LIFE INSURANCE: A FLEXIBLE TOOL WHEN FINANCIAL PLANNING FOR RETIREMENT PROVIDING FINANCIAL SECURITY - NOW AND LATER Learn how life insurance can provide benefits for you and your loved ones now and in the future.
IF YOU HAVE ANY QUESTIONS PLEASE REACH OUT TO US!
FOREWORD Thank you for your time and interest. This booklet was created as an educational guide with the intent to bring you greater clarity and understanding of the financial decisions you make. If you need more information on a subject discussed, we welcome your email and attempt to get you the answers you need. Please be mindful that as you read this, everyone’s financial situation is different. So any product or solution must match your specific financial picture. We strongly recommend you consult with a highly-rated professional about every financial decision you make. Because, just as not all products are created equal, neither are all financial professionals, and the difference in knowledge and advice can be substantial from one advisor to another. Working with a highly knowledgeable, independent, well-rated professional can make all the difference in the results you achieve. If you are ready to explore your retirement options and want some help cutting through the clutter and jargon, visit www.CertifiedSafeMoney.com for unbiased information and to connect with professionals who can answer all of your most pressing questions. If you ever have feedback related to this booklet or concerns about your retirement income and financial security, please email us at [email protected]. We’re happy to help. CSM202101LIFEINS 3 [email protected] www.certifiedsafemoney.com
HOW LIFE INSURANCE CAN COMPLETE YOUR FINANCIAL PLAN Life insurance can be an integral component of almost all financial plans. Although most people don’t like to think about the unexpected, the truth is that illness and accidents can and do occur – and when they do, life insurance can provide those you love and care about with a financial “safety net.” Because of this financial cushion that is received by way of life insurance benefits, your loved ones could still be able to pay the rent or mortgage, put food on the table, and even achieve future goals like paying for a child’s or grandchild’s college tuition. But are life insurance policies safe? While one type of coverage can solve certain needs, others may not work well. Because of that, knowing what types of life insurance coverage exist can be the first step towards matching up protection with your specific objectives. WHAT LIFE INSURANCE REALLY DOES Rather than dwelling on what life insurance is called, it is better to consider what this versatile and flexible, “safe money” financial tool does. You can use a relatively small amount of premium to leverage a significant amount of income tax-free benefit to your intended recipient(s). One common misconception is that life insurance coverage is only necessary when an individual has dependents counting on their income for their support. Life insurance can have various uses in the best retirement strategies or financial strategies at any age. The payment of estate taxes, funeral and other final expenses, charitable giving, and efficiently transferring assets to survivors are all practical uses. Further, because life insurance proceeds are paid out directly to a named beneficiary, these funds won’t have to go through the costly, time-consuming, and public process of probate – which can often reduce your estate by 10-15%. Further, this “instant liquidity” could prevent your loved ones from having to sell other assets or drain accounts to pay the taxes that come due – or even worse, put these expenses on credit. With that in mind, your survivors can have cash from a life insurance policy in hand quickly so that they don’t have to worry about financial matters during an already difficult time. CSM202101LIFEINS 4 [email protected] www.certifiedsafemoney.com
THE MANY USES FOR LIFE INSURANCE Although many people know that the insured’s survivors can use a life insurance death benefit for paying off debt and continuing to pay their daily living expenses, there are other uses to consider when choosing to buy a life insurance policy, such as: • Business continuation planning. With a properly structured business continuation plan, life insurance proceeds can provide the business’s funding to change hands when the current owner passes away. For instance, with a buy-sell agreement, the remaining business owners or partners (who are named the beneficiaries in the life insurance policy) can utilize these funds to buy out the deceased owner’s share of the company. If there is no definitive successor for the business, the life insurance policy proceeds can instead be used to keep the company operating while a new owner is being sought. • Gifting to charity. Life insurance can also be used for leveraging donations to a favorite charity. For example, by naming a charitable organization as the policy’s beneficiary, large donations may be made using pennies on the dollar. • Leaving a legacy. Leaving a legacy is a primary goal of many people. Because life insurance proceeds can create an “instant estate,” survivors could essentially benefit for multiple generations to come. CSM202101LIFEINS 5 [email protected] www.certifiedsafemoney.com
