Annuity Pros - Blog #Wills

Protecting your legacy

Sat, 01 Feb 2025 05:49:00 -0700

Protecting your legacy

Many parents hope to leave a parting gift for their children after they’ve gone. But how can you be sure they will use their inheritance the way you intended?

Protecting children from mismanaging their inheritance is one of the top three pressing concerns of people seeking estate planning, according to a recent survey.

These simple strategies from can help address your concerns and ensure that the funds you leave behind will be used wisely.

Q: What are the primary reasons someone would want to delay or restructure an inheritance?

A: Some people are concerned that their heirs will not make good financial decisions if the inheritance is collected all at once. Others want the gratification of knowing they are contributing to a certain event in their children’s or grandchildren’s lives (for example, putting money toward a college education or milestone birthday). And in many cases, it is because they have a child or grandchild with special needs.

Q: What solutions do you typically recommend?

A: There is never a set solution. Each client's situation is different. But I would discuss establishing trusts and looping in an estate-planning attorney to make sure the assets are dispersed the way the grantor intends them to be.

Q: Suppose I want to specify exactly how my inheritance should be used or distributed, or protect it from ending up in the wrong hands. How would I do that?

A: There are a few ways. Some cases require an attorney or financial advisor. Depending on the value and complexity of the estate, a lot of times a trust will be needed. Sometimes solutions can come from the financial product alone, like an annuity. This is possible because the financial product is beneficiary friendly, meaning the client can assign how and to whom the assets will pass upon their death. The options are so detailed that even if the grantor outlives any of the beneficiaries the grantor themselves can choose how the deceased beneficiary’s share will be decided—whether it stays in the passed beneficiary’s bloodline, or gets shared among the still-living original beneficiaries.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

Estate planning 101

Sun, 01 Dec 2024 05:41:00 -0700

Estate planning 101

Having a smart estate plan is essential for everyone—regardless of assets, age, or income. Here's what you need to know to build yours.

You might think estate planning is something you can put off until your later years, or that it's just for the super wealthy, or both. But setting up a clear path for what happens to your property and your family after your passing can make life for your heirs much easier in a time of stress and grief. That's where an estate plan comes in.

"It's your chance to really take control of how your property is going to pass upon your death," says Kelley Bentley, a Houston-area attorney with Roberts Markel Weinberg Butler Hailey PC.

Here's what you need as part of a solid estate plan, no matter your assets, age, or income.

Will

This basic legal document will set up who will get what—without having the state step in and make those decisions, which is often a headache for your heirs and can cost them more money in the long run.

A will is especially important if you have minor children and are a single parent, says Bentley. If you don't do any planning for your children, they have to go into a guardianship, which can be traumatic, while the legal system sorts out who your children will be living with in the future. Plus, a judge may decide on a guardian you'd never have chosen yourself. By having a will in place that states who your children's guardians will be in case something happens to you, you can ensure that they will be raised by whomever you see fit.

Trust

A trust can do a couple of important things. First, it means your estate will not go through probate, a process that can delay assets being passed on to your heirs. This is especially helpful if you hold properties in more than one state, says Bentley, as your estate would be subject to separate probates in each state.

A trust can also be set up for special needs or minor children. It will determine how the assets they inherit will be used to support them, who will make those decisions, and when the children can take over that fund themselves, if ever.

Powers of Attorney

If something happens to you and you can't make decisions for yourself, who will be in charge? Who will make sure that your bills are paid and that medical decisions are made with your best interests and wishes in mind? Bentley says that your estate should determine who holds your medical and financial powers of attorney. Keep in mind that those roles may be held by two different people.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

What is estate planning and why is it important

Wed, 01 Nov 2023 05:00:00 -0700

What is estate planning and why is it important

It might seem like estate plans are just for people with actual “estates,” but most people should have one.

That’s because, in financial and legal terms, an estate simply consists of your possessions. This can include your home or other real estate, but also your car, investments, life insurance, furniture or other personal possessions, and even your checking and savings accounts.

What is estate planning?

Think of estate planning as a road map for making sure your wishes are carried out when you pass away or are unable to make decisions for yourself.

It’s an umbrella term used to describe multiple different documents that help outline your health care wishes, how you’d like your assets and possessions to be distributed and can even name who you’d like to care for your children, dependents and pets.

