Understanding and Planning Your Insurance Needs
Too often, we take our ability to generate an income for granted. Only when we lose that ability do we truly appreciate what we had. Unfortunately, by then it’s too late. We are all required to have car insurance and homeowners insurance. Life, Disability, Long Term Care and Annuities are all insurance products, that may or may not be necessary or feasible for your situation. The one thing that remains consistent and true, is that they all have their place and having a plan surrounding risk management is equally as important as investing in the markets.
At Webb Financial Group, we are not held to use any particular company or product. We use a wide range of risk management tools to help protect the things you care about most. Your advisor can assess income replacement strategies that will help give you and your family the financial strength and peace of mind that comes only from being protected. Income replacement strategies may include:
An essential part of preparing your financial future is choosing the right life insurance to cover you and your family. Your advisor can guide you in reviewing term, variable, universal, and whole life policies from a variety of top carriers. Beyond the analysis, we will help you determine how much life insurance is necessary to meet your long-term objectives.
If you think illness or accidents only happen to others - think again. The odds of you becoming disabled are greater that you might realize. There is no way to know if you will ever experience a disability and lose your income for an unknown length of time. We can assist you in compiling a plan that will provide for your standard of living should you become disabled and no longer have an income.
A well-rounded life plan includes facing some unpleasant facts. Many of us may need assistance in performing daily activities as we age. Long-term care insurance will help you to safeguard a dignified lifestyle, protect your independence, and provide you with the freedom of making your own decisions regarding your standard of care (whether at home or in a nursing home).
Long-Term care insurance will:
Protect personal assets and provide financial security
Minimize dependence on other family members
Provide greater choice in selection of long-term care settings (nursing homes and assisted living facilities)
Selecting the right long-term care insurance will offer you and your family peace of mind.
Annuities - Providing income you will not be able to outlive
Annuities are investments issued by a life insurance company. Their primary functions are to accumulate money on a tax-deferred basis and provide an income you will not be able to outlive. Annuities can be an important part of a retirement planning strategy.
A Fixed Annuity is a conservative product that guarantees a fixed rate of interest. It also features triple compounding interest which is deferred until you take money out of the contract. The three compounding interest components are:
Interest on the principal
Interest on taxes you didn't pay
Interest on interest you accumulated are Indexed Annuities
The Indexed Annuity
Combines all of the benefits of the Fixed Annuity along with an additional benefit. Unlike the Fixed Annuity, the Indexed Annuity gives you the opportunity to participate in the growth of the stock market. In addition, any gains you realize are locked into your account. If the market turns downward, you stay at the previous level.
Single Premium Immediate Annuity
The Single Premium Immediate Annuity is designed to pay you an income that you cannot outlive. In exchange for a sum of money, the insurance company guarantees to pay you a monthly income for a certain period of time or for the rest of your life.
Variable Annuities function as a tax-deferred investment with insurance-like properties. This insurance contract offers tax-deferred earnings and the ability to name beneficiaries. Annuitization allows you to receive payments for life, based on your life expectancy.