THE COMPONENTS OF A LIFE INSURANCE POLICY Life insurance policies are contracts between an individual (or more than one individual) and an insurance company. In this instance, in return for the payment of a premium, the insurance company is obligated to pay a certain amount of proceeds (income tax-free) to a named beneficiary(ies) upon the death of the insured – provided that the policy is in force at the time of his or her death. In addition to the insurance company, there are three key parties involved in a life insurance policy or contract. These include the: • Owner – The owner of a life insurance policy is the individual or entity that purchased the coverage on the insured’s life. • Insured – The insured is the individual whose life the policy – and the payout of the death benefit proceeds – is based. • The beneficiary is the individual (or individuals) who will receive the death benefit proceeds upon the death of the insured. While the owner and the insured may be the same person, this is not always the case. Likewise, the owner and the beneficiary could – but do not have to be – the same individual. In any case, though, to own life insurance on another individual, insurable interest is required. This exists when the death of one person would negatively impact another from a financial standpoint. An example here could be a married couple where one spouse’s death could cause the other to suffer financially, and in turn, have trouble maintaining his or her standard of living (such as making the rent or mortgage payment, raising children, etc.) Likewise, a business owner could have many employees who rely on the company for their financial support. So, if the owner suddenly passes away, it could leave the business’s future in limbo unless there is a way to keep it going while a new leader is sought. CSM202101LIFEINS 6 [email protected] www.certifiedsafemoney.com
TYPES OF LIFE INSURANCE Although there are many life insurance variations today, there are two main categories of coverage: term and permanent. Term Life Insurance Term life insurance offers death benefitonly coverage, without any associated cash value or investment buildup. These policies remain in force for a certain amount of time, or “term,” such as ten, twenty, or even thirty years. Many insurance carriers offer a oneyear renewable term life insurance option, too. This is the most basic, plain vanilla type of life insurance protection available. The premium for term life insurance is often quite low, especially if the insured is young and in good health when purchased. Suppose the insured wants to continue the coverage after the initial time frame, or term, has elapsed. In that case, the premium will likely rise significantly, particularly if he or she is in poor health or their then-current age is older(and subsequent shorter life expectancy). The Different Forms of Term Life Insurance There are multiple variations of term life insurance coverage, including: • Level Term – With a level term life insurance policy, the amount of coverage remains the same, and the amount of the premium is also guaranteed to stay the same throughout the time frame of the contract. • Decreasing Term – As its name suggests, the coverage on decreasing term life insurance decreases over time. This could be used to cover the payoff of one’s mortgage balance – which also goes down throughout the years. • Increasing Term – An increasing term insurance policy has coverage that goes up over time. Typically, the amount of the premium for this type of policy will also rise. • Renewable Term – A renewable term life insurance policy allows the coverage to continue for a set period without the insured having to re-qualify for new coverage. • Convertible Term – Convertible term can be converted into permanent life insurance coverage at a future date. Often the insured will not have to provide evidence of insurability if he or she converts within the allocated window of time. If your company offers life insurance benefits to its employees, you may have group term coverage. Typically, group term life insurance requires no underwriting, so even if a group member has a health condition, it won’t impact their ability to be covered. In most cases, though, the amount of the death benefit with a group life insurance plan won’t provide enough to cover all of your survivors’ financial needs. Also, if you leave the employer, you will usually have to forfeit your insurance coverage, too. CSM202101LIFEINS 7 [email protected] www.certifiedsafemoney.com
Term Life Insurance Advantages Term Life Insurance Disadvantages Low premiums Temporary coverage Income tax-free death benefit Premium can increase when coverage is renewed. Possibly convertible to permanent coverage No cash value/savings component Pros and Cons of Term Life Insurance Who is a Good Candidate for Term Life Insurance Coverage? Although term life insurance isn’t right for everyone, you could be a good candidate for this type of coverage if you: • Don’t have a large budget for a life insurance premium payment • Have a “temporary” need, such as a mortgage balance or college funding needs • Are not interested in building up taxdeferred cash value • Plan to convert the low-priced term policy in the future to a permanent life insurance policy Permanent Life Insurance Permanent life insurance policies have death benefit protection and a cash value component. As long as the premium is paid, permanent life insurance coverage will remain in force – regardless of the insured’s increasing age or any adverse health issues they may contract after purchasing the policy. This cash grows on a tax-deferred basis. Therefore, no tax is due on the gain unless or until the funds have been withdrawn. The cash value portion of a permanent life insurance policy can be accessed for any reason – including supplementing retirement income, paying off high-interest debt, or making high-ticket purchases such as a new vehicle, or paying for a nice vacation. As with term insurance, there are many different types of permanent life insurance, including: • Whole Life Insurance • Universal Life Insurance • Indexed Universal Life (IUL) Insurance • Variable Life Insurance • Variable Universal Life (VUL) Insurance • Survivorship Life Insurance CSM202101LIFEINS 8 [email protected] www.certifiedsafemoney.com