What’s the purpose of making an estate plan?

The reason an estate plan is so important is that without it, your assets can wind up in legal limbo for years. This can put an unnecessary burden on your heirs and other family members who are left to deal with sorting out your finances. Besides making sure your assets get to the people you choose, planning can help minimize income, gift and estate taxes, too.

Without an estate plan, and specifically a will, the laws in your state will determine what happens to your possessions, and the courts will decide who gets custody of your children.

What documents are needed for estate planning?

Every estate plan is different, but the following is a list of some commonly included estate planning documents

Last will and testament

This legal document allows you to outline how you want your possessions to be distributed and who you’d like to care for your children, dependents and pets.

Living will

This is different from a last will and testament and is used to define your wishes for end-of-life treatment if you‘re terminally ill. For example, you could define if and when you’d like to be removed from life support.

Trust

While there are many different categories of trust, they all center around a relationship in which one party (the trustor) gives another party (the trustee) the right to hold the title of property or assets for the benefit of a third party (the beneficiary).1

Medical Power of Attorney (POA), aka health care proxy

This allows you to choose someone who can make important decisions about your medical care on your behalf.

Financial POA

It gives someone the ability to make financial decisions and to carry them out on your behalf.

Life insurance

Life insurance can be added to an estate plan to help your loved ones replace lost income, pay the mortgage or rent, or even to cover funeral or other end of life expenses in your absence. It can also be used to leave a legacy.

Beneficiary forms

Many assets, such as life insurance, IRAs and 401(k) plans allow you to name a beneficiary and a contingent beneficiary. This helps avoid probate and allows the asset to be paid directly to your loved one. So it’s important to keep these designations up to date.

How much does estate planning cost?

Estate planning costs will vary based on the complexity of your estate. If you have more straightforward planning needs, there are online providers, such as FreeWill, that can help you get the information and documents you need completed for free.

People with more complex planning needs may want to hire a financial and/or legal professional to help guide them through the process. The cost for these services can vary, too. Some offer flat estate planning rates, while others charge an hourly fee.

While creating an estate plan can seem overwhelming, it doesn’t have to be. Having a last will and testament is an important part of every estate plan, making it a great first step in getting your plan in place.

1“Trust,” Investopedia (Oct. 19, 2020).

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

What is variable universal life insurance?

Fri, 01 Sep 2023 05:00:02 -0700

What is variable universal life insurance?

Variable universal life insurance is a type of permanent protection that offers flexibility and the potential for growth by investing some or all of your cash value in subaccounts that are tied to the stock market — similar to how mutual funds are structured.

What does it offer?

In addition to lifetime protection, variable universal life insurance offers a unique combination of benefits to help meet your needs, including:

Enhanced growth potential

A variety of high-quality investment options mean the potential to earn a higher-than-average rate on your cash value accumulation.

Supplemental retirement income

If you’re already making the maximum allowable contributions to your qualified retirement funds, a variable universal life policy offers you the potential to build additional savings for retirement.

Tax advantages

All life insurance products offer tax advantages, including a tax-free death benefit and tax-deferred cash value growth to help you make the most of your investment.

Policy customization

You can customize a variable universal life policy with a variety of optional features for an additional charge, including the Long-term Care Rider.

How does variable universal life insurance work?

A portion of your flexible premium payment goes toward the insurance, which includes any fees and death benefit coverage.

The remaining premium goes into a tax-deferred savings account, with the opportunity to invest that cash value into subaccounts.

Who may benefit from variable universal life insurance?

Variable universal life insurance is designed for people who:

Are looking for a permanent life insurance policy that has the potential to accumulate cash value
Want more variety and control over their investment options
Prefer the freedom to monitor and make decisions on where to allocate their funds over time
Understands that investing involves rewards, but also risks that may have the potential to reduce the policy’s cash value.

Could variable universal life insurance be right for you?

See how it compares to other types of life insurance (e.g., variable universal life vs. whole life) to get a better idea of whether it meets your needs.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

Whole life insurance in depth

Tue, 01 Aug 2023 05:00:02 -0700

Whole life insurance in depth

What is whole life insurance?

Unlike term life insurance that protects you for only a specific duration, whole life insurance offers protection throughout your lifetime.

