INDEXED UNIVERSAL LIFE INSURANCE
Click on Video Below
Interested in learning how this type of policy can benefit you? Visit our website today at:
www.moreyinsurancegroup.com, or Contact Us today!
Sunday, May 17, 2015
Video: Indexed Universal Life Insurance (IUL)
Great short video from North American Life Insurance Co., that highlights the benefits of an Indexed Universal Life (IUL) Insurance Policy.
Interested in learning how this type of policy can benefit you? Visit our website today at:
www.moreyinsurancegroup.com, or Contact Us today!
Interested in learning how this type of policy can benefit you? Visit our website today at:
www.moreyinsurancegroup.com, or Contact Us today!
Monday, February 16, 2015
Fixed Indexed Annuities (Hybrid Annuities)
A Fixed Indexed Annuity, or what I call a “Hybrid” Annuity, was
developed using attributes from three annuity types, utilizing the very best
features they have to offer, and acts something like a “personal pension. Here are some of the “Pros” of a Hybrid
Annuity:
"HYBRID"
ANNUITY Benefits:
- Income stream for life
- Secure Principal Protection
- You have control of your money
- You get a guaranteed rate of return
- Your money is not tied to market volatility
- Income that can be up to 100% tax free
- You have a potential for growth linked to a market
index upside without the market downside
- Your income can even double or triple with certain
riders
- May include riders for Long Term Care or Healthcare
costs.
With Fixed Indexed Annuities, not “One Size That Fits All”...
What’s important to recognize is that not all retirees are
the same, so one size does not fit all. You and your neighbor, who may be
retiring at the same time, may have very different, or even just slightly
different, available assets and income needs during retirement. But each of you
will need a customized strategy that’s uniquely designed for you.
When you are at the point in life that you are living off
the savings you worked for throughout your life, you should re-review your
financial goals and consider the following for yourself.
Annuities are contracts between you
and an insurance company. Annuity product guarantees rely on the financial
strength and claims-paying ability of the issuing insurer.
Annuity riders may be available for
an additional annual premium that may provide additional benefits and income
guarantees.
Most annuities have a withdrawal
(surrender) period for the first five to 15 years of ownership. Excess
withdrawals and any withdrawal prior to age 59½ may significantly reduce the
guaranteed withdrawal benefit amount and be subject to an additional 10%
federal income tax penalty.
To speak with a financial professional, specializing in retirement planning strategies and Fixed Indexed Annuities, visit our website at: www.moreyinsurancegroup.com or, send us an email at: john@moreyinsurancegroup.com
Sunday, January 11, 2015
Top Five Reasons to Consider an Indexed Universal Life (IUL) Policy
An Indexed Universal Life (IUL) policy is a unique solution for many clients that is often misunderstood.
To help with understanding an IUL, we wanted to post what we believe are the top 5 fundamental features that set IUL’s apart from the rest of the vehicles available, and why you should consider this product if . Here is our list:
1. Tax deferred accumulationTypically, the premiums paid into an IUL are Non-Qualified (after-tax) dollars and the portion of the premiums that go toward accumulation in an IUL grow on a tax deferred basis. This means you will NOT be receiving a 1099 for the growth on his/her policy every year!
2. Income tax free death proceedsOne of the most important reasons for purchasing any life insurance policy is to pass along an income tax free death benefit to your beneficiary. When the policy owner passes away, the lump sum death benefit will pass to his/her beneficiary income tax free.
3. Income tax free distributions
When structured properly, life insurance has the capability of producing non-reportable, tax free income to the client during their lifetime, which can be used for retirement income OR, funding a college education. This is accomplished by taking loans against the policy; as loans (as defined by
section 7702 and 72e of the tax code) are not subject to income taxation.
Additionally, that income is not reported or counted as income for the purposes of Social Security benefits taxation. In other words, income from your life insurance policy won’t increase the chances of your Social Security benefits being taxable.
4. Safety and security
Cash value growth inside of an IUL is pegged to market indexes (but never directly invested in the market), therefore you have a vehicle that offers you upside potential with no risk of principal loss due to market forces. How the policy credits its interest rates varies from insurance carrier to carrier and product to product, but they all have some form of a "floor and a ceiling" in between which your rates of return will fall. If chosen properly, most IUL's provide a floor that provides a protection against loss of principal.
