life insurance
Written by David, September 13th, 2012
If you’re like most people, you probably own a variety of insurance products that haven’t been looked at for some time. September is life insurance awareness month, and we want to encourage you to review your life insurance, annuity, long-term care plan and other estate plans.
Remember that these policies can have dramatic changes built into them from year to year, so that makes it extremely important to understand how these changes could impact your coverage. Because there are so many varied aspects to life insurance and annuities, you simply must have an experienced professional on your side to make sense of it all.
We recently met with a client that had a permanent insurance policy with a poorly rated carrier. The client is over 70-years-old, and they had two primary concerns:
1) The insurance company had doubled the client’s premiums, and future projections indicated that the accumulated cash value would only sustain the contract for the next five years.
2) The financial strength of the carrier was so dire that if anything did happen to him, the insurance carrier may not have had the resources to payout the death benefit.
Our solution was to move the client into a new paid-up, permanent insurance policy with an “A” rated carrier that is guaranteed to pay the death benefit to his family. The client was able to use the cash value in his existing policy to fully fund the new contract with no out-of-pocket costs.
This is a perfect example of how important it is to review all of your insurance policies on a regular basis to ensure that they are capable of performing as expected. A solid insurance or annuity plan is a critically important financial planning tool, but it must be managed properly to make sure you protect your wealth and pass it on to the ones you choose. Just like a well-built home, your insurance policy must be constructed correctly in order to meet your long-term needs.
We encourage you to call our offices at (800) 391-1118, ext. 283, and speak with our in-house insurance expert, Todd Clucas. Todd will help you review your existing life insurance or annuity policies, and he will provide a comprehensive analysis of your situation at no charge to you.
Make the call today, and find out how you can better protect yourself and your family.
Best Regards,
Doug Fabian
President, Fabian Wealth Strategies
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NOTE: The information expressed in this post is for educational purposes only and should not be construed as a recommendation to buy, sell, or hold any specific insurance product. Fabian Wealth Strategies, Inc. is licensed by the California Department of Insurance (License #0G87212).
Written by Dani, May 08th, 2012
If you want to grow your investments, get a well-rounded view of the markets and understand these uncertain times, you want to sign up for our teleseminar today. You can sign up HERE.
Also, please check out the other resources available for our readers:
New ETF report
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Portfolio reviews available
Life insurance and annuity reviews also available
Written by Dani, April 24th, 2012
French elections and Apple computer are the two big issues in the markets this week. Here’s why:
- APPL has gone into a correction this week and last week, losing about 5%.
- On Sunday, the French held their presidential elections. Sarkozy and Hollande are the two run-off candidates, and this matters to the markets because each candidate has such a different approach to how to fix Europe’s debt crisis.
We need to be paying attention to the elections in France and the condition of the European debt crisis because it will undoubtedly have effects on our economy and markets. This article from The Week gives a good soundbite for why we are bringing this up:
“What has Hollande promised to do as president?
He has pledged to increasegovernment spending to spur economic growth. That position is the polar opposite of the policy Sarkozy and German Chancellor Angela Merkel have adopted, encouraging EU countries to cut spending to get their finances in line. The duo, who have worked together so closely that they’re referred to jointly as “Merkozy,” have shaped the EU’s response to the debt crisis, which shows no signs of abating.
Would Hollande’s proposals hurt or help Europe?
It depends whom you ask. Some economists say it ‘is likely to make matters worse, possibly sending financial markets into a tailspin that invites further chaos,’ says Steven Erlanger at The New York Times. Others say boosting economic growth is the key to getting Europe out of its funk. ‘An Hollande victory would shake things up, and offer at least a possibility of something better,’ says Paul Krugman at The New York Times. Plus, some European countries may be starting to turn against Merkozy’s prescriptions: The Dutch government will likely collapse over resistance to new austerity measures, and Spain and Italy are also siding with more pro-growth policies.”
We are keeping an eye on the news from Europe, and it will be interesting to see if France continues to embrace austerity, or if they spend more in an effort to get out of their current debt crisis.
Speaking of paying attention, we asked our readers and listeners last week if you have the right life insurance policy or annuity. This is an important item to keep in mind, and we encourage you to learn what you need and why. Today, I am offering you a FREE insurance and annuity consultation. If you would like to have one of our experienced professionals research and analyze your life insurance policy or annuity contract, then simply call our offices at (800) 391-1118, and we’ll set you up for your FREE life insurance and annuity review.
Thanks for reading our podcast summary. If you want more details on what is discussed on the blog, please listen to the full podcast here.
Doug Fabian’s next live public speaking event will be in Las Vegas at the Money Show, where we’ll have about six different opportunities to present, and a special opportunity for our subscribers. Please check out moneyshow.com to register or for more information.
Written by David, April 17th, 2012
If you’re like most people, you probably own a variety of insurance products. Life insurance is the most widely held financial services product in the country, but did you know that there are also over 20 million annuities in existence? If you own a life insurance policy or an annuity, you need to be aware that there are features and benefits to these contracts that you can use to enhance your financial situation. But beware; there also are fees and expenses associated with these products that could threaten future benefits for you and your family. Let me explain.
When it comes to life insurance, most of us own it as a way to protect our family. If we were to die unexpectedly, our spouse and or dependents would have enough money to replace lost income, pay down debt or pay for college expenses. These are the typical reasons why we buy life insurance. Most people own term life insurance, which covers you over a specified time period (usually when our dependents rely on us most). In this situation, you want to make sure you have the right amount of coverage, and that you are paying a reasonable cost for what you need.
Action Item No. 1: If you have a term life insurance policy, you need to review that policy’s coverage to make sure it serves your family’s needs. You also need to see if what you’re paying for that coverage is reasonable.