It’s the most basic type of permanent life insurance that offers consistency along with some predetermined, guaranteed cash value growth.

What can it offer?

In addition to lifetime protection, whole life insurance offers a unique combination of benefits to help meet your needs, including:

Consistent premium payments

Whole life insurance is typically more expensive than term life policies, but the premium amount is fixed for the life of the policy.

Consistent cash value growth

Your whole life insurance policy receives guaranteed cash value growth.

Tax-free death benefit

The payout your beneficiary receives if you die is typically tax-free and has a steady value throughout the life of the policy.

Policy customization

You can customize a whole life insurance policy with a variety of optional features for an additional charge.

Your premium payments remain the same over the life of the policy, and a portion of it goes toward the insurance, which includes any fees and death benefit coverage.

A small amount from each payment is also set aside to build up your predetermined, guaranteed cash value.

With this policy, you can borrow against the cash value if needed. When you pass away, an income-tax free death benefit is paid to your beneficiaries. Keep in mind that borrowing against the cash value will reduce the death benefit paid to your beneficiaries, though.

Who may benefit from whole life insurance?

Whole life insurance is designed for people who are looking for:

A policy that lasts your whole life
Premiums that stay consistent over time
A guaranteed, tax-deferred cash value with a fixed rate of interest over time

Could whole life insurance be right for you?

See how it compares to other types of life insurance (e.g., whole life vs. term life) to get a better idea of whether it meets your needs.

How to buy whole life insurance

You need to work with an insurance professional at Annuity Pros to buy this type of product.We are here to help.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

Universal life insurance in depth

Sat, 01 Jul 2023 05:00:00 -0700

Universal life insurance in depth

In addition to lifetime protection, universal life insurance offers a unique combination of benefits to help meet your needs, including:

Plan flexibility

You can change the protection level, how frequently you pay your premium or even the premium amount, as long as you remain within set boundaries.

Access to the cash value

If your needs change, you have the potential to build and borrow from the cash value while you’re alive.

Long-term care coverage

You have options for covering potential long-term care expenses — for help with things such as bathing, dressing, eating, food preparation and household cleaning.

Tax advantages

All life insurance products offer tax advantages, including a tax-free death benefit and tax-deferred cash value growth.

How does universal life insurance work?

A portion of your premium payment goes toward the insurance, which includes any fees and death benefit coverage.

The remainder of your premium payment adds to the policy’s cash value, which you can withdraw or borrow against.

There are several types of universal life insurance products, and the cash value growth rate in your policy — either a fixed rate set by your insurance company or a rate based on the performance of market indexes — will depend on the product you select. With a universal life insurance policy, you have the ability to withdraw or borrow against your cash value. If you pass away, the income tax-free death benefit will be paid to your beneficiaries.

Who may benefit from universal life insurance?

Universal life insurance is designed for people who are looking for:

Protection for your family in case of your premature death
Potential cash-value growth with tax advantages to use for things such as supplemental retirement income
Built-in flexibility, in case something happens and you need to adjust your premium or death benefit value
Options for covering long-term care expenses
A way to transfer wealth to future generations in a tax-efficient manner

Could universal life insurance be right for you?

See how it compares to other types of life insurance (e.g., universal life vs. whole life) to get a better idea of whether it meets your needs.

Indexed universal life

Cost-efficient death benefit protection with the potential for cash value accumulation that you can use to help meet a variety of planning needs.

Can offer permanent life insurance that’s designed to help protect your family today and enhance your cash value growth potential for the future

May provide cost-efficient death benefit to help assure a good value for your money, along with potential of cash value growth so you can plan for the future with confidence

Guaranteed universal life

Affordable, guaranteed protection that can be customized to meet your needs today, while still being flexible enough to evolve as your needs change.

Survivorship universal life

Permanent life insurance on two people that helps protect your family by paying a death benefit when the second insured passes away.

Linked-benefit universal life

A universal life insurance policy and long-term care coverage in one hybrid policy.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

Term life insurance in depth

Thu, 01 Jun 2023 05:00:00 -0700

Term life insurance in depth

What is term life insurance?

