insurance

How can life insurance help pay for college?

 

*The information being provided is strictly as a courtesy. When you link to any of the web sites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided on these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third party technology, sites, information and programs made available through this site. By clicking on the link above you will leave our web site and assume total responsibility and risk for your use of the site you are linking to. The information provided on these sites is not intended to provide specific advice and should not be construed as a recommendation for any individual. Before making any investment decisions you should consult with a financial, tax and/or legal professional. Products advertised may or may not be approved for purchase through NPC. Please note any and all guarantees made are contingent upon the claims paying ability of the insurance company.

Three Key Ingredients to Building a Satisfying Financial Solution

Now, more than ever before, there is incredible turbulence and chaos in the economy.

But, there is hope, and it comes in the form of a solution far too many Americans ignore...

 

 

*The information being provided is strictly as a courtesy. When you link to any of the web sites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided on these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third party technology, sites, information and programs made available through this site. By clicking on the link above you will leave our web site and assume total responsibility and risk for your use of the site you are linking to. The information provided on these sites is not intended to provide specific advice and should not be construed as a recommendation for any individual. Before making any investment decisions you should consult with a financial, tax and/or legal professional. Products advertised may or may not be approved for purchase through NPC. Please note any and all guarantees made are contingent upon the claims paying ability of the insurance company.

Estate Planning with Life Insurance

How to plan an estate using Life Insurance

Having a will in place will only get you so far

 

*The information being provided is strictly as a courtesy. When you link to any of the web sites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided on these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third party technology, sites, information and programs made available through this site. By clicking on the link above you will leave our web site and assume total responsibility and risk for your use of the site you are linking to. The information provided on these sites is not intended to provide specific advice and should not be construed as a recommendation for any individual. Before making any investment decisions you should consult with a financial, tax and/or legal professional. Products advertised may or may not be approved for purchase through NPC. Please note any and all guarantees made are contingent upon the claims paying ability of the insurance company.

Annuity Maximization

Get the most out of your Annuity. Life Insurance can help.

 

*The information being provided is strictly as a courtesy. When you link to any of the web sites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided on these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third party technology, sites, information and programs made available through this site. By clicking on the link above you will leave our web site and assume total responsibility and risk for your use of the site you are linking to. The information provided on these sites is not intended to provide specific advice and should not be construed as a recommendation for any individual. Before making any investment decisions you should consult with a financial, tax and/or legal professional. Products advertised may or may not be approved for purchase through NPC. Please note any and all guarantees made are contingent upon the claims paying ability of the insurance company.

Using Life Insurance to Maximize Your Pension Benefits

When you think of life insurance you often think of something that you ‘should’ have and you may not have fully taken part of this level of peace of mind.  Life insurance can help you as you approach retirement and prepare your estate; it will allow you to maximize your defined benefit qualified pension plan.  While some employers are moving away from using pensions, many people who are approaching retirement age may still be contributing to a pension plan.

This method of using life insurance while coupled with a pension plan is known as pension maximization. This strategy of maximizing a pension payout is specifically for those who are married. Pension maximization allows the holder of the pension plan to maximize pension payouts while gaining the death benefit protection for their spouse.

Steps for taking advantage of Pension Maximization

  1.  Read the parameters of the pension plan and discover what it includes.  Does it include health insurance or other similar benefits?
  2.  Are you healthy enough to take out a life insurance policy?
  3.  Make the decision that you will use the “Life Only Benefit” payout option.
  4.  Take out a life insurance policy to supplement the “Life Only Benefit” payout before the time of retirement.
  5.  List your spouse as beneficiary of the life insurance plan.

Pension Maximization strategy will allow the holder of the pension plan control, protection, and peace of mind that their spouse will be secure after their passing.  Upon the passing of the plan holder the spouse will receive death benefit from the life insurance policy, which is generally income tax-free but will not receive any more funds from the pension plan.  

 

 

*Products or strategies advertised may or may not be approved for purchase through NPC. Please note any and all guarantees made are contingent upon the claims paying ability of the insurance company.

 

 

Long Term Care Insurance

Plan for you future, today

Why Long Term Care Insurance?

  • Allows you to stay at home for home care, instead of being forced into a nursing facility.

  • Keeps retirement assets to be used as they were intended, your retirement.

  • Removes the burden placed on your Family and Friends

    • Presently, the cost for long-term care in NJ may exceed more than $65,000 a year.

    • The current average length of stay in a long term care facility is 2½ years.

Benefits include: home care, assisted living, nursing homes, adult day care or Hospice

  • Financial protection against the cost of care

  • Extensive coordination of care

  • Coverage when recovery is longer than 90 days or ambiguous

  • Pays for out of pocket expenses for each day the insured is confined in a care facility

* Nationwide, Medicare only pays approximately 5% of all LTC expenses.

