fbpx
Who Really Needs Whole Life Insurance

Who Really Needs Whole Life Insurance

DO YOU REALLY NEED WHOLE LIFE INSURANCE?

I was asked earlier whether a person should purchase a whole life insurance policy.  I strongly believe that whatever financial decision a person makes, there are always pros and cons.  The closest thing to a perfect financial decision you will make, is the one that best suits your needs.  Life insurance is no different. 

TERM LIFE INSURANCE VS WHOLE LIFE INSURANCE

There are two primary categories of life insurance:  Term Life Insurance and Whole Life Insurance.  Think of Term Life Insurance vs Whole Life Insurance in terms of renting vs purchasing a home. 

When purchasing a term life insurance policy, you do not own it.  It acts as a lease with a specified end date.  However, if you were to pass away or become chronically ill, the death benefit would either go to your dependents or go towards paying off your medical expenses so that your quality of life would not be impacted. 

Whole Life Insurance is different in that you own the policy.  Some of the money paid into your whole life policy accumulates “cash value” in the form of a tax-sheltered account that the policyholder can borrow against.  Returns on these investments tend to be lower and fees higher than with other savings or investment vehicles.  You pay premiums into the policy for a specified duration until it is “paid up”. 

I recommend most people get term life insurance for a very good reason.  Most people within the US population do not have complex tax needs, estates, or assets in excess of $5M.  Term life insurance — one of the most inexpensive life insurance options that only covers a certain number of years and does not contain an investment or savings component — is a better fit for most people. If your only consideration is the death benefit (leaving money for your dependents) then it does not make sense to purchase a whole life policy.

WHO REALLY BENEFITS FROM WHOLE LIFE INSURANCE?

So, who can benefit from whole life insurance and the cash value accumulated in this type of policy?

  1. Top 20% of income earners or those making $100k+ annually and have maxed out their 401(k) plans, IRA and Roth IRA options. Although folks living in San Francisco or New York City may disagree vehemently when I say 100k is a top income earner, for the sake of this argument, I have used the average salary of high-income earners across the US (Household income in the United States – Wikipedia).
  2. Those with complex estates. This is primarily for individuals with an estate worth $5.6M+ or couples with an estate worth $11.2M+.
  3. Continued care considerations for a disabled child or dependent.
  4. Liquidity held for a private business.
  5. Those individuals needing protection from litigation and creditors.
  6. Those in a high tax bracket, are risk-averse and are interested in conservative returns that are protected from market corrections.

CONCLUSION 

If you are going to purchase a whole life policy, make sure you work with an honest advisor who has experience in structuring policies to maximize cash value. Also, consult your tax preparer or CPA to ensure a whole life policy is in line with your tax strategy for the coming years.

Veteran Wealth Partners © 2018 All Rights Reserved

Insurance Products Offered through M&O Marketing and Crump Life Insurance.

The information on this site is for information purposes only and is not intended to provide tax, legal or investment advice. You should not rely on any material contained in the website and/or reports and should consult a licensed professional or seek independent advice prior to making a decision. The information does not constitute a solicitation. The information provided herein may be displayed and printed for your personal, non-commercial use only. You may not reproduce, retransmit, distribute, disseminate, sell, publish, broadcast or circulate the information to anyone, without the express written consent of Veteran Wealth Partners.

Veteran Wealth Partners, its affiliated companies, and their representatives do not give legal, tax, or Social Security advice. Producers and their clients are encouraged to consult a tax advisor, attorney, or the Social Security Administration via their local office or online at www.ssa.gov

Veteran Wealth Partners All Rights Reserved 2018

A Veteran Owned Business

Site designed by TC Creatives

Five Times You May Feel Stuck and How To Get Yourself Out of A Rut

Five Times You May Feel Stuck and How To Get Yourself Out of A Rut

This topic hits home for me on so many levels.  As business owners and entrepreneurs, we can get stuck.  Ever feel like you are just in a rut? Ever ask yourself, what am I doing?  Why is it so hard to make the kind of money I deserve? Am I not good enough?  Stop right there. Here is the thing: You are good enough. But when you’re stuck in a rut, things just don’t seem like they are going your way.  So the good news is, you are not alone in thinking these things. Everyone who has been on the journey as an entrepreneur has had at least one of these thoughts, or variations of, running through their head.  How do we get stuck? More importantly, how do we get unstuck? Keep reading about my take on it below.

