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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How to get a Financial Boost

December 25th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Retirement Planning - (0 Comments)

Times are tough right now and it may be hard to see the light at the end of the tunnel.  Volatility in the markets may seem never ending and certainty often appears lost.  Don’t give up and run for the hills just yet!  Reevaluate your financial plan and what you have set for your short term and long term goals.  Do you have enough cash in case of an emergency?  Do you have enough insurance coverage in the event you are sick or injured?  Getting back to the basics may help you to understand where you are headed.  Don’t let the news headlines of today sway you into making irrational decisions that will affect you negatively tomorrow.

Here is a little history lesson from the life of Abraham Lincoln:

*1831 – Failed in business
1832 – Defeated for legislature
1833 – Again failed in business
1834 – Elected to legislature
1835 – Sweetheart died
1836 – Had a nervous breakdown
1838 – Defeated for speaker
1840 – Defeated for elector
1843 – Defeated for Congress
1846 – Elected for Congress
1848 – Defeated for Congress
1855 – Defeated for Senate
1856 – Defeated for Vice-President
1858 – Defeated for Senate
1860 – ELECTED PRESIDENT

Look at all that failure.  You might not have thought that Abraham Lincoln had so many failures in life and that’s the point.  It’s the end result that really matters.  Reaching your goals and investing may take a lot of discipline.  It may feel uncertain at times but having a well thought out financial plan may increase your chances of reaching your goals.  Getting guidance from a financial advisor who can help guide you to a successful retirement may be just what you need.

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Financially Bulletproof

November 12th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Insurance Planning - (0 Comments)

Or close to it.  Not all bullets can be stopped but you can suit up to protect yourself against them.  Insurance to offset a financial hardship is often a good idea.  The old saying, “nobody plans to fail, they fail to plan” is all too often true when it comes to insurance planning.

Having disability coverage to help supplement lost wages due to a sickness or injury while out of work can ease the burden on you and your family.  Life insurance can help support a family financially after the loss of a loved one.  Long term care can help ease the financial burden of costs associated with assistance in old age or illness. Life expectancy is up to 77.9 years old as reported by the center for disease control and prevention. (www.cdc.com)

Even a small setback can greatly impact your ability to reach your financial goals.  Getting a review of your current coverage is a good idea to help make sure you aren’t taking unnecessary risks.  Speak with your financial advisor to learn more on how you can make yourself financially bulletproof.

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Welcome to Sickle Hunter Blog!

October 1st, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Uncategorized - (0 Comments)

When it comes to your finances and setting up for your future, it means everything. Especially in a time now where we’re dealing with a financial crisis, it’s more important than ever to have the right savings and financial set up to support you as you and your family get older. But it can hard to know what the right steps to take are when doing it on your own. But you don’t have to be alone in the process.

Sickle Hunter Financial Advisors can work with you, as an independent financial company you can trust. If you live in the Florida area and have been looking into wealth management firms, look no further. With unbiased and honest advice, we’ll guide you to make informed decisions for your income, in an effort to provide a solid future for your retirement. Our wealth management consultants are experienced and eager to help. You let us know what your goals are and we’ll do what we can to set up a plan that will let you pursue them.

So bookmark our blog for more information on what we do, our upcoming events, and some basic tips and knowledge.  We believe everyone should know about their finances!