Should you have a portion of your retirement assets in an indexed annuity? There is a great deal of information about how to allocate retirement assets. A fixed indexed annuity offers upside with virtually no downside.
If you want to create an income stream that is guaranteed for life, an indexed annuity may be the right tool.
If you want to protect your principal and receive a guarantee that you will NEVER lose it, you may want to consider an indexed annuity.
If you want market gains without market losses, a fixed indexed annuity will provide this “market insurance”.
Only an insurance company can guarantee 100% principal protection and income for life.
Americans concerned about security in retirement are buying more than $200B of indexed annuities. Watch the video below to learn about the advantages of using a fixed indexed annuity versus variable annuities that continue falling out of favor for retirement planning.
https://limra-1.wistia.com/medias/4yknawcnnn
Please contact me at 561-869-4500 or email me about a complementary consultation for indexed annuities and a review of your coverage.
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Do you want permanent life insurance coverage for your family or business, regardless of how long you live? Then a permanent insurance policy is right for you.
There are important differences between term life insurance and permanent life insurance such as whole life and universal life. These differences go way beyond price. The proper way to compare life insurance is to compare the net cost of different options. The people pushing term insurance use a marketing gimmick known as “buy term and invest the difference”. The problem is:
Nobody invests the difference!
If you want a policy that will protect your family for life, a permanent policy is the only option. If you want a better net cost, again you want to be looking at permanent coverage. The net cost is much lower than term insurance.
The Risks of Term, Look at the Math: A male 35 will pay $950 annually for $1,000,000 of term (for a female, a little less). The 10-year net cost of this policy is a LOSSOF $9500. Over 30 years, the policy will have a net loss of $28,500. The term policy will lapse at age 65 with no value. If this person is healthy, he has 20 more years to live, using today’s projections. If the person is unhealthy, he will be unable to get life insurance or it will be un-affordable. Millions of people over 60 today cannot afford what is available to them.
The Advantages of Permanent Life Insurance: On the other hand, the same 35 year old can buy a permanent policy for $9525. Yes, the premium is significantly more than an equivalent term policy and this automatically rules out all the people who currently do not have the cash flow to buy a permanent policy. The $9525 premium is guaranteed to stop at age 65. The 10-year net cost of this policy is projected to be a GAIN OF $2721. The 20-year net cost is a GAIN of $97,816 and the 30 year GAIN is $343,059.
Over 30 years, the net cost for term is a negative $28,500. The projected gain, using the current dividend scale, is a stunning $343,059. If you would you like to see a simple presentation customized for you, please complete this form and we will be in touch or feel free to call us at 561-771-4647.
A permanent policy will remain inforce as long as you need it to without any new medical information. The equity in the policy can be tapped at anytime and today, many permanent policies offer Accelerated Benefits for health emergencies.
Why doesn’t every life insurance buyer own a permanent policy?
The number one reason young people select term insurance is affordability. Many young life insurance buyers do not currently have the necessary cash flow to purchase permanent life insurance, and that forces them to purchase term. In too many cases, the term policy that was selected only for its lower cost is not replaced with a better, more appropriate permanent policy, when it is affordable. The right insurance professional should be stressing the importance of replacing the term policy as soon as possible. Term insurance is the right product only if your need for coverage is temporary. Paying premiums into a term policy is throwing away money 97% of the time because 97% of all term policies lapse before paying a claim.
Most young people underestimate their desire to have life insurance later in life. People over 50 want insurance for life to protect their spouse, children or grandchildren.
If you have not looked at the net cost advantages of permanent life insurance recently, you might be surprised at its low premiums and low net cost. The entire process, from quotes to underwriting, can be done online and, in many cases, there is no medical exam at all.
Why Permanent Life Insurance?
The net cost of permanent life insurance is superior to term.
Does not expire, is there when you need it most, one policy for life.
Consult with an experienced insurance professional to get a customized policy.
DO YOU WANT YOUR HEIRS TO RECEIVE LIFE INSURANCE PROCEEDS, GUARANTEED FOR LIFE?
