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Term Life Insurance

With a term life insurance policy you can provide your family with the financial support they would need if you were to pass away unexpectedly. Our term life insurance comes in coverage periods, or “terms”, ranging from 10 to 30 years. This allows you to match the length of coverage you need with different life stages – such as covering a mortgage, getting children through college, or replacing income during prime earning years.

Term Life Insurance
Cost-effective-life-insurance

Term life insurance is one of the most cost-effective life insurance options, with guaranteed premiums during the coverage term. Because it offers pure protection without investment components, term life premiums are often significantly lower than permanent life insurance for equivalent coverage amounts. This makes term life very budget-friendly for most households.

When your term length ends, you have the option to renew your policy for an additional term, regardless of any changes in health or other circumstances. Renewal premiums increase with age, as the risk of death rises as we get older. But guaranteed renewability is a key benefit of term insurance, providing ongoing coverage options throughout different stages of adulthood.

With Value Financial Services assisting with the process, securing term life insurance is very quick and convenient. We will request a medical history and possibly a medical exam, after which policies can often be issued within just 30 days. The death benefit payout from a term life policy can be used however your beneficiaries see fit – to cover funeral costs, mortgage payments, medical bills, education expenses, daily living costs, and more. It provides essential financial support at a time when families need it most.

Indexed Annuities in Retirement Planning

Indexed annuities, on the other hand, are financial products that can provide a stable income stream during retirement. These annuities are tied to a market index, such as the S&P 500, allowing retirees to participate in the market’s growth while providing protection against market downturns.

One of the most appealing features of indexed annuities is their ability to offer a guaranteed minimum return, ensuring that retirees have a steady income even during market volatility. This makes them an attractive option for risk-averse individuals who want to avoid the uncertainty of direct stock market investments.

Furthermore, indexed annuities often include riders or additional features such as death benefits or options for long-term care coverage. These can add flexibility and additional layers of financial security to a retiree’s plan.

Balancing Life Insurance and Indexed Annuities

For a comprehensive retirement plan, a balance between life insurance and indexed annuities can be beneficial. While life insurance provides a safety net for dependents and potential cash value benefits, indexed annuities offer a reliable income source and protection against market fluctuations. The choice between them, or the decision to incorporate both, depends on individual financial situations, risk tolerance, and retirement goals.

Both life insurance and indexed annuities can be integral parts of a well-rounded retirement plan. Life insurance offers protection and potential liquidity, while indexed annuities provide income stability and market-linked growth potential. When used in conjunction, these tools can help create a secure and flexible financial foundation for retirement. Consult with us to tailor these tools to your individual needs and objectives.

Retirement Planning Frequently Asked Questions

Target accumulating investment portfolio balances able to replace 70-90% of current gross incomes by retirement date under reasonable expected annual return assumptions. This funds living costs and discretionary spending initially.
Plan for 25-30 year retirement timelines for most pre-retirees today given increasing longevity trends, social security statement projections, and family history lifespan guidance from actuaries. This extended duration impacts portfolio construction.

Retirement portfolios shift over time from growth accumulation stages needing higher risk tolerances to fixed income and insured assets providing quarterly cash flow for increasing living expenses and healthcare needs in later decades requiring asset preservation.

While alluring, early retirement risks healthcare coverage gaps pre-Medicare eligibility, portfolio longevity challenges if withdrawing prematurely, pension amount reductions, and unexpected healthcare or family funding needs arising so model contingency plans for re-entering workforce as needed.
Revisit retirement plans at least biannually factoring in portfolio changes, tax law updates, family health developments, pension adjustments, part-time work opportunities, or geographic relocations to verify income sustainability projections and withdrawal rates remain aligned with evolving realities.
Target accumulating investment portfolio balances able to replace 70-90% of current gross incomes by retirement date under reasonable expected annual return assumptions. This funds living costs and discretionary spending initially.
Plan for 25-30 year retirement timelines for most pre-retirees today given increasing longevity trends, social security statement projections, and family history lifespan guidance from actuaries. This extended duration impacts portfolio construction.
Retirement portfolios shift over time from growth accumulation stages needing higher risk tolerances to fixed income and insured assets providing quarterly cash flow for increasing living expenses and healthcare needs in later decades requiring asset preservation.
While alluring, early retirement risks healthcare coverage gaps pre-Medicare eligibility, portfolio longevity challenges if withdrawing prematurely, pension amount reductions, and unexpected healthcare or family funding needs arising so model contingency plans for re-entering workforce as needed.
Revisit retirement plans at least biannually factoring in portfolio changes, tax law updates, family health developments, pension adjustments, part-time work opportunities, or geographic relocations to verify income sustainability projections and withdrawal rates remain aligned with evolving realities.

Embrace a Bright Future

An empowered retirement aligned with personal goals awaits those proactively planning finances structured around realities of changing capacities over time. Envision fulfilling ventures realistically funded then purposefully execute prudent strategies ensuring you thrive moving confidently into each phase holding wonder life has yet to reveal.
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FAQ’s

A common guideline is to carry a total death benefit between 10 to 15 times your gross annual income if you have dependents. This approximates replacing enough income long term while eliminating debts owed. Factor in specific costs needs around college savings, mortgage balances, etc as well.
Experts emphasize age 30 as an important milestone to purchase initial life insurance policies as responsibilities and expenses accumulate for more families. Locking in insurability earlier ensures broad options. Incrementally add additional policies as kids arrive, debts expand etc.
Term life only provides a death benefit payout in event of passing during 15-30 year term length selected whereas whole life functions as forced savings allowing accruing cash value assets while also paying the insured amount lifelong as premiums stay paid.
For relatively small incremental rate increases, waiver of premium ensures policy continuation without further payments if the insured becomes seriously disabled along with conversion options allowing shifting term policies to permanent cash value policies without new health examinations later. Both prove worthwhile.
At age 18 when kids gain control over their financial and healthcare decisions, it is wise to explain life insurance implications within estate planning so they grasp death benefit purpose along with any conversion provisions transferring control to them at particular ages stated.
A common guideline is to carry a total death benefit between 10 to 15 times your gross annual income if you have dependents. This approximates replacing enough income long term while eliminating debts owed. Factor in specific costs needs around college savings, mortgage balances, etc as well.
Experts emphasize age 30 as an important milestone to purchase initial life insurance policies as responsibilities and expenses accumulate for more families. Locking in insurability earlier ensures broad options. Incrementally add additional policies as kids arrive, debts expand etc.
Term life only provides a death benefit payout in event of passing during 15-30 year term length selected whereas whole life functions as forced savings allowing accruing cash value assets while also paying the insured amount lifelong as premiums stay paid.
For relatively small incremental rate increases, waiver of premium ensures policy continuation without further payments if the insured becomes seriously disabled along with conversion options allowing shifting term policies to permanent cash value policies without new health examinations later. Both prove worthwhile.
At age 18 when kids gain control over their financial and healthcare decisions, it is wise to explain life insurance implications within estate planning so they grasp death benefit purpose along with any conversion provisions transferring control to them at particular ages stated.
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