5. Liquidity
In an IUL, your money is always working for you. And because of that, you always have a very high level of access to that money. Most of the time you have access to nearly all of your cash value in the
policy and only need to leave enough cash value in the policy to cover roughly months of charges. This high level of liquidity allows you to control your money.
Summary:
There are no other vehicles available in the marketplace today that offer all 5 of these features. It is for these reasons (and others) that the Indexed Universal Life marketplace has exploded in recent years, growing as much as 30% per year.
Want to learn if this powerful financial product is right for you? Contact us today by visiting our website at: www.moreyinsurancegroup.com, or click here to Contact Us
To help with understanding an IUL, we wanted to post what we believe are the top 5 fundamental features that set IUL’s apart from the rest of the vehicles available, and why you should consider this product if . Here is our list:
1. Tax deferred accumulationTypically, the premiums paid into an IUL are Non-Qualified (after-tax) dollars and the portion of the premiums that go toward accumulation in an IUL grow on a tax deferred basis. This means you will NOT be receiving a 1099 for the growth on his/her policy every year!
2. Income tax free death proceedsOne of the most important reasons for purchasing any life insurance policy is to pass along an income tax free death benefit to your beneficiary. When the policy owner passes away, the lump sum death benefit will pass to his/her beneficiary income tax free.
3. Income tax free distributions
When structured properly, life insurance has the capability of producing non-reportable, tax free income to the client during their lifetime, which can be used for retirement income OR, funding a college education. This is accomplished by taking loans against the policy; as loans (as defined by
section 7702 and 72e of the tax code) are not subject to income taxation.
Additionally, that income is not reported or counted as income for the purposes of Social Security benefits taxation. In other words, income from your life insurance policy won’t increase the chances of your Social Security benefits being taxable.
4. Safety and security
Cash value growth inside of an IUL is pegged to market indexes (but never directly invested in the market), therefore you have a vehicle that offers you upside potential with no risk of principal loss due to market forces. How the policy credits its interest rates varies from insurance carrier to carrier and product to product, but they all have some form of a "floor and a ceiling" in between which your rates of return will fall. If chosen properly, most IUL's provide a floor that provides a protection against loss of principal.
5. Liquidity
In an IUL, your money is always working for you. And because of that, you always have a very high level of access to that money. Most of the time you have access to nearly all of your cash value in the
policy and only need to leave enough cash value in the policy to cover roughly months of charges. This high level of liquidity allows you to control your money.
Summary:
There are no other vehicles available in the marketplace today that offer all 5 of these features. It is for these reasons (and others) that the Indexed Universal Life marketplace has exploded in recent years, growing as much as 30% per year.
Want to learn if this powerful financial product is right for you? Contact us today by visiting our website at: www.moreyinsurancegroup.com, or click here to Contact Us
Sunday, December 7, 2014
What is a Fixed Index Annuity?
I get asked this question regularly, "What is a Fixed Index Annuity"?
The main reason I get this question, is that sales of Fixed Index Annuities (FIA's) are jumping off the charts right now. Why? Because baby boomers are starting to realize that their 401(k) investments are not going to be enough to cover their income needs.
So what are FIA's? Here is some information from Allianz (leading Annuity Provider) that will be a good primer to start with:
Fixed index annuities
Fixed index annuities provide the guarantees of fixed annuities, combined with the opportunity to earn interest based on changes in an external market index. But because you're not actually participating in the market, the money in your annuity (your "principal") is not at risk.
A fixed index annuity may be a good choice if you want the opportunity for accumulation, but don't want to risk losing money in the market.
Fixed index annuities can offer:
- Principal protection
- Tax-deferred growth
- One or more index allocation options
- A choice of crediting methods
- Income options, including income for life
- Death benefit options
- Optional benefits that may help protect your retirement assets and income (available at an additional cost)
How do fixed index annuities work?
- You give the insurance company money in one or more payments.
- The insurance company then invests it on behalf of all annuity owners.
- During the accumulation phase, your annuity will earn a fixed rate of interest that is guaranteed by the insurance company.
- You defer paying taxes on your contract’s interest until you receive money from the contract. Tax-deferred interest means the money in your contract can grow faster.