Term life insurance is typically the most affordable option to protect your family in the event that something happens to you. It’s a policy that covers you for a specific amount of time, or term — typically 10, 15, 20 or 30 years. You make premium payments during the term you’ve selected, and your insurer will pay a death benefit to your beneficiaries if you pass away.

Why term life insurance?

Term life insurance tends to be a more affordable policy than permanent life insurance because it doesn’t build any cash value that you can borrow against or invest and it ends at the term of your contract instead of providing lifetime coverage.

Select the duration of your coverage

Decide the number of years your financial needs will be greatest (for example, when your kids are younger or while you’re paying a mortgage).

Determine how much you need

Think about how much your loved ones may need to replace your income. This could also include the amount needed to pay off a mortgage, save for college tuition, or cover debts or final expenses.

With a term life insurance policy, you pay fixed premiums for the term you’ve selected to be covered. Your monthly payments will stay the same throughout your premium period. If something were to happen to you, whoever you choose as your beneficiary will receive the tax-free death benefit.

Who may need term life insurance?

Term life insurance may be a good option if you have people (or even pets) who depend on you financially. You may want to purchase a policy that will correspond with how long they’ll be dependent on you — for example, if your children are young or in college. The tax-free payout can help provide financial stability for your family. They can use this money to replace lost income, maintain a certain lifestyle and pay off any outstanding debts such as a mortgage.

And keep in mind that wage-earners aren’t the only people who may need coverage. Stay-at-home parents provide child care that would need to be replaced if something happened to them. So, as you’re considering your needs, it’s important to take these expenses into consideration, too.

How much does term life insurance cost?

The monthly cost for term life insurance will vary based on your specific situation. For example, the younger you are, typically the lower your premium will be as you are less likely to pass away before your term ends. Women also tend to pay less because on average they live longer than men. How healthy you are is also a factor in your cost.

Advantages of term life

It can provide financial protection for your family.

It’s typically less expensive than other life insurance options.

The younger you are when you purchase life insurance, the less expensive it typically is.

Disadvantages of term life

It covers you for only a specific amount of time, not for your entire life.

Once the term ends, the coverage ends or the premiums increase dramatically.

The older you are when you purchase coverage, the more expensive it gets.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now

What is life insurance?

Mon, 08 May 2023 08:14:36 -0700

What is life insurance?

Life insurance policies help provide security to either you or your beneficiaries after you pass away or after a designated period of time. With a life insurance policy from Nationwide, you can help secure your family’s financial future by paying for college, paying off a mortgage, covering any final expenses or estate taxes, and more.

Types of life insurance

There are two main types of life insurance:

Term life insurance and permanent life insurance. Term life insurance simply covers you for a specified amount of time (10-, 20- and 30-year policies being the most common).

Permanent life insurance can be broken down into three types: universal, whole and variable. You can use this tool to get a better understanding of which type of life insurance is right for you.

Common life insurance questions

Who needs life insurance?

Generally speaking, if you have dependents or are married, your family can benefit from you having a life insurance policy. Life insurance offers peace of mind by ensuring that your loved ones will be taken care of in the event of your untimely death. Plus, payouts are tax-free.

Why should I get coverage now?

Rates tend to go up as you age. Buying a policy when you’re younger lets you lock in a lower rate.

How much life insurance do I need?

This depends on what you want to leave when you’re gone. There are two common methods for calculating the amount of life insurance you need: lump sum and income replacement. You can use Annuity Pros enquiry form below to get an understanding of how much life insurance you may need.

How much does life insurance cost?

The cost of your life insurance policy is dependent on a variety of different factors, ranging from your age, gender, location, and health. You can use a term life insurance tool to get an idea of what life insurance may cost you.

What is term life insurance?

“Term” refers the length of coverage that you choose. If you pass away during the term (usually 10, 20 or 30 years), your beneficiaries receive a cash payout.

Why is term life a good option?

With term life insurance, you’re only paying for the years where the need is greatest (when your kids are younger or in college), and it is usually the most affordable type of insurance.

Is my policy through work enough?

Life insurance through your employer is not portable, so it won’t come with you if you leave the job. Also, the amount is often not enough to meet people’s protection needs.

What is permanent life insurance?

Permanent life insurance falls under three types of policies: whole, universal, or variable. These policies cover your entire life and usually build cash value over time, but tend to be more expensive than term life insurance.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now