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Zig Ziglar 1926-2012

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Harry Truman

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If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

Are you paying too much for your life insurance? Have you had your life insurance checked up lately?

I would graciously appreciate your liking and sharing my Facebook page.

disabled vet loses 140 lbs

 

 

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

Are you paying too much for your life insurance? Have you had your life insurance checked up lately?

Jobs

 

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

Are you paying too much for your life insurance? Have you had your life insurance checked up lately?

I would graciously appreciate your liking and sharing my Facebook page.

 

Valuation – an estimation of something’s worth, especially one carried out by a professional appraiser.

Currently, an A rated insurance company is offering a complimentary business valuation and buy-sell agreement reviews.

Many companies have no idea what their business is actually worth, so if you are in this category, you are not alone.

Valuating a business is not as simple as taking revenue and multiplying it by some extraneous factor anymore. Your business value is a critical to be aware of as it provides the foundation for many aspects of your business and estate planning. Additionally the transfer of business (buy-sell) agreement is another key element of proper planning.

If you have not had a business valuation done recently, it should be on your radar to complete soon. This informal process is easy and complimentary. Please reach out to me for details.

Buy – Sell reviews, when to consider:

  • If you have an agreement in place and it’s been 2 years since its drafting or review
  • If you have no buy – sell agreement in place, we can help implement one with the help of a local attorney specializing in this.

Generally these documents are part of good business planning. Here are a few things to ask yourself:

What happens to my business if an owner, shareholder or partner dies? Who will the new owner be? Will they be able to continue the business? Is there an agreement stipulating how the business is to be transferred? Is there a funding mechanism in place to do so? Is it a family business? How will you fairly compensate family members working in the business vs those that are not?

valuation

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

Are you paying too much for your life insurance? Have you had your life insurance checked up lately?

I would graciously appreciate your liking and sharing my Facebook page.

However, on my 1st 3 attempts, I was unable to complete this properly. how about you?

I’ve not been able to fold one correctly my entire life – looking forward to some success now!

how to fold a fitted sheet

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

Good stuff!

mario andretti

though I don’t believe everything I see or read.

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A few years ago I was sent by a company out to meet a 65 year old man who owned a life insurance policy. He had no idea what he had or what it was but that his father had bought it for him when he was just 11 years old. When I explained to him what he had and he saw the cash values, he was incredibly happy. Turns out it was the best financial instrument he owned!

While Suzie Orman, Dave Ramsey and many others frown upon Whole Life insurance , many, including myself, are big believers – especially in certain circumstances with long-term objectives.

Let’s get one thing clear – I don’t recommend term life insurance on kids, period. Unless there is some rare reason why this would be desired, I don’t suggest it.

Permanent, cash value type life insurance for children I do recommend though and the savings aspect is only one of the many reasons I myself do it. While you shouldn’t divert all of your extra money into them, putting a limited amount beyond your retirement, regular savings and college savings is a good idea for guaranteed, consistent growth in accessible cash values!

Aaron_4

  1. Tax deferred savings vehicle

These days it’s hard to come by a systematic method for long-term savings on a tax deferred basis that will produce as much growth as a quality life insurance policy. Whole life insurance from a reputable, mutual company can provide a great platform for this.

There are a few components to these policies, but here are the main ones:

  1. Dollars go into the policy via premiums paid
  2. A death benefit is associated and based on the child’s age, health and desired premium
  3. Guaranteed cash values accumulate over time
  4. Non-guaranteed dividends help to add additional death benefit and cash value (unless assigned for a different role) as the years pass
  5. Cash values can NEVER go down (unless it is withdrawn or premiums are skipped) – in fact, they HAVE to go up every single year
  6. Cash may be withdrawn in future years, once built up

You can set aside very little money – sometimes as little as $15 per month – or a more substantial amount – (w/i limitations) (I myself put aside $35/month for each of mine.) One key to savings is consistency and the other is time.

As cash accumulates over time, it may be withdrawn completely or incrementally. If done properly, it may come out on a tax free basis. Only when the cash coming out exceeds the cash that went in is it taxable – and there are ways around that too such as taking policy loans.

These loans do generate interest; however, this may be offset by dividends. Basically, the cash values accumulate dividends and these may be taken in cash, used to reduce premiums or used to cover interest. These dividends increase over time and grow annually.

While dividends are not guaranteed, there are a few companies that have been paying them every single year since the 1800’s. In my book, that converts to a high probability that this trend will continue.

However, that’s not it as there are also guaranteed elements to these policies.