Coverage becomes active based on the inability to perform Activities of Daily Living
If you are unable to do two or more of these six activities, your long term care insurance will
assist you financially: Eating, dressing, bathing, continence, toileting and transferring.

Help protect your assets, your loved ones, and your independence.
*http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm

November is Long Term Care Awareness Month

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We will spend the rest of November posting LTC (Long Term Care) information, answers to these common LTC questions and much more!

 What does long term care mean and how can it effect you and your family?

 What is LTC? What does LTC include? What Does LTC Cost? What are options to pay for LTC? What is the likelihood you will need LTC? Does Medicare cover LTC costs?


  Keep an eye on our social media pages and our website for more information

 Visit our website: beaconfinancialgroup.net

Contact: MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

 

Resources We Recommend:

longtermcare.gov

http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm

Long Term Care Facts

Did you know that significant advances in medical technology and healthcare means that people are living longer than ever before?

 

The government predicts that 70 percent of people over 65 will need long-term care for some period, so it’s likely it could happen to you.

 

Please visit longtermcare.gov and beaconfinancialgroup.net and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

 

What Does LTC (Long Term Care) Include?

  • Assistance with activities of daily living (ADL's) such as eating, bathing, dressing, toileting, transferring, continence.

  • Around-the-clock skilled nursing care for those with prolonged physical illness, disability, or cognitive disorders, such as Alzheimer's.

  • Custodial care in an Assisted Living Facility.

  • Homemaker care, Adult Day care, Hospice care, Respite care.

  • Personal care for basic instrumental activities of daily living (IADL's), such as cooking, cleaning, laundry, or bill paying.

 

Please visit: http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm and http://www.beaconfinancialgroup.net/

and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

 

How Can You Pay for LTC (Long Term Care)?

 

 

  • LTC Insurance

  • Life Insurance with LTC Benefits

  • Annuities

  • Self Funding

 

As our population grows, new financial products are offering yet more options.

 

Please visit: http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm and http://www.beaconfinancialgroup.net/

and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

What role will families play in future caregiving?

 

We would like to share this article with you. Please read this and share with your family members:

http://www.wiscnews.com/news/opinion/mailbag/article_2d1a429e-c3cf-5930-85f7-5099870c4f38.html

 

November is Long Term Care Awareness Month – and the timing couldn't be better.
Throughout the holiday season, families gather to celebrate. This family-focused time also presents an ideal opportunity for families to share their plans for an extended-care event.


Also visit beaconfinancialgroup.net and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs

What is the likelihood you will need LTC?

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What is the likelihood you will need LTC? That someone you love will need LTC? and What will it cost?

One national study, which projected nursing home use, suggested that,  among people who live to age 65, one in four would spend at least one year or more in a nursing home or other type of long-term care facility.

Presently, the cost for long-term care in New Jersey may exceed more than $65,000 a year. The current average length of stay in a long-term care facility is 2½ years.

Please visit http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm and beaconfinancialgroup.net and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

 

Won't the government pay for Long-Term Care services?

The Federal government will not pay for LTC services directly unless certain criteria are met under two different federal health programs: Medicare and Medicaid.

  • Medicare will pay for limited LTC services, but only under strict circumstances.
  • Medicaid will pay for full long-term care, but individuals will essentially be required to redeem their assets and spend down most of their cash prior to becoming eligible for Medicaid.

 

Please visit http://www.state.nj.us/dobi/ins_ombudsman/ltcguide.htm and beaconfinancialgroup.net and contact MichelleJacoby@beaconfinancialgroup.net to assist in learning and planning for LTC needs.

Do you know the difference between term, whole, and universal life insurance?

Do you know what kind of life insurance you need?

When loved ones depend on your salary, the type of life insurance you have is a vital
component of your overall financial plan. Upon your death, a life insurance policy will pay your beneficiary a lump sum that can replace lost income, reduce or eliminate debt, cover funeral expenses, and/or educate your children.

There are three types of life insurance to choose from:

1. Term Life Insurance, which covers an individual for a specific period of time (a
“term”). The length of the term depends on the specific policy you choose, but common
options include 5, 10, 20 and 30 year options. There are two types of term life insurance:

  • Annually Renewable Term: Premiums start lower and increase each year.
  • Level Guaranteed Term: Premiums and death benefit remain level for the entire term of the policy.

Term life insurance policies have the least expensive premiums compared to other types
of life insurance.

2. Whole life insurance, which provides long term benefits, guaranteed premiums and
guaranteed death benefits. A distinct difference between term and whole life is that
whole life has the added benefit of “cash value” potential. With whole life:

  • A portion of your premium goes towards building cash value from investments made by the insurance company.
  • When the investment turns a profit, the policyholder benefits.
  • Loans can be taken against the cash value because whole life policies have an investment and return component (known as the “cash value”).

