Guaranteed Safer Financial Tools 

During tougher economic times and frequent market fluctuations, it is important that your portfolio attempts to provide some safety while still capturing growth for yourself, your family and your future beneficiaries.

Here are four safer financial tools to consider shifting some of your assets to:

Annuities

  • Grow funds tax-deferred with downside protection of principal and future retirement income from potential market downturns
  • Create a guaranteed retirement income stream that will last as long as one lives
  • 3 types: Fixed, Fixed Indexed and Variable

Guaranteed Universal Life Insurance (GUL)

  • “Permanent Term” Life Insurance that lasts forever
  • Guaranteed death benefit for beneficiaries income tax-free, assuming timely premium payments
  • Chronic Illness Riders for future long-term care needs
  • Nice way to transfer additional wealth upon your demise

Guaranteed Whole Life Insurance

  • Permanent Life Insurance that lasts forever
  • Guaranteed death benefit for beneficiaries income tax-free, assuming timely premium payments
  • Guaranteed increasing tax-deferred cash values plus opportunities to earn additional funds through carrier dividends
  • Guaranteed rate of return, not tied to stock market performance
  • Can be setup to provide a tax-free annuity stream of income for life
  • Loan capabilities
  • Generally setup to provide an increasing death benefit
  • Chronic Illness Riders for future long-term care needs

Life Settlements

  • Sale of a permanent life insurance or convertible term to a carrier or third party
  • Typically, owner is offered a significant lump sum payment above the current cash value
  • Reasons to consider a Life Settlement
    • Policy is going to lapse or be surrendered
    • Standard Term policy conversion privilege about to end
    • Policy no longer affordable due to poor performance
    • Beneficiary is no longer living or does not require the necessary coverage
    • Decrease in estate tax liability
    • Retirement needs to supplement Social Security or other pension income
    • If policy does not have a Chronic Illness Rider, then proceeds can be used for long-term care needs
  • Minimum requirements
    • Age 70 (exceptions down to age 65)
    • Policy death benefit $250K
    • Less than perfect health
    • Policy at least 2 years old
    • Cash surrender value <30% of death benefit

If you would like more information or assistance please contact me directly.


Logan W. Simios
Principal, Benefits & Financial Division
847-818-7540
lsimios@jkrug.com