Whole Life Insurance Whole life insurance is considered the simplest form of permanent life insurance coverage. This type of policy offers death benefit protection, as well as a cash value component. This cash grows tax-deferred at a rate that is set by the insurance company. Although the premium on a whole life insurance policy is typically higher than that of a comparable term insurance policy, the amount is locked in and guaranteed not to increase with whole life insurance (whereas term life insurance premiums can rise significantly – especially if the insured has contracted an adverse health condition before he or she renews their term life coverage). The cash may be accessed at any time by the policyholder via withdrawal or a loan. Repaying a policy loan is not required. But, if the loan has not been fully repaid at the time of the insured’s death, it will decrease the amount of death benefit that the policy’s beneficiary ultimately receives. There are different variations of whole life insurance policies that are available in the marketplace today, such as: • Participating Whole Life - A participating whole life insurance policy will share the insurance company’s excess profits with its policyholders. This can be accomplished by providing dividends. The policyholder will not be taxed on the dividend because they are considered a return of a portion of the policy’s premiums. • Non-Participating (Non-Par) - With a non-participating whole life insurance policy, the insurance company will assume all future performance risks. This means that if the insurer’s actuaries have underestimated future claims’ cost, the insurance company will need to make up the difference. If, however, the cost of the insurer’s future claims has been overestimated, then the insurance company may keep this difference. These whole life insurance policies do not pay dividends to their policyholders. CSM202101LIFEINS 9 [email protected] www.certifiedsafemoney.com
Whole Life Insurance Advantages Whole Life Insurance Disadvantages Cash value/savings buildup Higher initial premium than a comparable term life insurance policy Tax-deferred growth of cash value Low rate of return on cash value Principal protection in any type of market or economic environment Could incur a surrender charge if the policy is canceled Premium amount does not increase Death benefit coverage is locked in (provided that the premium is made), even as the insured ages or contracts an adverse health condition Pros and Cons of Whole Life Insurance Who is a Good Candidate for Whole Life Insurance Coverage? Whole life insurance may be right for someone who: • Wants coverage to remain in force for life • Is seeking a way to add to tax-advantaged savings CSM202101LIFEINS 10 [email protected] www.certifiedsafemoney.com
Universal Life Insurance (UL) Universal life insurance, or UL, is a form of permanent life insurance protection that offers a death benefit and a cash value component. Sometimes also referred to as flexible premium adjustable life, this type of insurance provides more flexibility than whole life insurance, along with more control (within specific guidelines) over the timing of premium payments and where your premium dollars go to work. Unlike term life insurance, which has a definitive end date (such as ten or twenty years), a universal life policy can remain in force for many years, provided that there is enough premium to keep the death benefit active or until its maturity date. For instance, the maturity date on a universal life insurance policy occurs when the insured reaches a certain age, typically between ages 85 and 121. If a UL policy matures, the policyholder will usually receive a payment, and the death benefit coverage will then end. Because there can be many “moving parts” involved with universal life, it is recommended that you talk with a safe money life insurance expert before you purchase a UL policy. They can help you to narrow down which type of universal life insurance – if any – is best for your specific short- and long-term objectives. Unlike whole life insurance – which offers a set rate of return – universal life has an investment savings element. This provides the opportunity to earn a higher rate of return on the cash value. These plans also typically charge lower premiums than whole life insurance. So, universal life plans are sometimes called “term life insurance with a cash value.” The two primary areas of a universal life insurance policy are the cost of insurance (COI) and the cash value (or savings) component. Most universal life insurance policies provide a minimum guaranteed amount of interest rate stated by the offering insurance company for the policy’s cash component. When interest rates