Special Agency
Insurance & Finance
Life Insurance
Deciding on the right Individual Life Insurance policy usually depends on your future goals. Whether
you wish to provide a tax free income for your beneficiaries, have funds for the payment of the final
expenses or estate taxes, replace the income that is lost if you die, or provide a significant charitable
contribution, we can help you chose the policy that will fit your needs at an affordable price.
Individual Life Insurance can be important for:
A Source of Saving
Final Expenses
If not paid out by death benefit, some types of life insurance can have a cash value.
Using life insurance to pay for funeral and burial expenses.
Income for Dependents
A life policy can provide much needed income for your dependents when you die. Many times this is used for children, but can also be used for a partner that has a loss of income.
Income for Dependents
Using a life insurance policy as an inheritance even if you don't have substantial assets to pass on to your beneficiaries.
Used to Pay Taxes
Making a Charitable Contribution
Life Insurance Coverage Option
Generally age and health are the most important factor in the premium you will pay. Although you can purchase a policy at any age, the younger you are the more affordable the policies will be.
All life insurance policies are designed to pay a benefit when someone dies.
The two most common types of life insurance are Term and Whole (or Permanent) policies.
Term Insurance is usually the most affordable type of coverage. The term of the policy usually lasts
between 1 and 30 years and pays only if a death occurs during the policy term. Most term policies
have no other benefit provisions. Term policies can be level term which means the death benefit will
remain the same throughout the duration of the policy, or they can be decreasing term which mean
the death benefit drops over the course of the policy's term. When the policy term ends, you may or may not qualify for new coverage based on your health, and based on your age, the cost of the premium may be too high to be affordable.
The advantage of Whole or Permanent Insurance is the death benefit and premium will usually
remain the same during the duration of the policy. These policies can also build cash value which
may be withdrawn or loaned similar to a savings account.
Life & Annuity
Annuity
Annuities are insurance contracts that make regular payments to you either immediately or at some point in the future. You can purchase an annuity to help grow or protect your retirement savings or to provide you with guaranteed income. Annuities come in a variety of forms. Each type can have unique features that may help you achieve your financial goals whether you're saving for retirement, approaching retirement, or living in retirement.
How tax-deferred annuities may help you save for retirement
If you are already saving as much as you can in your 401(k) or IRA, you can use this type of annuity
to boost your retirement savings. Like any tax-deferred investment, earnings compound over time,
providing growth opportunities that taxable accounts lack.
Deferred annuities have no IRS contribution limits, so you can invest as much as you want for retirement. You can also use your savings to create a guaranteed stream of income. Depending on how annuities are funded, they may not have required minimum distributions.
Deferred variable annuities
Deferred variable annuities include funds that may have the potential for investment growth.
However, this can involve some market risk and could result in losses if the value of the underlying
investments falls. Variable annuities are usually appropriate for those with longer time horizons or
those who are able to handle market fluctuations. Some variable annuities allow you to protect your
investment against loss, while still participating in potential market growth.
Deferred variable annuity with a guaranteed minimum accumulation benefit
A deferred variable annuity with a guaranteed minimum accumulation benefit provides you the
potential to benefit from any market gains while simultaneously protecting your original investment
from any market downturns for a specific period of time.
This protection comes in the form of a rider on the variable annuity contract which guarantees that if your account value at the end of at minimum a 10-year holding period is less than the amount you had initially invested, the issuing company will add an amount that covers any losses to restore the full amount (less the impact of withdrawals and partial annuitizations). Also, if your situation changes, the account value is accessible as needed.
Deferred fixed annuities
Deferred fixed annuities offer a guaranteed rate of return for a specific number of years. Fixed
deferred annuities may be more suitable for conservative investors or for those interested in
protecting assets from market volatility. In this way, they're similar to certificates of deposit (CDs).
Annuities are not FDIC-insured
If you make withdrawals before age 59½, you may be subject to a 10% IRS penalty.
Deferred fixed annuities may offer more access to assets than a CD.
Annuity earnings compound on a tax-deferred basis.