Whole life insurance premiums are the most expensive of all types of life insurance.
While you will pay more for a whole life policy, as opposed to a term life policy, premium
rates are locked for life and your policy will never expire.

3. Universal Life Insurance (UL), which is a type of flexible, permanent life insurance
that offers the low-cost protection of term life insurance, as well as a savings element
that is invested to provide a cash value build-up. Universal Life Insurance policies:

  • Are flexible – the death benefit, savings element and premiums can be reviewed and altered as a policyholder’s circumstances change.
  • Allow the policyholder to use the interest from his or her accumulated savings to help pay premiums.
  • Have a flexible premium that can adjust to changing needs. Your policy’s cash value earns interest based on a contractually stated financial index (or a blend of indices), and this growth is tax deferred. You can access your cash value almost anytime, tax-free (as long as the policy remains in-force).

Insurance premiums on individual life insurance policies are generally based on the type
and amount of insurance you buy and your chance of death while the policy is in effect,
as determined by your lifestyle habits (e.g., smoking), age, and medical
condition/history. For more information, contact Beacon Financial Group to speak to an
experienced, licensed advisor: 908-769-4333 x112 or
michellejacoby@beaconfinancialgroup.net.

 

 

-The information contained in this article is for general information only. It is not intended to provide specific advice or recommendations for any individual and does not constitute an endorsement by NPC. Please consult with your financial professional before taking action
-Insurance guarantees are based on the claims-paying ability of the issuer.
-Policy loans and withdrawals will reduce the policy's cash value and death benefit. Loans are subject to interest charges.

 

Top 10 Reasons to have Life Insurance

The need for life insurance can be broken down into three basic reasons: You die too
soon, you live too long, or you unexpectedly become ill.

These general reasons have been broken down even further to create the top 10
reasons to obtain life insurance:

1. Income replacement

Upon your death, a life insurance policy’s death benefit can cover the income you bring to your family. If one providers dies, whether an income (working outside the home) or time (stay at home parent caring for children) provider, that contribution needs to be replaced.

2. To cover burial and final expenses

When a loved one dies, no one wants to worry about funeral costs or bills. Earmarking a portion of the death benefit or having a final expense policy is always a good idea, even if you don't need the income replacement.

3. Mortgage protection

Many people figure out how much life insurance they need by how much they owe on their mortgage. For example, if someone has a $250,000 mortgage with 20 years left, they want to make sure their life insurance will cover that mortgage, so they may take out a $500,000 policy with half earmarked to cover off the mortgage and half as income replacement. The amount will depend on your age, the age of your children and the amount of your mortgage.

4. Locking in your age and health

You're only as young and healthy as you are today. The best way to get a low premium is to lock it in at a young age and when you’re in good health.

5. Transferring wealth

Leaving money to your family within a life insurance policy as part of your estate is a good way to protect your assets and transfer your wealth to your family as the beneficiaries.

6. Tax advantages

Life insurance can build up cash value. Within an IUL, UL, or a Whole Life policy, you have the potential to build up cash value that could be used as a tax advantage.

7. College education fund

A death benefit can help to ensure that college or college loans are paid for even if the policyholder is no longer around.

8. Evolving product options

Revisit your life insurance with an adviser because things change - your 30 year mortgage becomes a 10 year mortgage and your kids are out of college, so you may no longer need a term policy but you may wish to invest in a cash accumulation policy so you can have a second tax free income stream.

9. Employer provided life insurance policies

Take a close look at employer provided life insurance policies because they may not adequately cover your family's needs and usually do not transfer so if you are terminated from an employer your life insurance policy usually does not come with you.

10. Pay estate taxes and create estate liquidity

When an estate is inherited, income taxes have to be paid - life insurance can step in and cover those costs. Many people, especially those with a high net worth, use life insurance to help their beneficiaries pay estate taxes.


Obtaining life insurance as soon as possible and continuously revisiting your life
insurance policies and options is in your best interest and your family’s interest. Make
sure your dreams and goals are brought to fruition, whether you're here or not.
Insurance premiums on individual life insurance policies are generally based on the type
and amount of insurance you buy and your chance of death while the policy is in effect,
as determined by your lifestyle habits (e.g., smoking), age, and medical
condition/history.

For more information, contact Beacon Financial Group to speak to an
experienced, licensed advisor: 908-769-4333 x112 or
michellejacoby@beaconfinancialgroup.net.