in the market are higher than the stated rate, the insurance carrier will typically pay higher interest than the guarantee. Universal life insurance policies are also considered to be “interest-rate sensitive,” meaning that the cash value in these plans is used for purchasing short-term interestbearing financial vehicles. Thus, the funds in the policy’s cash component can increase more than those in a whole life insurance policy. As with other types of permanent life insurance, the money in the cash/ investment portion of a UL policy grows on a tax-deferred basis. Therefore, no tax is due on the gain unless or until the money is withdrawn. The cash value portion of a UL policy could be used as: • Surrender Value • Loan Collateral • Premium Payments CSM202101LIFEINS 11 [email protected] www.certifiedsafemoney.com
For instance, if funds are accessed from the cash value via a loan (versus a withdrawal), the UL policyholder can receive these funds tax-free. For example, if the policy is no longer needed, it can be surrendered (canceled), and the funds from the cash value are withdrawn. Depending on whether the policy has a surrender charge, it is possible to incur an early withdrawal fee. This surrender fee on universal life insurance is typically used for covering the costs of keeping the policy in force. Many retirees utilize the tax-free loan feature of universal life insurance to supplement their retirement income. Policyholders may borrow these funds for other reasons, too, such as paying off higher-interest debt or even taking a longawaited vacation around the world. Although a universal life insurance policy loan does not need to be repaid, if the insured dies with an unpaid loan balance, the repayment (including any interest incurred) will be taken from the death benefit. The remainder, if any, will then be paid to the policy’s beneficiary (or beneficiaries). Universal life insurance policies can be funded either with one, single lump-sum premium or with multiple premiums for many years. The cash value may also be accessed and used for paying the policy’s premium. If you opt to do this, it is vital to keep in mind that the policy may lapse if the cash value drops to $0. But, as long as the policy is in force when the insured passes away, an income-tax-free death benefit will be paid to a named beneficiary (or to multiple beneficiaries). Universal Life Insurance Advantages Universal Life Insurance Disadvantages Flexible premiums Higher premium than comparable term life insurance, but usually less costly than whole life insurance Tax-free death benefit for beneficiaries Policy may lapse if the cash value goes to $0 Cash value grows tax-deferred Uncertain returns Minimum guaranteed return, with the opportunity to do better, based on market performance Could incur surrender fees if the policy is canceled or “too much” cash value is withdrawn May be further customized with various riders Policy could mature while the coverage is still needed Longer death benefit protection as compared to term life insurance Interest rate risk (whereby the policyholder may have to pay more than they planned to keep the policy in force) Pros and Cons of Universal Life Insurance CSM202101LIFEINS 12 [email protected] www.certifiedsafemoney.com
Who Would Be a Good Candidate for Universal Life Insurance Coverage? Not everyone is the right candidate for universal life insurance. But this type of coverage may be beneficial for those who: • Want permanent death benefit protection • Are seeking a higher return on the cash value (as compared to whole life insurance) • Need flexibility on the amount and timing of the policy’s premium Indexed Universal Life Insurance Indexed universal life, or IUL, is another form of permanent life insurance. It is built upon a similar chassis as regular universal life; however, the return on the cash value of an indexed universal life insurance policy is based on how an underlying market index performs. In these policies, if the index being tracked performs well during a given contract year, then a positive return is credited to the policy’s cash value, usually up to a specified maximum or cap. However, if the underlying index performs poorly and returns a loss for a given contract year, the IUL policy’s cash value will not lose value. Instead, a guaranteed minimum amount – typically in the 0-1% range – will be credited. Therefore, given their ability to offer the opportunity for growth but without incurring any downside market risk, IUL life insurance retirement provides a popular approach to safely adding to your tax-advantaged savings without having to worry about a downward-moving market. Because there is a death benefit that is paid out to a beneficiary (or to multiple beneficiaries), these plans are considered to be “self-completing.” Meaning that even if the insured dies unexpectedly, their survivors can still reap the financial benefits and continue moving towards their goals. While many benefits can be attained with an indexed universal life insurance policy, there can also be some drawbacks. So, it is essential to consider both the pros and cons of IUL before making a long-term commitment to purchasing a policy. CSM202101LIFEINS 13 [email protected] www.certifiedsafemoney.com
