A PROMISE KEPT
Mortgage Payment Protection
Would your spouse and children be able to afford to live in their current home without your income? With proper life insurance planning, you can help ensure that your family is able to remain in their home, surrounded by the support of family and friends. Watch the short video for more details on mortgage payment protection.
Sometimes the biggest love comes in the smallest packages. #InsureYourLove #LegacyofLove
College Planning - 529 Plan vs. Indexed Universal Life
The 529 plan is a savings plan that is funded with after tax dollars, the gains grow tax-deferred, withdrawals for qualified higher education expenses are free from federal tax and must be used for educational purposes only. Indexed Universal Life is also funded with after-tax dollars, gains grow tax-deferred, distributions are tax-free through policy loans, however the money can be used for any purpose, however you see fit. For example, if a child gets a full ride scholarship then the 529 plan if not used for education will be taxed at a higher rate and also incur penalties. Another point to make is that the 529 plans funds can only be used in U.S accredited schools. So if your child wants to study abroad then you are unable to use those funds toward their education. Life insurance cash values has no restrictions. Lastly, the 529 plan funds are included as income when your child is applying for federal student aid. Life insurance cash values are not considered.
Final Expense Life Insurance
Many of us have survived losing a loved one and experienced the grieving and pain that comes with it. This difficult timecan be even more challenging if the grieving process is complicatedwith the burden of planning and funding a funeral. Some things areinevitable, and it can be difficult to consider how to pay for your finalexpenses.
According to the National Funeral Directors Association, the averagecost of a funeral is $8,343.001. This average does not include thecemetery plot, headstone, flowers or other final expenses suchas paramedic expenses, ambulance costs, Medicare deductiblesand unpaid debts. If you consider these items, your own longevity,and inflation, this cost could be significantly higher. Governmentprovisions are generally not sufficient to cover these costs. SocialSecurity provides a one-time payment of only $2552 and veteransbenefits pay only $3003.
Premiums and Benefits Are Guaranteed
Level premium whole life insurance policydesigned specifically to cover final expenses. Your premiums areguaranteed to never increase over the life of your policy and the deathbenefit amount is guaranteed not to change4. Your cash value willaccumulate as you pay your premiums, and can be accessed in timesof need through a policy loan5. Once issued, your policy cannot becancelled as long as premiums are paid.
An additional advantage of final expense life insurance is that yourbeneficiary will receive the policy proceeds without a tax penalty.
4. Death benefit guarantee assumes thatthe premiums are paid and there are no outstanding loans on the policy.
5. Outstandingloan balances will reduce the death benefit.