 

 

 

-The information contained in this article is for general information only. It is not intended to provide
specific advice or recommendations for any individual and does not constitute an endorsement by
NPC. Please consult with your financial professional before taking action
-Insurance guarantees are based on the claims-paying ability of the issuer.
-Policy loans and withdrawals will reduce the policy's cash value and death benefit. Loans are subject
to interest charges.
-NPC does not provide tax nor legal advice.

 

 

 

 

 

How does Indexed Universal Life Insurance work?

An Indexed Universal Life insurance policy is different from other types of life insurance
because a portion of premiums paid are credited based on the performance of a particular financial index – such as the S&P 500 Index. If the index rises, the IUL account is credited with interest. However, if the index falls, your IUL account does not decrease, you do not lose anything. This is due to the fact that the IUL policy is a guaranteed life insurance product.

Here is how it works:
• A portion of premiums are invested in a financial index such as the S&P 500 (or other
investment allocations)
• As the premiums accumulate, the cash value of the policy grows based upon the
performance of the allocations.
• IUL has a built-in zero percent interest-crediting floor, so an IUL policy will not lose value
due to a decline in the index.
• Tax Free distributions of cash accumulation can be triggered anytime, typically around
age 65 to assist with financial needs in retirement.

Here are some features of an IUL:
Safety - IUL accounts are guaranteed to never lose your principle due to market
downturns.(i)
Liquidity - You have access to your funds after the first year with no penalties.(ii)
Flexibility – Premiums and Death Benefits are flexible.(iii)
Taxes - An IUL cannot be taxed on distributions as long as it’s structured properly.
There is no tax on the growth. If you pass away, there are no taxes for your heirs.(iv)
Growth Potential - The potential for growth is much higher than qualified plans.
Contributions - No maximum on the amount of contributions.
Death Benefits - A death benefit is provided on all plans.(v)

The S&P 500 is so often used because it is broad based, even during volatile periods of the
market; depending on the policy the guaranteed gain could be approximately 2-3%.(vi)
Participation and Index Crediting - The gains from the index are credited to the policy
based on a percentage rate, referred to as the "participation rate". The rate is set by the
insurance company. It can be anywhere from 25% to more than 100%. For example, if
the gain is 6%, the participation rate is 50% and the current cash value total is
$10,000, $300 is added to the cash value [(6% x 50%) x $10,000 = $300].

Caps – Policies have a “cap” rate. The “cap” determines the maximum amount of
interest that can be gained and credited to the policy. In generally policies offer
everything from no cap to 13% cap.

IULs are also flexible. If the funds grow faster than expected and the policyholder wants to
trigger the income stream earlier, he or she can do that - the same is true for a policyholder who wishes to wait an extra 5 years before disbursement. Even the amount contributed in a year can vary, though there is a minimum annual contribution required to keep the policy active.(vii)


IULs can be used for retirement planning, annuity maximizing, and estate planning. They may
also be used as tools for lowering the tax burden on an estate and providing a tax-free stream of income.


By consulting with Beacon Financial, clients gain an important ally on their journey toward
financial strength and stability. To find out if an Indexed Universal Life policy is right for your
goals, contact Beacon Financial Group at (888) 769-4333.


How is your policy working for you?

 


(i) It’s entirely possible that you could pay premiums every year and end up with NO cash value and NO death benefit, if the stock market indexes used don’t perform as projected.
(ii) Failure to meet premium requirements may result in a lapse in the policy and participation in the Index Accounts. The Index Accounts are subject to caps and participation rates. The surrender charge varies by product, gender, issue age, underwriting class and duration.
(iii) If you miss or delay making premium payments or loan repayments, which can reduce how long your death benefit guarantee stays in effect. And it can even void the guarantee altogether.
(iv) The tax-deferred feature of the indexed universal life policy is not necessary for a tax-qualified plan. In such instances, you should consider whether other features, such as the death benefit and optional riders make the policy appropriate for your needs. Before purchasing this policy, you should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.
(v) The death benefit of an EIUL policy, like the premium, is flexible. The death benefit is not guaranteed—unless you have a no-lapse guarantee. If you have that guarantee, it simply means you’ll have a death benefit. But it doesn’t guarantee you’ll have any cash value, if the index performance is poor, or if costs go up, or both. And with no cash value to fall back on, you’ll have to continue to pay premiums out of your pocket to keep the death benefit in force.
(vi) Permanent life insurance requires monthly deductions to pay the policy’s charges and expenses, some of which will increase as the insured gets older. These deductions may reduce the cash value of the policy. Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. Therefore, the planned periodic premium may not be sufficient to carry the contract to maturity. The Index Accounts are subject to caps and participation rates. In no
case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional detail. The policy’s death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured’s death.
(vii) Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse taxconsequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

 

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through Beacon Financial Group, a Registered Investment Adviser. Beacon Financial Group and NPC are separate and unrelated companies.