Advantages of Indexed Universal Life Insurance Disadvantages of Indexed Universal Life Insurance Permanent death benefit protection Higher premium than a comparable term insurance policy Opportunity for a higher return than whole life or regular universal life insurance The return can be limited based on caps, participation rates, or spreads May use the cash value to supplement retirement income and pay off higher-interest debts Pros and Cons with Indexed Universal Life Insurance (IUL) Who Should Consider an Indexed Universal Life Insurance Policy? Indexed universal life insurance can provide a long list of benefits – and many of these can be accessed while the insured is alive. The right candidate for this type of coverage could be someone who is seeking: • A higher return on their cash value as compared to whole life and regular universal life insurance • Tax-deferred growth of the cash value • Permanent death benefit protection • A way to access funds tax-free or to supplement retirement income or to use for other needs Variable Life Insurance Variable life insurance is another form of permanent coverage. The death benefit on variable life insurance can go up or down over time (although it won’t drop below the guaranteed minimum). In addition to death benefit protection, variable life insurance policies also feature an investment component. When premiums are paid into the plan, the portion allocated to the investment account will be subject to the fluctuations of the market. The investment portion of a variable life insurance plan allows the policyholder to participate in a variety of investment options. This enables the policy’s savings component the potential to grow a great deal, depending on the performance of the underlying investments. But, unlike whole life insurance, there is no guaranteed minimum cash value in a variable life insurance policy. In addition to the upside potential of the investments in a variable life insurance policy, the policyholder will not be taxed on the earnings until they surrender the policy. This allows these funds to grow tax-deferred while still inside the account. Some of the investment options that a policyholder may choose from with a variable CSM202101LIFEINS 14 [email protected] www.certifiedsafemoney.com
Variable Life Insurance Advantages Variable Life Insurance Disadvantages Guaranteed death benefit Could incur losses due to poor market performance Opportunity for uncapped growth of the cash value Higher fees (including management fees for each of the underlying investments) Growth takes place tax-deferred Pros and Cons of Variable Life Insurance life insurance plan include stocks, money market funds, bonds, mutual funds, and various other investment vehicles through the insurance company’s sub-accounts. Because of the policy’s investments, variable life insurance plans are considered securities and are therefore regulated by federal securities laws and are not considered safe money investments. Variable life insurance policies allow the policyholder to invest in a wide variety of separate accounts. In most cases, policyholders may choose from several investment options. Suppose the investments that are placed in the different accounts grow more than the insurance company’s general account. In that case, the variable life policyholder can attain a higher rate of return than that offered by a typical whole life insurance policy. With this in mind, policyholders should also be aware that the same market that could offer growth may also have downtimes. This means that the separate investment account in a variable life insurance policy could again lose value at certain times. While fluctuations in the market can affect a variable life insurance policy’s cash value, the insured’s beneficiaries’ death benefit is still guaranteed with variable life. While there are some risks involved in owning variable life insurance, there are also many advantages to owning such a policy. The premiums paid on variable life insurance are typically fixed for the life of the policy. The initial face amount – or death benefit proceeds – is also set. Because of the wide variety of investment options available to choose from, variable life insurance offers the policyholder much more leeway in what is preferred. This differs from whole life insurance, for example, where the insurance company determines the underlying fund allocations and the given interest rate given to the policyholder. Besides, in most cases, the funds in the policy’s investment component may be borrowed at no or low interest. The policyholder can also use the cash value to pay future premium payments that are due. CSM202101LIFEINS 15 [email protected] www.certifiedsafemoney.com
Who Might be a Good Candidate for Variable Life Insurance? Variable life insurance can provide many enticing benefits, including the opportunity for high returns based on market performance. The growth that takes place in the cash component of a variable life insurance policy is also tax-deferred. But some trade-offs need to be made to attain more substantial growth – starting with the risk of loss due to poor market performance. Therefore, while variable life may not be right for everyone, it could be an option if you are seeking: • Greater investments rewards and are willing to accept significantly greater risk to achieve it compared to safe money investments. • Market-linked returns, without any caps or other limitations • A way to add to tax-advantaged savings and investing – even if the annual contributions to other plans like IRAs and employer-sponsored retirement plans have been maxed out for the year • Some guaranteed