Reader’s Question:

I’ve been getting mixed advice on annuities from reliable sources here in South Bend, Indiana IN. My mother thinks they are great but my sister likes other forms of investment. Who can be right in this regard?

Julia

South Bend, IN

I think they are both right in this case. Your investment portfolio should be diversified among the different investment options available in South Bend, Indiana IN. Your brother sounds like he leans toward risk-return type funds while your father likes annuities as one of the items that should be in a balanced portfolio. What you can do is to classify your investments and determine your comfort level on percentage basis. Then you can go ahead and invest within those percentage parameters.

Fixed annuities are investments whose values are guaranteed not to decrease over time. Actually, the value would increase at a pre-determined interest. Remember that every portfolio can use an annuity investment like that. You can choose to set your payments to begin at your retirement age.

Essentially, any annuity investments usually provide a better shield against inflation. The ideal portfolio should also include some of the aggressive investments, which your sister is suggesting to you. I also think annuities are a stable safety-net and a good source of tax-deferred income. Meet with your financial planner or your insurance in South Bend, Indiana IN and set your long-term goals.

Tags: annuities, annuity, annuity leads, annunity

Reader’s Question:

My wife and I are beginning to plan our financial future in Orlando Florida, FL. Our parents keep suggesting life insurance and there are just so many plans out here in Florida. I just need to know one big reason why I need to prioritize life insurance.

Andrei

Orlando, FL

Life insurance has been around for a long time now. If your wife and children are relying solely on your income, life insurance can fill that void if you die prematurely.

There are life insurance policy owners I know who do not want their estate to be burdened with various estate taxes in Orlando Florida, FL. Payment of these taxes often causes liquidation of certain estate assets and this is one among the many aspects how life insurance can protect you.

There are other life insurance policies which are also established for the benefit of a charity. In most cases, the benefit reaps a bigger reward for the charity than if you contributed the amount of the premiums.

There are certain life insurance policies which build tax-deferred cash value. If necessary, such is available to be used by the owner. You can combine this form of savings with a guaranteed death benefit and you will have security for your and your bride’s future.

Life insurance looks pretty appetizing to most people, especially young starters like you who want to be assured of a great life in the future. I strongly encourage you to talk to your agent in Orlando Florida, FL and get the whole scope of life insurance programs.

Tags: life insurance, life insurance benefits, life insurance coverage

Reader’s Question:

What is unique about permanent life insurance aside from the cash value when it comes to insurance benefits here in Orlando, Florida FL?

James

Orlando, FL

Hello James

Aside from the cash value, permanent life insurance has unique features when it comes to premiums. For a whole life insurance, you are locked on the premium from the time you pay up to your 100th year. This is contrary to term life insurance which changes every time you renew because the premium will determine your age and health. Naturally, as the years passed, your age increases and so does your premiums as you renew. For another type of permanent life insurance which is universal life insurance, you can be flexible in amount of payment based on prevailing interest rate. If the rate is high, you will pay lower premium because the interest will increase the cash value even if you pay less. But if it is low, you pay higher premium to cope with the cash value.

Another unique feature of permanent life insurance is you can borrow the money and use it for whatever purpose you want in the future. Since it is borrowed, it needs to be returned to keep the cash growing. After all, it won’t accumulate to greater value if it has limited cash.

Also, with permanent life insurance you can pay your premiums with the accumulated cash. But you should not be using the accumulated cash for payment excessively otherwise you will be at risk to lapse the life insurance. You have to maintain a minimum level to keep the life insurance enforced.

Tags: life insurance, life insurance plan, permanent insurance, whole life insurance

Reader’s Question:

What does it mean to have convertible term life insurance in Orlando, Florida FL?

Merlin

Orlando, FL

Hello Merlin

A convertible term life insurance means that you can convert it to any type of permanent life insurance in the future – that is if the term life insurance is at force. This is good if your needs will change in the future. For instance, it may be that you thought your kids will live you soon so you decide to convert the term life insurance into life insurance with cash value. The conversion is favorable because you don’t need to pass through any insurability requirement to get the permanent life insurance unlike if you simply buy it separately. If you buy new permanent life insurance and just leave the term life insurance to lapse, you will go through the application process and medical examination for the permanent life insurance.

You would know if your term life insurance is convertible or not through the policy itself. Or if a life insurance agent in Orlando FL approaches you and give you term life insurance proposal, better ask if it is convertible. Some term life insurance does not have this feature while others do have. If you really need this, you can search for life insurance companies in Orlando FL who offers convertible term life insurance through online or telephone inquiry.

Tags: life insurance, life insurance benefits, life insurance claims, term insurance, term life insurance