Secondary market value. A permanent policy can be sold for cash if you do not need or want the policy after age 70. Typically, you cannot sell a term policy in the secondary market if it can’t be converted.
The following video speaks to the virtues of permanent life insurance.
You can visit us at www.facebook.com/lifecycleplanners
https://en.wikipedia.org/wiki/Whole_life_insurance l https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance
Jumbo life insurance policies typically begin with face amounts of $10,000,000 and are often purchased by high net worth and ultra-high net worth people. Some insurance companies and some life insurance professionals cater to this market which is highly specialized.
Jumbo life insurance buyers will work with insurance professionals to secure coverage with the lowest rates and the best underwriting class. There are considerable differences when underwriting policies for $1,000,000 and ones for $15,000,000, $50,000,000 or $100,000,000.
A key factor in determining the policy’s premium is the underwriting class that is offered. The difference in underwriting classes can be dramatic. Double digit differentials are typical because the cost of insurance is higher as the classes reflect.
Don’t be fooled by “loss leader” rates that initially look good during the quoting process. The quoting process is not where the battle is won and lost.
The best preferred rates are offered to people who take no medication, have no medical history and whose families have no medical histories. Underwriting term insurance is very different than underwriting permanent insurance such as whole life, indexed universal life and guaranteed universal life. Most high net worth consumers prefer permanent life insurance because they understand that the net cost of permanent life insurance is much lower than term insurance.
In fact, getting you the best underwriting class should be the agent’s top priority once underwriting begins. Doing this properly requires experience and expertise from a professional who is willing to push back based on knowledge about illnesses and medications. The right agent will have extensive relationships with underwriters and who can represent all companies. Working with insurance agents who represent only one insurance company, known as a captive agent, is working against the best interest of life insurance buyers.
There are only a small group of insurance companies specializing in the large case life insurance market. Insurance companies may share underwriting results with one another, which is authorized through the application process. One way is through the MIB (the medical information bureau). The chance of future problems increases if the underwriting process is not being managed properly. The best outcomes occur when insurance professionals represent the best interests of their client by approaching the process with complete transparency and disclosure.
What you need to know for obtaining the best rates:
Check your known underwriting history before submitting new applications. I work with my clients to get an accurate picture of their health history and their life insurance history, including previous submissions. With this information, we create a report of how much coverage is currently inforce and how much will be replaced, if any. The total amount of inforce coverage at the end of underwriting is critical information to share with underwriters, at the beginning of the process.
Chronicle the medical history. This helps us understand both current and past health issues which may impact underwriting decisions. We recently helped a 66 year old woman acquire a jumbo policy for succession planning purposes. She had been on lithium for 15+ years without any problems. Suddenly, she had developed a tolerance to the lithium that created some temporary issues. All her current coverage was issued on a preferred basis. Knowing the history helped the right underwriters understand it was a medication problem and nothing else. Many underwriters declined the case.
Product Design. The underwriting criteria is different for permanent coverage than it is for term insurance and selecting the right product can be complicated. Commissions, high cash value riders and term blends should all be considered as each of these variables can impact price and net costs.
Premium financing and jumbo life insurance: In many cases, it is a perfect combination. Premium financing is often an ideal strategy for purchasing permanent life insurance. Like now, loan rates are significantly lower than a policy’s rate of return and a policyholder’s ROI. An in depth analysis must be done by the life insurance professional to outline the pros and cons of Premium Financing:
Cover letters go a long way in helping underwriters understand what a prospective client is trying to accomplish with life insurance. Often, these jumbo life policies involve complex estate planning strategies. A cover letter is always beneficial.
It used to be that life insurance only provided benefits to your beneficiaries. Like everything else, innovation has made life insurance far more valuable than ever before.
Now you can tap the face amount of your policy if you have a health crisis. Think of it as an unfunded savings account. You could have a one million dollar policy with no value in it. At possibly the worst time in your life, you have guaranteed access to a portion of the million (up to 90%).
Another innovation allows you to fund the policy and never lose principal when the market is down. No risk, only potential upside.
