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Fax: (713) 684-1600

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STORM SEASON
Important Note:

June through November our agency may become prohibited from binding coverage should a “Tropical Disturbance” enter the Gulf of Mexico or Caribbean Sea.

In these cases we may be unable to bind new coverage quoted in open proposals until the storm leaves our area and our binding authority has been restored.

Please arrange your coverage protection early to avoid this type of delay. While we regret any inconvenience, the carriers impose these restrictions on all agencies.

Investing Via Life Insurance?

Life insurance policies exist to provide a layer of financial security for the beneficiaries left behind. Policies are generally built around paying a minimal installment for the greatest payout. The payouts enable beneficiaries to navigate financial hardships following the passing of loved one, friend, or colleague. Life insurance policies can provide the immediate funds to overcome these challenges. Some of the burdens beneficiaries may face are:

  • Equalize an Estate. Policy payouts can equalize the balance of an estate. In cases where a family business exists but not all family members take part, policies can help balance estate value. If the deceased donated considerable sums to charitable organizations, policies can help compensate estate accounts.
  • Pay Estate Taxes. Estate taxes can cripple those without access to liquid funds. A life insurance policy can provide immediate funds for payment of the estate tax.
  • Facilitating Business Succession. Business partners listed on a policy may use life insurance payouts to buy company shares or stock from the estate of a deceased partner.
  • Replacing Essential Staff. Life insurance plans can help businesses cover expenses associated with the loss of a key employee.

Term and Permanent Life Insurance: A Breakdown

You can select between two life basic insurance policy options: term and permanent life insurance. Your own objectives will help determine which is the best policy for you.

Term Life Insurance

* With term life insurance, contributors pay a fixed amount into the policy for a set period of time. Payments made into a term life policy count as expenses that may or may not return any value. If the policy is not used within that time it will become void.

Permanent Life Insurance

Permanent life insurance policies offer up to lifetime coverage, depending on the policy. Permanent life insurance policies have a major benefit over term life policies. The payments made on a permanent life insurance policy create a cash value for your policy. This turns a life insurance policy into a vehicle for investment. With the right language on your policy, the cash value of the policy will be subject to the same taxation as a 401k or Roth IRA plan.

Permanent Insurance: Advantages over 401k/Roth IRA

Permanent life insurance plans offer considerable advantages for investing over Roth IRA plans. Both use after-tax dollars to grow, but permanent life insurance policies place no limit on the amount (so long as other policy requirements are met). Permanent life insurance plans do not place restrictions based on income. Perhaps of most value to those retiring younger – permanent insurance plans will not penalize for withdrawals made before age 59 1/2.

Candidates for investing using permanent insurance plans include all walks of life. Permanent life insurance plans offer tax-smart places for investing income. These policies offer a place to invest for those unsure about the stock market. They can be an alternative for costly bonds. If you’re interested to see how you can create value and invest using life insurance, contact your advisor today.

The current world has many insurance related issues and topics that affect our finances and health. Such issues play a pivotal role in our lives. If you have any information regarding such topics, please feel free to share with us. We are happy to help you tackle any life insurance questions or any insurance-related questions you may have.