- After a period of time specified by your contract, you may then receive the amount allowed by your contract in a lump sum, over a set period of time, or as income for the rest of your life. This is known as the distribution phase.
Want to learn more about Fixed Index Annuities? Visit our site today at: Morey Insurance Group, or contact us here: Contact Morey Insurance Group
Sunday, November 23, 2014
Don't Buy Term Life Insurance!!
By far the most popular topic I have written on so far has been Term Insurance With Living Benefits, so I thought I would follow up on this concept and highlight some of the benefits.
To make sure everyone is caught up, Term Life Insurance is just that... Life Insurance that lasts for a specified length of time, or "term". Most commonly, this is used to cover a specific need for a period of time. Here are some examples:
1. A young family buys a house and has a mortgage on that house. Let's say they are 35 years old and they have a 30 year mortgage on their new house for $300,000. The main breadwinner in the family wants to make sure that if something should happen to him / her, then the spouse would have enough money to pay off this mortgage. So, they purchase a 30 year Term Life Insurance policy for $300,000.
2. Another good example for Term Life Insurance, is a young family with dependent children still in the house. Term Life Insurance is often purchased to make sure there is enough money for the surviving spouse to care for the children and maybe even their college educations in the event that one of the parents dies. For this purpose, the couple should consider several factors, such as the number of children and their respective ages, which will tell them first, the "term" that they need to cover their family, assuming the children are self sufficient at some point in the future. Next, they would determine the amount of money needed to provide the lifestyle and education the family wants to provide should one of the parents die. Some things this couple should consider would be, mortgage / rent, living expenses, transportation, education, etc... The amount of the insurance policy (face amount) and term of the policy, will be unique to each family, based on the couples specific requirements and goals.
The reason for my post titled "Don't Buy Term Life Insurance" is because insurance companies have recently started bundling Living Benefits into their Term Life Insurance products. For the same reasons you would buy Term Life Insurance (loss of income due to a death), you should consider Term Life Insurance with living benefits to cover you in the event of the following conditions:
1. Chronic Illness
2. Critical Illness
3. Terminal Illness
Any of these three conditions listed above can seriously affect your family, should you find yourself in this situation for 6-12 months and are not able to generate the income that your family counts on to pay living expenses.
Term Life Insurance with Living Benefits allows you to use the money from your life insurance policy to help cover costs associated with Chronic, Critical and /or Terminal Illness, at a time when you need the help vs. just the traditional benefit of simple Term Life Insurance that only pays a benefit when you die.
One nice surprise about Term Life Insurance with Living Benefits is that you will find the monthly payments (premiums) to be just slightly higher than traditional term insurance, but in my opinion, worth every penny for the added benefits.
On my website (www.moreyinsurancegroup.com), I have more information that you can read and download on this topic. Transamerica is the company that I recommend with most of my clients and you can find their brochures on my site as well, just follow this link: Term Life Insurance with Living Benefits
If you would like to talk with one of our experts, you can find our contact information on our website as well at: Contact Us
To make sure everyone is caught up, Term Life Insurance is just that... Life Insurance that lasts for a specified length of time, or "term". Most commonly, this is used to cover a specific need for a period of time. Here are some examples:
1. A young family buys a house and has a mortgage on that house. Let's say they are 35 years old and they have a 30 year mortgage on their new house for $300,000. The main breadwinner in the family wants to make sure that if something should happen to him / her, then the spouse would have enough money to pay off this mortgage. So, they purchase a 30 year Term Life Insurance policy for $300,000.
2. Another good example for Term Life Insurance, is a young family with dependent children still in the house. Term Life Insurance is often purchased to make sure there is enough money for the surviving spouse to care for the children and maybe even their college educations in the event that one of the parents dies. For this purpose, the couple should consider several factors, such as the number of children and their respective ages, which will tell them first, the "term" that they need to cover their family, assuming the children are self sufficient at some point in the future. Next, they would determine the amount of money needed to provide the lifestyle and education the family wants to provide should one of the parents die. Some things this couple should consider would be, mortgage / rent, living expenses, transportation, education, etc... The amount of the insurance policy (face amount) and term of the policy, will be unique to each family, based on the couples specific requirements and goals.