Not impressed yet? If you reach the point where you don’t want or need the policy, you can sell it for a profit like any other asset you own.
Please contact me at 561-869-4500 or email me about a complementary consultation including guaranteed income ideas and a review of your existing coverage. You can visit us on Facebook.
Wealth destruction at inheritance time is showing no signs of slowing down. More and more family members are litigating with one another including attorneys, CPAs, wealth managers, family businesses and other related parties. Why is behind this unfortunate trend?
Too often, all the planning attention is placed on the family’s financial and real estate assets. There is nothing wrong with this but when there were dysfunctional family dynamics before inheritance, it is likely there will be dysfunctional family dynamics upon death. Neglected during the planning process, this dysfunction can lead to unintended consequences for family and business relationships. Most people passing on wealth do so with an expectation that their generosity will be received in the spirit it was intended. Without a proper amount of focus on family dynamics, succession inheritance can cause further damage to family relationships.
Surrender charges on fee-based variable annuities seem to be retreating faster than the polar ice caps, new filings reveal.
“These advisor-sold contracts typically have no surrender or a very short surrender (period) with very low penalties,” said Kevin Loffredi, senior product manager, annuity solutions, for Morningstar.
Surrender charges penalize an annuity contract holder for canceling the contract before a certain date. They also allow insurance companies to recoup their commissions paid upfront to advisors on the sale of a commission-based contract.
For annuity buyers, contracts with shorter or no surrender penalties is advantageous. In the past several months, there has been a rush of insurance companies introducing products with better surrender charge solutions. The challenge for them will be distribution.
Please contact me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about indexed annuities and your specific needs. You can visit us at www.facebook.com/lifecycleplanners
Using Fixed Indexed Annuities, insurance companies guarantee lifetime income for a critical part of your retirement plan. Annuities are not investments. Instead, they are contracts you enter with multi-billion dollar financial institutions that are regulated by 50 states. To maintain Triple A ratings, they are transparent to regulators and are considered to be extremely conservative.
Insurance companies have higher reserve requirements than banks.
Insurance companies must comply with strict investment guidelines.
The 30-year bull market in bonds may be over. The Fed has said it will continue to raise interest rates, which is not good for bond owners, especially open-ended mutual fund bond owners. Now is a great time to protect gains and protect retirement assets with a principal protected, lifetime income solution.
The right annuities, fixed indexed ones, can participate in the some upside of the markets, without any downside risk. This allows you to participate in potential stock market growth without the anxiety from the roller coaster of stock market losses.
There are contracts with 100% liquidity from day one – a full return of premium if you want out for any reason. These are special contracts not offered by everyone.
When stock market returns are negative, your annuity is credited at zero percent. When the markets are positive again, you will participate in a portion of the upside. This is a tremendous benefit during down years and bear markets.
Annuities provide higher income payouts as you get older. The longer you wait, the higher your guaranteed payout will be.
Annuities can provide guaranteed income for both spouses. The guaranteed income may continue for as long as the surviving spouse is alive. The life expectancy for two lives is much longer.
Some contracts DOUBLE the income payment for long term health care costs in the event you cannot perform two out of six Activities of Daily Living.
Upon the owner’s death, any unused principal will be transferred to the beneficiaries. The amount of money you contribute, plus all gains credited to your contract, will pass to your heirs.
Please contact me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about indexed annuities and your specific needs. You can visit us at www.facebook.com/lifecycleplanners
NEW INSTALLMENT PAYOUT OPTION REDUCES ANNUAL LIFE INSURANCE PREMIUMS AS MUCH AS 40%!
Life insurance buyers have a new and often better option to protect their beneficiaries. According to Ted Bernstein of Life Cycle Financial Planners, it is an important choice policyowners now have when it comes to providing long term security for their families. The Installment Option can be 40% less premium, annually.