My Own Short Story

Several years ago, my father was buying EE bonds for my kids as a future saving vehicle. With an interest rate environment that is so low, I told him it would be better to put that cash into a life insurance policy for them. So, every year, he then put $400 or so into life insurance policies for them as opposed to bonds. In 20 years, they will outperform the bonds greatly (historically speaking). What’s more is that you can take money out of these policies tax free if done correctly and use it for any purpose you choose.

Since my father’s passing, I have taken the policies over as the new owner. My plan is to keep paying into them until they are in their 30’s – then I will turn them over to them.

They can take some or all of the cash out, keep paying in to them, stop paying and keep the coverage (and cash values), or take several other paths depending on needs. This cash can be used for anything at all – down payment on a home, collateral on a loan, a great vacation or whatever they desire.

By putting as little as $50/month into these policies, they will grow nicely over time – this won’t work for 5 or 10 years, you need 20 or 30 years! This is not a short term strategy, long-term only!

The automatic deduction method from a checking or savings account is also a forced savings method. If you get a monthly bill, it may or may not get paid, however, with electronic deductions, it makes life easy and systematic.

 

Don’t buy it for the death protection; buy it for the savings aspect. Death protection may be important in the future, but not as children. Remember, buy insurance for your kids, not on your kids!

 

  1. Low insurance rates remain with them for life

Life insurance premium are based on a number of factors – the most important is age. Whole life, by design, has an end game. The goal is to have cash values equal to the death benefit at age 100. On this basis, the older we are when we start these plans, the larger the premiums are because we have to accumulate a lot of cash in a shorter amount of time.

Again, whole life insurance has this goal:

Premiums + interest (and/or dividends) = death benefit at age 100

 

For instance, here are some premium figures for a $100,000 policy at a variety of ages:

    Monthly Premium  
Age for $100,000 of whole life insurance
Male Female
5 43.15 35.06
10 49.16 40.37
15 59.42 46.89
30 95.7 82.13
50 235.16 192.1

 

All of these policies will have at least $100,000 (much more if dividends are paid) in cash value at age 100. The premiums are smaller at younger ages because there is more time to reach that goal.

Therefore, the earlier in life you begin this, the less you will pay for life insurance as these rates will remain forever – they are guaranteed.

 

  1. Options to buy additional coverage as an adult w/o medical considerations

There are several “riders” that may be purchased along with these policies. Yes, there is a cost associated; however, some of them are quite valuable. The additional purchase option is one of the most popular for good reason; it allows you to add insurance, at specified intervals, without any health considerations.

When your child reaches age 25, he (or she) may purchase more insurance even if they have developed a health condition or are uninsurable. Continuing forward, they can purchase additional coverage (at specific intervals) without medical underwriting until the entire benefit is used up.

A popular company I like has a maximum additional purchase of $125,000 per event for a total of $1,000,000 in additional coverage to the original policy! Imagine assuring your children will be able to obtain that much coverage in their lifetime?

God forbid something drastic changes in their health like: diabetes, cancer, heart, sleep apnea or many others. These conditions can increase premiums or exclude them completely from consideration for additional coverage, but NOT with this rider in force!

Having an additional purchase option may be a great rider to have as it assures them a lifetime of coverage. What’s more, if you add the next rider and disability occurs, all of these additions may be executed with no premiums due for to age 65 on the contracts!

 

Option to waive premiums if they become disabled

Premium waiver or waiver of premium is another common rider – the most common one added to policies I see. It waives premiums if a child is disabled insuring that the policy continues on as expected even when unfortunate circumstances occur. (Show me a savings program that completes itself in this event other than life insurance?)

While there are many “definitions” of disability, most companies will require a total disability in order to trigger this benefit.

I have met adults, more than once, who were disabled and had this rider on their policy without knowing it. When I met with them, helped them put in the claim to get reimbursed from the date of their disability. In one case it went back near 4 years! This fella was quite happy when he received a check for >$3000 to cover the premiums he had paid!

I like this rider, especially for children and whole life policies as the cost is very low….it adds little to the premium.

 

  1. Ownership

Just because a life insurance policy is in place on the life of a child (or anyone else) doesn’t mean that they own the policy. In fact, an adult must own the policy.

The way I like to set these up is by having the person paying for the policy own it….this could be a parent or grandparent.  If the owner were to die, we have a successor beneficiary set up to immediately assume ownership. It is all quite seamless.

The owner, while not the insured, makes all decisions about the policy:

  • Who the beneficiary is
  • How premiums will be paid
  • Controls the cash value

In my own case, I own the policies for my children and will continue to own them until I am ready to hand them over to them. I am targeting the age of 30 or so. Once they are through their 20’s, have stable lives and good careers, I will give them the policies. They can then decide if they want the cash for some reason, want to continue paying premiums into the policies to maximize cash and benefits or stop paying and just let them continue to provide coverage and a cash value for future use.