The reason for my post titled "Don't Buy Term Life Insurance" is because insurance companies have recently started bundling Living Benefits into their Term Life Insurance products. For the same reasons you would buy Term Life Insurance (loss of income due to a death), you should consider Term Life Insurance with living benefits to cover you in the event of the following conditions:
1. Chronic Illness
2. Critical Illness
3. Terminal Illness
Any of these three conditions listed above can seriously affect your family, should you find yourself in this situation for 6-12 months and are not able to generate the income that your family counts on to pay living expenses.
Term Life Insurance with Living Benefits allows you to use the money from your life insurance policy to help cover costs associated with Chronic, Critical and /or Terminal Illness, at a time when you need the help vs. just the traditional benefit of simple Term Life Insurance that only pays a benefit when you die.
One nice surprise about Term Life Insurance with Living Benefits is that you will find the monthly payments (premiums) to be just slightly higher than traditional term insurance, but in my opinion, worth every penny for the added benefits.
On my website (www.moreyinsurancegroup.com), I have more information that you can read and download on this topic. Transamerica is the company that I recommend with most of my clients and you can find their brochures on my site as well, just follow this link: Term Life Insurance with Living Benefits
If you would like to talk with one of our experts, you can find our contact information on our website as well at: Contact Us
Sunday, November 2, 2014
Term Life Insurance with Living Benefits
Recent studies show that nearly half of all Americans suffer from at least one chronic illness, and many of these people have one or more daily activity limitations.
Chronic diseases—such as heart disease, stroke, cancer, diabetes, and arthritis—are among the most common and costly of all health problems in the U.S., and are also the leading causes of death and disability.
You may not have considered it until now, but more and more people are learning that certain types of life insurance can play an important role in protecting their family’s financial future when an unexpected chronic, critical or terminal illness happens.
Term life insurance is one of the most important things you can put in place to provide financial protection for your family if you were to pass away unexpectedly. But did you know that Term Life Insurance with Living Benefits gives you early access to policy benefits to help pay your bills should you become stricken with a chronic, critical or terminal illness—even if you already have health insurance or Medicare coverage?
One of the best products I offer for this type of coverage is the Trendsetter® LB term Life Insurance from Transamerica Life Insurance Company. The monthly premiums are just slightly higher than traditional term life insurance and the added benefits are more than justified.
Before you jump at the lowest premium you can find for Term Life Insurance, take a closer look at Term Life Insurance with Living Benefits on our website at: www.moreyinsurancegroup.com
Chronic diseases—such as heart disease, stroke, cancer, diabetes, and arthritis—are among the most common and costly of all health problems in the U.S., and are also the leading causes of death and disability.
You may not have considered it until now, but more and more people are learning that certain types of life insurance can play an important role in protecting their family’s financial future when an unexpected chronic, critical or terminal illness happens.
Term life insurance is one of the most important things you can put in place to provide financial protection for your family if you were to pass away unexpectedly. But did you know that Term Life Insurance with Living Benefits gives you early access to policy benefits to help pay your bills should you become stricken with a chronic, critical or terminal illness—even if you already have health insurance or Medicare coverage?
One of the best products I offer for this type of coverage is the Trendsetter® LB term Life Insurance from Transamerica Life Insurance Company. The monthly premiums are just slightly higher than traditional term life insurance and the added benefits are more than justified.
Before you jump at the lowest premium you can find for Term Life Insurance, take a closer look at Term Life Insurance with Living Benefits on our website at: www.moreyinsurancegroup.com
Sunday, October 19, 2014
Researching Life Insurance Options??
Are you researching options for Life Insurance?
Have you heard the ads on the radio and TV suggesting low cost options for Term Life Insurance or Whole Life Insurance?
Are you confused with information you have read online, or worse, information you received from a friend? Let's face it, researching Life Insurance options that fit your particular needs is a little challenging right?
When I grew up, I was always taught "Buy Term Insurance, and invest the rest". The "rest" led to a discussion about putting your money into Mutual Funds. I followed and preached that message for years, until I got my insurance license and started meeting with clients that followed that direction and I saw first hand how that strategy actually worked (or didn't!) for them.