In addition to term life insurance, there’s also a type of life insurance that allows you to merge a savings account with a policy to help achieve your financial goals. For example, you can create a personal pension plan with a permanent life insurance policy. This type of policy allows you to save for retirement while also generating a future income stream from your savings. This strategy works well for high income earners who aren’t able to save enough of their income via a 401(k) or other retirement savings plans. These life insurance policies allow you to invest for retirement and family protection WITHOUT downside risk, and they come with full tax deferral and tax free withdrawal, IF they are properly structured.
Action Item No. 2: If you’re concerned that your current retirement savings vehicles may not be enough, or if you have concerns over the amount and cost of your current life insurance coverage, take steps to find out what kinds of life insurance may fit one or both of these needs.
If you have an annuity, you should be looking at your contract in terms of investment performance and costs. Annuities are valuable tools for retirement savings and income generation, but there are complicated options and contract language that are vital to understand. Annuities also carry many internal fees and expenses, and insurance companies traditionally do a poor job of explaining those costs. When it comes to investment options, you need to make sure your annuity is in sync with your overall retirement plan.
Action Item No. 3: If you own an annuity, you need to conduct a review of the investment options, fees and expenses associated with your policy, and you need to compare those with the latest product offerings from the industry.
At Fabian Wealth Strategies, we offer our clients a full service wealth management experience. We know that life insurance and annuities play a key role in our clients’ financial plans, and that’s why we have experienced team members here to help our clients make the most of these financial products. Because there are so many varied aspects to life insurance and annuities, you simply must have an experienced professional on your side to make sense of it all.
Today, I am offering you a FREE insurance and annuity consultation. If you would like to have one of our experienced professionals research and analyze your life insurance policy or annuity contract, then simply call our offices at (800) 391-1118, and we’ll set you up for your FREE life insurance and annuity review.
Make the call today, and find out how you can better protect yourself and your family.
All the best,
Doug Fabian
President, Fabian Wealth Strategies
3070 Bristol St, Suite 610
Costa Mesa, CA 92626
(800) 391-1118
NOTE: Fabian Wealth Strategies, Inc. is a registered investment advisor with the U.S. Securities and Exchange Commission. Doug Fabian is a registered investment advisor representative. The information expressed in this email is for educational purposes only and should not be construed as a recommendation to buy, sell, or hold any specific insurance product. Fabian Wealth Strategies, Inc. is licensed by the California Department of Insurance (License #0G87212).
Written by Dani, February 09th, 2012
We believe that the most successful people are on top of the issues of the day. Being well-informed and staying well-organized will help you to succeed, so for the next few weeks we will be outlining six exercises for you to stay informed and ready to make good decisions. Those six exercises are:
- Making a calculation of your net worth
- Taking inventory of financial assets
- Understanding your cash flow projections
- Examining your expenses
- Making sure you have an updated estate plan and living trust
- Taking stock of all insurance policies – health, life, long term care, annuities, etc.
Five weeks ago, we took less than an hour to calculate your net worth. Four weeks ago, we talked about taking inventory of your assets. Three weeks ago, we figured out how to understand your cash flow projections. Two weeks ago, we looked at your expenses, and last week we talked about wills, trusts and guardianship. If you missed any of these exercises, please go back and listen to those previous podcasts for more detailed information, or you can read the summaries of each exercise on our blog.
This week, we are talking about insurance: health insurance, life insurance and annuities. Insurance is an essential expense, and we encourage everyone to take a look at what you own, what you have and what you need.
There is such a thing as being “over-insured”. Sometimes life insurance can move from being an asset to becoming a liability, so getting a professional to look over your life insurance and what you need is essential. Todd Clucas is our insurance expert on staff and can help with any issues at 888-300-3684.
Annuities are a very powerful tool, but we believe that they are sometimes over-sold. Not everyone needs an annuity, but it’s important to know if you do need that option, and whether it’s worth the investment. Again, please get in touch with us if you have any questions about this or any other part of our personal finance exercise series.
Once you know what you have to can set clear, reachable goals. Tune in next week for more on Doug Fabian’s Monday Market Update. (Also, if you read this blog and enjoyed it, listen to Doug’s podcast this week for even more details on these topics, and please share this information with others who might benefit from our perspective.)
Written by David, February 08th, 2012
Insurance can take many forms, and the need for insurance is a very personal one. The most common reason to have a good life insurance policy in place is to replace lost income due to the death of a spouse, and to provide survivors with the financial stability necessary to not worry about fiscal issues.
For high-net-worth individuals, life insurance can be used to defer capital for retirement, and to help protect and grow that wealth for their dependents. As for annuities, they also can be very good financial instruments—if they fit your overall financial goals.
The final personal finance exercise I want you to conduct here is to do a complete review of all of your insurance products, including any annuities you may own. Ask yourself the following questions:
1) What policies do I have, and what’s the benefit amount in each policy?
2) Where are my policies, and am I dealing with more than two companies? If so, you may want to consolidate these.
3) Do I have sufficient insurance to take care of my dependents? Many people bought policies when they first were married. Now, you may have children, you may be making a lot more money than you used to, and you may have significant assets such as a home to protect.
4) What kind of premiums are you paying for your policies, and how much are you paying in annuity fees? The latter can be substantial, so if you are paying substantial annuity fees, it’s time to see if those fees can be reduced.
Performing an insurance and annuity review will give you a good idea of what you have, where you stand. It also allows you to address any flaws in your overall financial plan.
At Fabian Wealth Strategies, my investment advisory firm, we’ve set up a webpage to help you address some of the common questions involved when assessing your life insurance picture. I invite you to pay a visit to this page before you conduct your own insurance review.
If you’d like to hear more about this, as well as other personal finance exercises, and if you’d like my take on all of the market action, then sign up here for my weekly audio podcast.