death benefits for survivors Variable Universal Life (VUL) Insurance Variable universal life, or VUL, insurance is similar to regular universal life in the way that it is structured. But in this case, the policyholder can invest the policy’s cash value into different types of investments, such as mutual funds. Because of its investment nature, there is some risk involved with variable universal life insurance. Likewise, these policies have no guaranteed minimum cash value like in some other types of permanent life insurance. Variable Universal Life Insurance Advantages Variable Universal Life Insurance Disadvantages Tax-deferred growth of the cash value Risk of downward market movements Income tax-free death benefit for survivors Higher fees than whole life or regular universal life insurance Pros and Cons with Variable Universal Life Insurance CSM202101LIFEINS 16 [email protected] www.certifiedsafemoney.com
Who Might be a Good Candidate for Variable Universal Life Insurance? Variable universal life insurance is not a good fit for everyone. But it could be a viable option if you want: • The ability to generate higher returns • Tax-deferred growth of the cash value component • A way to continue with tax-advantaged saving and investing – even if qualified retirement plan contributions have been maxed out Survivorship Life Insurance Survivorship life insurance – also frequently referred to as joint and survivor life insurance – covers two lives. These policies are often issued to married couples. The death benefit on this type of coverage is not paid out until the second insured’s passing. These policies greatly deal with estate planning because they can ensure that estate taxes are paid when the second spouse dies. These plans can also be advantageous because they typically require a lower premium amount rather than purchase two separate life insurance policies. Besides, survivorship life insurance can also impose less stringent underwriting requirements on the insureds, mainly if one of the insured individuals is in very good health. Advantages of Survivor Life Insurance Disadvantages of Last-Survivor Life Insurance Lower premium than two separate policies No death benefit is paid at the passing of the first insured to die Can build up tax-deferred cash value over time Underwriting requirements may not be as strict compared to an individual life insurance policy that only covers one insured Pros and Cons of Survivorship Life Insurance CSM202101LIFEINS 17 [email protected] www.certifiedsafemoney.com
Final Expense Life Insurance While researching which retirement planning steps to take, many people consider purchasing final expense life insurance so that loved ones will pay for their funeral and other related costs. Today, final expenses can be over $10,000, particularly when factoring in the burial price, a headstone, flowers, and the funeral service. A final expense life insurance policy can provide a way to quickly and easily cover these costs without loved ones having to dip into savings or sell assets to come up with the needed funds. Final expense life insurance is typically a permanent form of coverage that offers a small death benefit – usually in the range of $5,000 to $25,000. Typically, those who purchase final expense life insurance are age 50 or older. Many of these policies will not require underwriting. So, the policy may be issued quickly. In return for the insurance company taking on this type of risk, though, the premiums charged for final expense coverage are usually higher than those of a comparable, fully underwritten permanent life insurance policy. Final expense coverage is often referred to by other names, such as: • Funeral insurance • Burial insurance A final expense life insurance policy can offer death benefit protection and tax-deferred cash value buildup as a permanent form of coverage. Just like other life insurance proceeds, the funds that are received by the beneficiary(ies) are free of income taxes. Therefore, the entire death benefit could be used to pay the insured’s final expense costs. Final Expense Life Insurance Advantages Final Expense Life Insurance Drawbacks Often the coverage is guaranteed – even if the insured has an adverse pre-existing health condition High premiums Fast issue (on guaranteed issue policies) Small amount of death benefit coverage A Funeral home may be named as the policy’s beneficiary Pros and Cons with Final Expense Life Insurance CSM202101LIFEINS 18 [email protected] www.certifiedsafemoney.com
QUESTIONS TO ASK BEFORE YOU BUY LIFE INSURANCE Life insurance can be a crucial component of your overall financial planning. There are many ways that this coverage can benefit you and those you love. Before you commit to purchasing a life insurance policy, though, it is essential to answer some questions regarding the coverage itself, as well as about those who will be involved with the policy. These questions can include the following: • Who will act as the owner of the policy? • How should the beneficiary be determined? • How long will the coverage be needed? • Will the amount of coverage be enough, both now and in the future? • Do I want guaranteed growth of the cash value, or am I willing to take on more risk for the possibility of more reward? • Will it be possible to access cash via withdrawal or a loan? • Will the premium rise over time? • What happens if I need to cancel/ surrender the policy? • What are the tax implications