What I saw was older clients (60+), that for 20+ years, had paid monthly premiums into term insurance policies that were now expiring or, they had been notified that their premiums that were doubling or tripling, and they could no longer afford them. An eye opener for me was to see the harsh reality of 20+ years of paying into an insurance policy with nothing to show for it! Not to mention those Mutual Funds that didn't exactly perform the way they were advertised...
What I discovered, is that Term Life Insurance doesn't work for a lot of people, particularly when working with the 55 and over market. I realized that I needed to find other products that fit for my clients and what I found was that basic, low cost, term life insurance is really not a good product, regardless of the age of my clients.
My recommendation, before you jump to apply for a low cost Term Insurance quote, do yourself a favor and at least look at these options:
1. Term Insurance with Return of Premium (ROP). If you are sold on term life insurance, at least look at a product that returns your premiums to you after 15-20 years. Yes, all of your premiums!
2. Term Insurance with Living Benefits. This is a product that provides an option for you to use the money in your life insurance policy to pay for critical or terminal illnesses that may arise. Good option for you to have peace of mind that you have money available should you encounter this situation.
3. Universal Life Insurance. These are permanent insurance policies that can not only provide a death benefit for your loved ones, but they can actually provide a college savings plan and/or a retirement income plan. Want something to show for your monthly premiums after 15-20 years? You will be amazed at the potential benefits of these products.
4. Whole Life Insurance. These policies are permanent insurance policies that accumulate cash value that can be borrowed against for unexpected expenses down the road.
Want to learn more? Visit my website at: www.moreyinsurancegroup.com Here, I have information, videos, free downloads and links for you to check out, no strings attached.
Once you have a chance to explore some options that might work for you, give us a call and let one of our licensed agents help you navigate your options through our network of insurance carriers. You can contact us by following this link: Contact Morey Insurance Group
Have you heard the ads on the radio and TV suggesting low cost options for Term Life Insurance or Whole Life Insurance?
Are you confused with information you have read online, or worse, information you received from a friend? Let's face it, researching Life Insurance options that fit your particular needs is a little challenging right?
When I grew up, I was always taught "Buy Term Insurance, and invest the rest". The "rest" led to a discussion about putting your money into Mutual Funds. I followed and preached that message for years, until I got my insurance license and started meeting with clients that followed that direction and I saw first hand how that strategy actually worked (or didn't!) for them.
What I saw was older clients (60+), that for 20+ years, had paid monthly premiums into term insurance policies that were now expiring or, they had been notified that their premiums that were doubling or tripling, and they could no longer afford them. An eye opener for me was to see the harsh reality of 20+ years of paying into an insurance policy with nothing to show for it! Not to mention those Mutual Funds that didn't exactly perform the way they were advertised...
What I discovered, is that Term Life Insurance doesn't work for a lot of people, particularly when working with the 55 and over market. I realized that I needed to find other products that fit for my clients and what I found was that basic, low cost, term life insurance is really not a good product, regardless of the age of my clients.
My recommendation, before you jump to apply for a low cost Term Insurance quote, do yourself a favor and at least look at these options:
1. Term Insurance with Return of Premium (ROP). If you are sold on term life insurance, at least look at a product that returns your premiums to you after 15-20 years. Yes, all of your premiums!
2. Term Insurance with Living Benefits. This is a product that provides an option for you to use the money in your life insurance policy to pay for critical or terminal illnesses that may arise. Good option for you to have peace of mind that you have money available should you encounter this situation.
3. Universal Life Insurance. These are permanent insurance policies that can not only provide a death benefit for your loved ones, but they can actually provide a college savings plan and/or a retirement income plan. Want something to show for your monthly premiums after 15-20 years? You will be amazed at the potential benefits of these products.
4. Whole Life Insurance. These policies are permanent insurance policies that accumulate cash value that can be borrowed against for unexpected expenses down the road.
Want to learn more? Visit my website at: www.moreyinsurancegroup.com Here, I have information, videos, free downloads and links for you to check out, no strings attached.
Once you have a chance to explore some options that might work for you, give us a call and let one of our licensed agents help you navigate your options through our network of insurance carriers. You can contact us by following this link: Contact Morey Insurance Group
Subscribe to:
Posts (Atom)