Life insurance owners can choose how their proceeds are paid to their heirs with this option. Until this groundbreaking change emerged, a Lump-Sum payment of insurance proceeds was the only choice. Instead of having $1,000,000 paid in a lump-sum, policyholders can instruct the insurance company to customize the payment of the benefits to protect their heirs. For example, the insurance company can pay 10 equal payments of $100,000. Or, another family may choose to receive a lump-sum payment of $500,000 upon death, followed by 5 equal payments of $100,000 would be better.
We insure every aspect of our lives including our health, our homes, and our income. Why not protect your beneficiaries from mismanagement they can’t recover from, especially after you’re gone?
INSTALLMENT PAYOUT OR LUMP-SUM? WHICH IS BETTER?
“A Lump-Sum payout to heirs is often a recipe for disaster”, warns Ted Bernstein of Life Cycle Financial Planners. The proceeds are gone within 3-5 years because it is difficult for many to manage a sudden lump-sum of money, similar to the issues facing lottery winners who take a lump-sum. As a result, life insurance consumers now have an alternative. “Policyholders can protect their families from investment risk and drastically reduce their insurance premiums at the same time”, says Mr. Bernstein.
For many, it is a better structure and choosing it can save consumers as much as 40% EVERY YEAR for the same amount of insurance. Or, they can increase the coverage by 40% for the same premium as a lump-sum option. The payments can be paid between 10 and 30 years.
Ask us about apply and buy life insurance that allows life insurance buyers to get up to $5,000,000 of coverage in one phone call! WITH NO MEDICAL EXAM. No blood or urine tests, visits from insurance company doctors or an agent! Both term and permanent life insurance policies are available – Term, Whole Life, Universal Life, Guaranteed Universal Life, Indexed Universal Life.
“From my experience, parents want to make sure there is enough life insurance to avoid any economic upheaval in the event of an early parental loss”, advises Deborah Bernstein of Life Cycle Planners. “The installment option is peace of mind you just don’t have with a lump-sum payout. We have seen too many situations where all the proceeds are gone within a few years of lump-sum payments”. As the innovator of this option, Ted Bernstein says both term and permanent policies are available from the highest rated U.S. insurance companies.
Special Needs Families: For families with special needs children, there is no room for error when it comes to investing assets for a lifetime. The Installment Option provides these families with a GUARANTEED solution.
The Installment Payout Option:
Reduces premiums as much as 40% for same amount of death benefit.
Premiums and benefits are GUARANTEED.
Protects heirs from risk by guaranteeing payments over time.
Customizable – great flexibility. Payment periods between 10 and 30 years.
Please call us at 561-869-4500 and let us help you compare your existing coverage. Or, email Ted.
Make sure to inquire about Life Insurance with living benefits and turn the face amount of your life insurance policy into an emergency health insurance fund.
Living Benefits Adds Immediate Protection For Critical & Chronic Health Problems says Ted Bernstein, at no extra cost! Does Your Current Policy Allow You to Take an Advance Against the Face Amount at No Cost? Learn How You Can Get Money From Your Life Insurance Policy. Living Benefits Life Insurance by Ted Bernstein Boca Raton
Life Insurance is benefiting from innovations in medicine, prevention and intervention. These innovations lead tolower premiums. Policies from only 5 years ago are obsolete in terms of price and features. For most people, being older does not matter; rates are dropping at a faster pace than we are aging and the coverage is getting better too. Catastrophe Insurance For Critical Health Problems by Ted Bernstein Boca Raton
Call us today at 561-869-4500 to upgrade your policy to one with living benefits, either for term or permanent policies.
The following link answers the most basic questions about the value of adding living benefits to your coverage:Living Benefits Life Insurance by Ted Bernstein Boca Raton
Our job is to guide you through the selection process to make sure you get a policy with all the living benefits (critical, chronic, terminal) and the lowest premiums. We offer policies that most other agents can not offer you. Because we have been selling living benefits coverage since 2013, we are market leaders for A+ carriers specializing in living benefits. Living Benefits Life Insurance by Ted Bernstein Boca Raton
Want to learn more? Please contact me at 561-869-4500 or by email. I will clarify and answer any questions on a complementary basis.”
