Life Insurance: How much and which type is right for you?

May 17th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Insurance Planning - (0 Comments)

According to some financial advisors, life insurance is as much a basic part of smart financial management as having a savings account for emergencies. Especially if a person has a significant other or children, life insurance provides a financial safety net in case something horrible goes wrong. Without that safety net, a person’s estate and family will be left in an immediate, financial lurch without any ability to fix it right away. Even creative financial planning techniques may not be enough when the damage is done.

A life insurance policy represents insurance coverage that, if a covered person dies, will pay out an agreed-upon sum of money to a named beneficiary. In return, the policyholder pays a monthly or quarterly premium to the insurer to keep the policy active. Doing so provides a financial buffer for the beneficiary, especially for immediate, temporary income replacement.  Even for wealthy families with a high net worth may need liquidity.  If the assets have to go through probate or other litigation or an asset is not easily liquidated like a residence other money may be necessary.  Paying mortgages, day to day living and many other expenses may arise during this often difficult time.  Life insurance may help to create the immediate needed liquidity.

 

There are a few types we will discuss: term life insurance and permanent life insurance.

For people in their early family years with competing demands, term life insurance may be the most practical approach. Term life provides a straightforward insurance coverage for a set dollar amount while the policyholder pays a specific premium. The term period can range but typically can be up to 30 years. If, at the end, nothing occurs then the insurer keeps all the premiums paid. The policyholder then has to go and find a new policy, usually at a higher price. That said, term life works very well as a basic coverage to provide a safety net for a specified period.

Permanent life insurance lasts for as long as the policyholder is alive and pays his premiums; ergo the name “permanent,” insurer can’t end the policy. This provides life insurance well into a person’s later years when a new policy would be extremely expensive. Created early enough, having life insurance in one’s later years can be a boon to senior retirement savings for a remaining spouse, especially in hard times.

Determining how much coverage depends on your needs.  It may be to replace a lost income source for a family or create liquidity as we mentioned earlier.  It can be used for individual losses or business losses, both resulting in the death of an individual.  A financial plan can help you determine which type and how much coverage is appropriate.

While there are many types of life insurance available, you should consult with your financial advisor to review which type is best suited for you and your needs.

 

*** Life Insurance policies are subject to substantial fees and charges. Guarantees are based on the claims paying ability of the issuer.

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Life Insurance and Protection Planning

April 12th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Insurance Planning - (0 Comments)

Financial planning is more than just building wealth and reducing debt.  It also involves understanding and planning for life’s uncertainties.  Protecting your financial strategies in the event of your death can help you and your family in many ways and also ease some of the burden when dealing with the loss of a loved one.  A good wealth management strategy will not just help you grow your wealth but also help protect it.
Your first step towards protecting you and your family should be to understand and analyze your financial strategy if your income was no longer supporting the family.  Analyzing what those needs may be today and in the future can help you better prepare for those uncertain events.  Determining how much and what types of life insurances are appropriate can be determined by what is called a needs and human life value analysis.  Meeting with a competent financial advisor can help you save those hard earned dollars rather than leaving it to chance.
Don’t make the mistake so many people do each year by not learning more about life protection planning.  Life insurance can help offset taxes, create liquidity, and help to supplement a future income source and much more.  Speak with your advisor today for more information and start protecting your family.

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Florida Financial Advisors, Local

December 1st, 2011 | Posted by Sickle Hunter in Education Planning | Financial Planning | Insurance Planning | Investments | Retirement Planning - (0 Comments)

When you decide to make the move to Florida the hope is that you can continue living a lot of the parts of your life comfortably from the warm weathered comfort of your Florida home. When it comes to managing your accounts and investments there is a great option of Florida financial advisors, with the folks at Sickle Hunter Financial Advisors.

Financial planning as we have all come to realize has many elements with day to day minute to minute adjustments. While most of us are not particularly interested in micromanaging our accounts it is nice to have a nearby person available for discussion when markets seem uneasy. It is also nice to just be able to check on your financial planning Florida and know that the person is nearby. Changes being made to accounts and general understanding of where your money is moving and why can be hard to explain and sometimes it is just better to hear it from the horse’s mouth. Rather than untangling a web of cumbersome email exchanges from New York you can talk to a living person and get a handle on your finances.

Living in Florida should not lead to an ineffective strategy for your money. With Sickle Hunter you can stay on top of your finances without long distance fees.

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Disability Insurance for the Invincible

November 29th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Insurance Planning - (0 Comments)

Are you healthy, working and feeling like nothing can stop you?  Have you ever considered what would happen to your financial situation if your health took a turn for the worst and you couldn’t work?  Understanding what disability coverage is and how it can protect you is vital to your financial life.  According to the U.S. Social Security Administration, “a 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age.”  These are not odds you want to play against, especially not with your financial security.

Disability coverage, also called income protection is a type of insurance that pays out in the event of your inability to work due to health reasons.  Typically you will find disability coverage at work but you can also apply for individual policies and supplemental coverage as well.  Disability coverage is also available through the social security administration, the wait time for approval or denial of applications varies and may take up to several months –during which time you may find it difficult to pay your bills.  Long term disability coverage through work typically covers 60-66% of your compensation.  This is not always to case so check with your human resources department for the details on your specific coverage.

When it comes to disability coverage you may want to consider what your expenses will be in the event of your disability.  These expenses are the necessities of life that basically keeps a roof over your head and food on the table.  You may also want to consider the amount of money you are currently saving for retirement as not all disability policies will cover you for life.  The last bit about having enough coverage is the fact that group coverage may not cover all of your needs.  So be sure to have a professional review your current coverage and get the amount that fits your financial profile.

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Diversity In Your Accounts

November 23rd, 2011 | Posted by Sickle Hunter in Education Planning | Financial Planning | Insurance Planning | Investments | Retirement Planning - (0 Comments)

Investing your entire economic future in one institution pretty much went out the window in 2008. As we watched accounts decline on bubbles bursting it became clear that one potential strategy in working toward some sort of financial future was to have your family’s money invested in a number of different places. The more diverse your portfolio the less potential impact the decline of a single investment may have on your portfolio.

Of course managing just one bank account for many of us can get a bit unwieldy. That is why so many people now develop relationships with a trusted wealth manager who can keep track of markets and information about where your money is and what those institutions are up to. No one can predict the future and knowing all the ins and outs of a wide array of financial institutions is impossible. That is why a firm of Florida financial advisors working together is of particular importance. The variety of voices and experience can assist with strategies designed to help ensure your money is preserved in a stable way that may also allow your wealth to mature over time.

Diversity makes things more complicated true but with the assistance of trusted professionals you may be better equipped to pursue your desired results.

*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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