Life Insurance is a unilateral contract between an insurance company and the contract owner/policy holder where the insurance company promises to pay designated beneficiary a sum of money upon the death of the insured. There are two main types of life insurance: Permanent Life Insurance and Term Life Insurance, and both types have differentiating features.
Here are some common reasons why people purchase life insurance:
1) For funeral expenses of the deceased person
2) For estate liquidity, if state and federal taxes may be due upon death
3) For future income needs of dependents, typically surviving spouse and children
4) For future education expenses (for policies with cash value—not requiring a death to access the funds)
5) For payment of a mortgage of the person who passed away
6) For payment of any outstanding debts of the person who passed away
7) For probate avoidance, since products, accounts & investments with a beneficiary designation avoids the courts getting involved in the re-registration of assets when someone dies.
NetVEST advisors are licensed to offer a diverse portfolio of life insurance policies focused on protecting you and your loved ones. Whether you have short- or long-term needs or are more focused on death benefit protection or building cash value, we have a policy that can help you. We offer a number of temporary and permanent policies.
We are living longer and retiring earlier. This means you will need more money to fund your retirement than past generations. With the unpredictability of Social Security and limits on the amount of money allowed to fund 401k plans and IRA’s, an annuity can be an integral part of a sound financial strategy.
Annuities are contracts sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement. All annuities are tax-deferred, meaning that the earnings cannot be withdrawn without penalty until a specified age. Some types of annuities guarantee a certain payment amount, while others do not, providing the potential for greater returns. Relatively conservative annuities are not geared to be high-yielding investments. An annuity has a death benefit equivalent to either the current value of the annuity or the amount the buyer has paid into it, whichever is greater. If the owner dies during the accumulation phase, his or her heirs will receive the accumulated amount in the annuity. This money is subject to ordinary income taxes in addition to estate taxes.
Annuities can also be customized with protection options, from guaranteed accumulations to secure lifetime income, and more. Though such options incur at an additional charge, they provide you with the flexibility to create a product that addresses your personal financial situation.
- Additional note:
Some fixed and immediate annuities are often sold by insurance agents, who are not licensed by FINRA to sell securities, and therefore, do not take on the liability and fiduciary responsibility of the products they sell. We at NetVEST highly recommend that you check the licensures of any individual selling an annuity.
Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. There is a surrender charge imposed generally during the first 5 to 7 years or during the rate guarantee period.
Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company, not an outside entity. Investors are cautioned to carefully review an index annuity for its features, costs, risks and how the variables are calculated.