DON’T POSTPONE THE DECISION TO PURCHASE LIFE INSURANCE

For most people, death is not an easy subject. It is uncomfortable thinking about no longer being alive, not seeing one’s children grow up, leaving one’s family -- perhaps a husband or wife, children, brothers and sisters, parents, and friends. Yet death is one common factor that binds the entire human family. We might not all be rich and famous, and in fact might be important only to our family and close friends; yet what happens to the rich and famous happens to the not-so-rich and obscure: Eventually we will all die.

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It is easy for most people to put aside thoughts of dying as something that happens to other people; or if they think of it happening to them, only think of it as happening some time in the distant future. Maybe that will be your future, but maybe not. In the blink of an eye, you might go from apparently having years of life ahead to being killed in a car accident. Death is not something that happens only to old people, nor only to people after a long illness. No one is invincible.

Although it might be tempting to put off getting Life insurance until you are older, Life insurance is much less expensive when you are younger. Younger people are typically healthier, which usually translates into lower insurance rates. If you buy a Permanent Life insurance policy, the premium rate you sign up to pay at the beginning will stay the same for the life of the policy, even as you get older, and even if your health deteriorates. This is why it is important to get the policy when you are young -- the rates are lowest then!

The question is not, “If I die ... ” but rather becomes, “When I die ... ” When it comes to your financial and familial responsibilities, how would you answer that? When you die, what will happen to your family? What will happen with your debts? Are they prepared to assume your financial responsibilities after your death? Or are you prepared to take care of them even after you die? You might not be able to save up enough money today or even in the near future for you to pay off all of your debts; however, you can buy enough insurance to pay off all your debts, in the event of your death, so that your family will not be burdened by it.

Although you as a person are irreplaceable, your income can be replaced with Life insurance. If yours is the main income in your family, this is vital. However, even if you don’t produce an income, but provide services in your family that would take money to replace (such as caring for young children), having Life insurance would still be wise. Having Life insurance to cover your debts and to take care of those you leave behind is the caring thing to do. Contact one of our qualified insurance professionals today to determine the type and amount of coverage that’s suitable to your unique circumstances.

EXERCISE EXTREME CAUTION BEFORE BUYING LIFE INSURANCE DIRECT

When you are considering Homeowners or Auto insurance, you probably count on your insurance agent to assist you in understanding the many options available. For instance, what deductible should you choose? Should you pay for emergency road service or not? Should your teenager have his or her own policy? How much coverage do you need? You value this relationship, but you are wondering if you might get a better deal on your Life insurance if you buy direct and cut out the middleman.

Although it is possible that you might attain a better price, it is also likely that you might not. More importantly, you might get what appears on the surface to be a better deal, but on closer examination is not as good as you originally thought.

If you call a Life insurance company and apply over the telephone for the Life insurance they quote you, you might be in for several surprises, either now or later.

First, cutting out your insurance professional does not always result in a lower Life insurance premium. It does, however, mean that you will have to depend on an 800 number and the person answering the phone. As with any telemarketing organization, there is often high turnover in these positions, so you might never develop a relationship you can rely on.

Second, you should be warned that all “comparable” policies are not created equal. Although insurance plans might appear the same on the surface, when you examine the details, there could be extensive differences. The period where the premium stays the same (for Term Life) might vary; the guaranteed and current interest rates might vary (for Universal Life); the investment options might not meet your needs (for Variable Life); and the interest/dividend crediting might not be what you think (for Whole Life). There are many riders, options, and other features that can make one plan more suited to your needs. Unless you know about these options and can tell the voice at the other end of the phone exactly what you need and want, you might end up with the wrong insurance policy altogether.

Third, your trusted insurance professional knows you and understands your needs. Someone you have never talked to before might not know about your disabled daughter, your planned pregnancy, or your need for spousal insurance. If they don’t know you, how will they know to ask about these things? An advisor who knows you and your family is in a much better position to make sure you obtain both the right type and right amount of Life insurance. They can also decrease the likelihood that you are surprised, after underwriting, with a much higher premium than you were originally quoted.

Fourth, you might have existing Life insurance that can be adapted to meet your current needs. This reduces or avoids underwriting and might save lots of money in new premiums.

Your financial situation is complex as well as ever-changing. Working with a professional who knows you and can meet with you face-to-face can help you avoid problems, and might help prevent costly mistakes when you are buying Life insurance.

SECURE YOUR RETIREMENT INCOME WITH IMMEDIATE ANNUITIES

As you approach retirement, it’s natural to worry about your retirement portfolio. It is also natural to become frightened during a recession, such as the ongoing downturn that started in 2008. During tough times, your entire strategy can suddenly become worthless. The supply of cash that you have carefully built over your working life is gone, vanished like so much dust. This is downright scary. What shall you do? Many individuals in this same situation end up taking part-time jobs in order to support themselves.

An immediate annuity can help you regain liquidity. Buying an annuity is like buying a monthly pension check. It is an insurance policy that pays you a lifelong income stream in exchange for a lump sum. There is no age limit for purchasing an immediate annuity; you can buy one at age 80 or 90 if you want. When the payments start is entirely up to you. Once you decide on a date, the payments are orderly and on time, appearing on that date every month for the rest of your life.

Consider several advantages to immediate annuities:

• Your insurance agent will be able to tell you what the monthly payment amount is based on your lump sum.
• The annuity is backed by the financial security and assets of an insurance company, so do your research before buying.
• This product affords you, the beneficiary, immediate peace of mind since the payments start when you choose. You can rest completely assured of a secure, stable long-term monthly income. You can even add an inflation rider to the policy so that your income will not get eaten by inflationary pressures.
• Since immediate annuities are different from stocks and bonds, there is no worry about volatility or market fluctuations. The value of the annuity remains constant. You have the protection of knowing that every month; the money will be deposited into your bank account.
• There are no fees of any kind to be paid - no management fees, no setup or administrative fees, and no annual fees.
• Favorable tax treatment - Only a small portion of income generated from an immediate annuity funded with after-tax dollars would be taxable. This is because part of every payment is considered a return of principal.

Is an immediate annuity right for you? That depends on your unique needs, of course. For those seeking to secure a future income stream, immediate annuities are a perfect way of achieving a guaranteed monthly income which will not fluctuate due to external forces. The peace of mind possible with having an income stream one cannot outlive should not be ignored.

Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1⁄2, may be subject to a 10% federal income tax penalty. Guarantees and payment of lifetime income are contingent on the claims paying ability of the issuing insurance company.