to cognitive impairment.
The good news is, with these policies you can use all of it, some of it, or none of it. Any un-used portion of the death benefit remains with your policy and is paid to your beneficiaries upon death. Helping clients plan for their future is our number one priority. Reach out to one of our knowledgeable advisors to start this planning today!
Annuities are products that provide a safe place to put your money and are sold by insurance companies. Annuities help millions of people prepare for retirement and can offer a steady stream of income during retirement. Annuities generally fall into two distinct categories: tax-deferred and immediate income. Annuities are also a great option to bank Certificates of Deposits (CD's) and can help increase savings, protect current savings, or generate a stream of income that can never be out-lived.
1. Tax-Deferred Annuities: offer a guaranteed rate of return for a number of years. They may be more suitable for conservative investors, or for those interested in protecting assets from market volatility. In this way, they're similar to CD's.
2. Immediate Income Annuities: offer a guaranteed, predictable payment for life, or for a certain period of time. The guaranteed income payment cannot be affected by market volatility, which helps shield retirement income from market risk.
An annuity is a long-term retirement savings product that can help protect you from outliving your money. It has the potential to grow tax-deferred, incorporates death benefits to protect your beneficiary, and offers optional benefits to protect your retirement income. You can choose how to fund your annuity, how interest is credited to it, and how you take payments from it.
What can an annuity do for you?
• Growth Potential: A fixed indexed annuity has the potential for higher interest earnings than a traditional-fixed annuity with a guaranteed minimum interest-crediting rate. There is also no downside market risk to your money (if held through the withdrawal charge period).
• Sleep Better at Night: A fixed indexed annuity can help you save money on a tax-deferred basis and can guarantee that you will receive income for life. No matter how long you live, you won't outlive your retirement income.
• Fills in the Gaps: Sometimes pensions, IRAs and Social Security don't provide enough income to help you live the way you want during retirement. A fixed indexed annuity can help supplement your retirement income.
When you might need it:
• You're Saving for Retirement: If you're already contributing the maximum amount of money to other retirement plans, such as an IRA or 401(k), a fixed indexed annuity is an attractive retirement planning option that grows tax-deferred.
• You Won't Need this Money Soon: If you don't anticipate needing the money from a fixed indexed annuity prior to the time you turn 59½, then a fixed indexed annuity may be a good option for you.
• You're Worried You Might Outlive Your Savings: Annuities can provide guaranteed income for the rest of your life, whether you live to be 100 or even 120. It could happen.
• You Want to Leave a Legacy: With an annuity, you can provide your loved ones with a death benefit in the event of your death while avoiding probate. An annuity states where you control/direct your assets to those beneficiaries of your choice and avoid costly probate costs.
We often suggest that you keep these things in mind when talking with one of our local advisors. Annuities can provide safety, they help avoid probate, and offer tax-deferred income, liquidity, and a competitive interest. Start this planning today, and contact one of our agents to help outline different these different options.