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



 

Video: What is the Difference Between Term and Permanent Life Insurance?

If you want to learn the difference between Term Life Insurance and Permanent Life Insurance (Whole Life or Universal Life Insurance), I have just posted a brief 3 minute video that will give you a good starting point to answering this question.

Check out the short video here:  Morey Insurance Group / Term Life Insurance

For more detailed information on options for term and permanent life insurance, be sure to visit our site at:  www.moreyinsurancegroup.com

Beginners Guide To Annuities

Just uploaded a great new document that you can download for free on my website.  This is an excellent guide for anyone looking to learn more about the various types of annuities that are available today.

Check out the document on my site at: http://www.moreyinsurancegroup.com/annuities/ 

Fixed Indexed Annuities are a great option when you consider all the options, but start by reading the guide and feel free to contact us if you would like to discuss your options for your retirement income.

You can contact us by visiting our site at:  www.moreyinsurancegroup.com

Whole Life Insurance Video Overview

I just added a new video on my site that talks about the benefits of a Whole Life Insurance policy.  Check it out below (click on the image):

Or, visit our site and check out the video here:  Benefits of Whole Life Insurance  

You can also visit our main site at:  www.moreyinsurancegroup.com  

What are Immediate Annuities?

Understanding Immediate Annuities

A Single Premium Immediate Annuity (sometimes referred to as an "SPIA") may be the right annuity for you if you are looking for payments that begin right away and continue for the rest of your life or for a specified period of time.

In return for your lump sum (premium), the insurance company promises to make regular payments to you (or to a payee you specify) for the chosen length of time – most commonly for the remainder of your life, however long that may be.

Depending on your requirements, immediate annuity payments start one month after you buy your annuity. When choosing an immediate annuity, you can choose how frequently you receive payments – often referred to as the “mode.” While annuity buyers typically choose to receive payments monthly, you may choose quarterly, or even yearly instead.

In exchange for the guarantee of payments, you give up the right to demand the return of your original premium. Unlike some forms of life insurance or other types of annuities, you are generally unable to revise or cash in the immediate annuity once the 10-day "free look" period has passed.

You can fund your immediate annuity in a number of ways, including cash from a maturing Certificate of Deposit (CD), exchanging monies accumulated in a Deferred Annuity account, proceeds from the sale of stocks, bonds, a home or a business, a lump sum distribution from a tax-qualified defined benefit or 401k, or an IRA account.

An immediate annuity comes with many important advantages. Here are just a few:

·         Security — The annuity provides stable lifetime income which can never be outlived, or which may be guaranteed for a specified period. This advantage is crucially important to annuitants who may have previously feared outliving their savings.

·         Simplicity — An annuity is pretty much “get it and forget it.” Once it is set, the only work you are required to do is collect your regular payments. With an immediate annuity, you do not need to watch markets or track interest rates and dividends.

·         Higher Returns — The interest rates used by insurance companies to calculate immediate annuity income are generally higher than CD or Treasury rates. Since part of the principal is returned with each payment, greater amounts are received than would be provided by interest alone.

·         Safety of Principal — Funds are guaranteed by assets of insurer and not subject to the fluctuations of financial markets.

·         No sales or administrative charges

When you shop for an immediate annuity, you will find that one of the key factors in pricing is your age and life expectancy. In a sense, purchasing an immediate annuity is like making a bet with an insurance company about how long you will live. Since the insurer will stop making payments when you die, it is betting that you won't live beyond your life expectancy. On the other hand, if you live longer than predicted, your return may be far greater than estimated.

Immediate annuity coverage can be increased by including a second person ("Joint and Survivor" annuity), by adding a guaranteed period of time ("Period Certain" annuity), or by guaranteeing that payments will continue at least until the original purchase amount has been paid out ("Refund" annuity). This added risk to the insurer is likely to reduce monthly payments by about 5% to 15%, depending on the age of the annuitants and the length of the guarantee period.

The way your annuity payments are taxed depends upon the source of the funds you use to purchase it.

Qualified Immediate Annuities

When applied to immediate annuities, the term qualified refers to the tax status of the source of funds used for purchasing the annuity. These are premium dollars which until now have "qualified" for IRS exemption from income taxes. The whole payment received each month from a qualified annuity is taxable as income (since income taxes have not yet been paid on these funds). Qualified annuities may either come from corporate-sponsored retirement plans (such as Defined Benefit or Defined Contribution Plans), Lump Sum distributions from such retirement plans, or from such individual retirement arrangements as IRAs, SEPs, and Section 403(b) tax-sheltered annuities, or Section 1035 annuity or life insurance exchanges.

Non-qualified Immediate Annuities

Non-qualified immediate annuities are purchased with monies which have not enjoyed any tax-sheltered status and for which taxes have already been paid. A part of each monthly payment is considered a return of previously taxed principal and therefore excluded from taxation. Non-qualified annuities may be purchased by employers for situations such as deferred compensation or supplemental income programs, or by individuals investing their after-tax savings accounts or money market accounts, CD's, proceeds from the sale of a house, business, mutual funds, other investments, or from an inheritance or proceeds from a life insurance settlement.

Want more information?  Contact us today, Call our office at 844-313-4752, or visit our website for more detailed information on which annuity is best suited for you.  

www.moreyinsurancegroup.com  

Using Annuities To Fund Life Insurance?

You may have used annuities as a savings vehicle as part of your financial plan.  However, now you may find that you no longer need the money in the annuity and you want to pass the money on to your heirs.

But, did you know that the gains on your annuity (the portion that exceeds your original investment), could be taxable income to your heirs?  In addition, the full value of your annuity is included in your taxable estate, which could result in a diminished inheritance.

To maximize your annuity dollars, one strategy is to purchase a single premium life insurance policy on your life with the annuity funds.  The beneficiaries of the policy would then be paid a generally tax-free death benefit and avoid the taxes associated with inheriting annuity funds.

If you are interested in learning more about this strategy, visit our annuity resource page today.  Click Here for more information:  Strategies for Fixed Indexed Annuities

Fixed Indexed Universal Life Insurance

Fixed Indexed universal life insurance (FIUL) is permanent life insurance that offers death benefit protection when death occurs.  Like other forms of permanent life insurance, your premium payments may earn interest and grow the cash value of your policy.

What differentiates IUL from other permanent life insurance is the way interest is credited to the policy. In addition to offering a traditional declared interest rate, FIUL also offers the ability to earn interest that is linked to the movement of a selected stock market index over a specific period of time.

The manner in which interest is credited to your FIUL policy gives you the potential for strong cash value accumulation. A key benefit to remember is that it offers protection in a poorly performing market.

With Fixed Indexed Universal Life Insurance, you don’t participate directly in the stock market and the credited interest rate is never less than zero percent, guaranteed.

Read more here:  Fixed Indexed Universal Life Insurance