of accessing cash from the policy? • Will the proceeds be subject to income, capital gains, or estate taxes? • Can the policy be “exchanged” for a different one if my needs change in the future? • Is the life insurance carrier that offers the policy strong and stable financially? • Am I too old/too young to need life insurance? WHICH TYPE OF LIFE INSURANCE IS RIGHT FOR YOU? Life insurance should be considered for nearly any type of overall financial plan. This financial tool can ensure that your loved ones won’t have to suffer financially, even in an unexpected event. Even if you have life insurance coverage in force right now, it may or may not be enough to cover your current and future needs. This is particularly the case if you have experienced any type of significant life event, such as marriage, divorce, or death of a spouse; the birth or adoption of a child or grandchild; selling a business or retirement; the purchase or sale of a home; or even the receipt of a financial windfall. Everyone’s needs are different. So, the type and amount of life insurance needed for one individual or family can differ significantly from another. There is a long list of criteria that must be considered before purchasing life insurance. Because today’s policies can be somewhat intricate, finding a safe money expert to discuss your goals and objectives and point you in the right direction is helpful. CSM202101LIFEINS 19 [email protected] www.certifiedsafemoney.com
If you’d like to learn more about whether or not you have adequate life insurance coverage to fit your needs – and if not, how you can revise this protection – feel free to reach out to us directly and speak with a life insurance expert. [email protected] www.certifiedsafemoney.com CSM202101LIFEINS 20 [email protected] www.certifiedsafemoney.com All investments, retirement, and estate planning strategies (collectively “Strategies”) have inherent risks. Content is not personalized financial advice and should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the author’s judgment on the date of publication and may change in response to market conditions. Although the information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness. There can be no assurance that you will achieve your goals if you implement any strategies discussed. Past performance does not guarantee future results. Indexed universal life insurance may not be suitable for you depending upon your investment objectives, risk tolerance, financial situation, and liquidity needs. Accessing policy cash value through loans and surrenders may lead to a permanent reduction of the policy’s cash value and death benefit, leading to a potential lapse of the policy. Insurance product guarantees are subject to the claims-paying ability of the issuing company. There may be tax penalties for distributions before age 59½. Working with a highly-rated professional does not ensure that you will experience a higher level of performance. Professional awards do not guarantee future investment success. Please contact the professional for more information regarding the criteria for any recognition or rankings noted. Ratings can be based on client evaluations and the professional’s activity. Hyperlinks in this Booklet are provided as a convenience. Neither the information in this Booklet nor any option expressed herein constitutes an offer to sell or solicit any person to purchase any security or product. Investment decisions should not be made based on information in this Booklet. Individuals should rely exclusively on the offering material provided to them by a licensed professional or regulated entity when considering whether to invest. Usage of this Booklet requires your acknowledgment that you shall hold CertifedSafeMoney.com, Financial Media & Marketing, LLC, and its Officers, Directors, Employees, or Agents (collectively “FMM”) harmless. In addition, you expressly acknowledge and agree that no oral or written information or advice provided by FMM (Including without limitation its call center representatives) will (I) constitute legal or financial advice or (II) create a warranty of any kind concerning this Booklet or the services found on any website(s) related to or owned by FMM, and users should not rely on any such information or advice. FMM disclaims all representations and warranties of any kind, express, implied, statutory, or otherwise, to you or any other party, including, without limitation, any warranties of accuracy, timeliness, completeness, efficacy, merchantability, fitness for any particular purpose, and usefulness of the content provided. FMM shall have no tort, contract, or any other liability to you or any other content users from this Booklet or to any other party. FMM shall not be liable to you or any other party for any lost profits or lost opportunities or any indirect, special, consequential, incidental, or punitive damages whatsoever arising out of or relating to the use of this Booklet, even if FMM has been advised of the possibility of such damages. Tax and legal information provided is general and should not be construed as legal or tax advice. It is not a substitute for your independent research and evaluation of any issue. If specific legal or other expert advice is required or desired, the services of an appropriate, competent professional should be sought. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
certifiedsafemoney.comRkJQdWJsaXNoZXIy MjEyMTc2MA==