What it looks like when you are stuck and how to get unstuck

There are 5 main contributors to feeling stuck that are damaging to any entrepreneur.

  1. Comparing yourself to others.  There is a reason why most leaders read books instead of watching TV.  On TV the dream of wealth is shoveled down your throat at every given opportunity.  It is exhausting, to say the least, and damaging. Keeping up with Kardashians is not real life and is not indicative of where you should be in life…Unless you are willing to make a porno with an R&B singer, I suggest you do not compare your status to others.  The first step to getting unstuck may be simple but it is far from easy: Take a look at what you have and what you are grateful for right now. Be present in what makes you happy. And then work towards what is most important to you (and not what you think should be most important to you).
  2. You have negative thoughts. I’ve been guilty of this myself.  It’s easy to get down, and think negatively about your goals, your company, and your worth.  The problem becomes critical when those thoughts become the norm. If you’re an entrepreneur, no one is going to believe in your product or service more than you are.  Potential clients can see a mile away whether someone genuinely believes in their company and the value they provide. The first step to getting unstuck is to think about something positive that you did for a client or something else that helped your business.  Then celebrate that small win. Small wins lead to bigger wins. Who you want to become is all in how you handle negative thinking.
  3. You don’t take any action.  How can you achieve anything if you don’t try?  This also is in line with lacking confidence and believing in yourself.  Inaction is guaranteed to lead you to failure. The first step to getting unstuck is to take a tiny step forward.  Call the client that you have been meaning to call. Step out on faith and promote your product or service to someone with an active following.  Do not let the possibility of someone telling you “No” to prevent you from taking action.
  4. You lack resources.  “I would be successful if….” Should not be in your vocabulary as an entrepreneur or business owner.  If you lack resources. What’s the game plan to acquire what you need? The first step to getting unstuck is looking for organizations or potential partnerships whose knowledge you can leverage to reach your goals.
  5. Ignoring problems.  I understand being in financial services that personal and business finances can be intimidating.  But to ignore problems that can impact your business is a recipe for disaster. How can you proactively improve yourself and your business if there are gaping holes in your strategy?  The first step to getting unstuck is to identify any and all issues. If the issues are beyond your ability to correct, then work with someone who can help you fix the problems within your organization ASAP.  You cannot get to the finish line if you don’t know where to start.

Conclusion

9 times out of 10 we feel stuck because of something that is internal.  Something inside of us, like excuses or the fear of change, can cause us to block our own success.  The best thing to get unstuck no matter what the situation is, is to take some form of action. No matter how small the action is, the tiniest steps can eventually lead us to success.

If you are in a rut with your business finances, we’d love to help. Book a free consultation with one of our experts.

Veteran Wealth Partners © 2018 All Rights Reserved

Insurance Products Offered through M&O Marketing and Crump Life Insurance.

The information on this site is for information purposes only and is not intended to provide tax, legal or investment advice. You should not rely on any material contained in the website and/or reports and should consult a licensed professional or seek independent advice prior to making a decision. The information does not constitute a solicitation. The information provided herein may be displayed and printed for your personal, non-commercial use only. You may not reproduce, retransmit, distribute, disseminate, sell, publish, broadcast or circulate the information to anyone, without the express written consent of Veteran Wealth Partners.

Veteran Wealth Partners, its affiliated companies, and their representatives do not give legal, tax, or Social Security advice. Producers and their clients are encouraged to consult a tax advisor, attorney, or the Social Security Administration via their local office or online at www.ssa.gov

Veteran Wealth Partners All Rights Reserved 2018

A Veteran Owned Business

Site designed by TC Creatives