Again, this cash can be used in part or whole for any reason…..down payment on a home, satisfy college loans, take a trip to Europe or whatever is desired. It is your (or their) cash to do what they want if they want.

 

Of course, these are only a few of the reasons to buy life insurance for your kids. There are limitations on how much insurance you can have on your kids as well – these rules vary by state. This I see as both a good thing and a problem. In fact, this is the only problem I see with these policies – how much cash you can put into them!

If you reach out to me, I will happily fill you in on the limitations in your state and help you structure a proper plan.

Suzie Orman, Dave Ramsey and the other naysayers, eat my heart out!

 

A few other items

I dislike most universal life (UL) insurance policies – especially for kids. I also dislike variable life (VUL) insurance policies – they are difficult to manage and really require close management. Most purchasers are abandoned by their agents and are on their own only to realize, at the worst possible time, that things have not gone as planned.

Here’s a link to my take on universal life. If you really want to understand VUL , here’s another  an article…..good luck!

 

 

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

including the inhumane treatment of others. To act alone is absurd.

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Understood?

Good-Quotes-09

Yoda!

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Read it!

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The world’s hunger and food issues are not from lack of supply, they are purely economical. How sad that the world could eradicate hunger so easily yet we don’t do it!

 

 

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

Yes!

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If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

Here here Teddy!

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In his monthly newsletter, Peter Katt discusses replacing a series of existing cash value polices with an alternative to meet changing objectives. His agenda on what to consider and how to analyze the opportunity is spot on as usual.

I would add that replacing an existing term policy(ies) may also provide opportunity – for savings, increased coverage or both. When policies near the expiration of the guaranteed premium period, they can become very expensive. Of course, I also caution you to never drop your existing coverage until a new, improved offer is in place –  that is rule #1! Here is a short story where I helped a client save $18,000 over 20 years. Here is another where I helped replace existing policies with a guaranteed solution.

Term life insurance rates are very competitive currently and I have seen replacement situations that result in far better circumstances than existing situations. Shopping term rates is not a complex task once you know the details you can make a simple, educated decision:

  1. how much coverage do you need
  2. how long a term period do you desire
  3. what is the rate class issued on both the old and new configuration
  4. how are the ratings of both companies

(How to save money on your term insurance)

(click the pic for Peter’s article)

Peter Katt

 

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

Well said Jimi

cKHsb

Boy and dog hang out!

boy and dog

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

10613089_10153403057869368_8436687021309936271_n

This guy is a hero in my book! How about yours?

scott-neeson-600

If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

Kid gets a tablet and is overwhelmingly grateful to his parents! Definitely worth watching and sharing! You don’t need to speak Spanish to understand his gratitude!

 

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If you find my information inspirational and/or helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

il_340x270.391834341_ncgk

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The Tax Foundation released a map, via Elliot Turner, showing the relative value of $100 in every state compared with the national average using the data from the Bureau of Economic Analysis.

No surprises here…..except the 40% overall differential in some states. Maybe we should all retire in a 3rd world country where the dollar really stretches! I am not certain why I still live in NYS….must be the freezing winters!

price-parity-2012

If you find my information helpful, I would appreciate you spreading the word by liking, commenting and sharing this with all of your friends and/or coworkers.

I will also help review your life insurance policy…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

‘nough said?

tom-hanks-long-life-quote

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Believe it or not, I was about to post this quote last week.

Robin Williams

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Western Colorado

Mario Andretti

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This is 2 minutes of some of the most touching video I’ve seen….worth every second!

2006+ESPY+Awards+Arrivals+bmnPaJN5BE-l

wyoming

quote-i-worked-hard-anyone-who-works-as-hard-as-i-did-can-achieve-the-same-results-johannes-sebastian-bach-9378

Reality

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Most term policies may be kept for a very long time, even beyond the guaranteed period. You have to check you policy schedule to determine this exactly – it’s usually in the 1st few pages of the contract. For example, if you have 20 year term policy, the premiums are usually guaranteed for 20 years , however,  in year 21 and beyond they typically increase annually.

Be aware – the rates published in your policy are generally the maximums and not the actual premium you will pay.

 

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frankzappa

buffet 1

Your bro’s opinion.
Bro 1: So what do you think about Sara?
Bro 2 : Don’t let my opinion stop you, go for it.
Bro1 : No, I care about your bropinion.
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Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here.

I would graciously appreciate your liking and sharing my Facebook page.

Simplify. It is not the daily increase but daily decrease..

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