Glossary

1035 Exchange

A method of exchanging insurance-related assets without triggering a taxable event. Cash-value life insurance policies and annuity contracts are two products that may qualify for a 1035 exchange.

401(k) Plan

A qualified retirement plan available to eligible employees of companies. 401(k) plans allow eligible employees to defer taxation on a specific percentage of their income that is to be put toward retirement savings; taxes on this deferred income and on any earnings the account generates are deferred until the funds are withdrawn—normally in retirement. Employers may match part or all of an employee’s contributions. Employees may be responsible for investment selections and enjoy the direct tax savings.

401(k) Loan

A loan taken from the assets within a 401(k) account. 401(k) loans charge interest and are normally paid back through payroll deductions. If the borrower leaves an employer before a 401(k) loan has been repaid, the full amount of the loan is generally due. If the borrower fails to repay the loan, it is considered a distribution, and ordinary income taxes may be due, along with any applicable tax penalties.

403(b) Plan

A 403(b) plan is similar to a 401(k). A 403(b) is a qualified retirement plan available to employees of non-profit and government organizations.

A person who gives specific guidance, suggestions and advice for investment in a variety of insurance schemes is a financial insurance advisor or insurance consultant.

There is a specific fee or charge on the customer/ investor for the services offered by the financial advisor who is required to have a license for the practice of the equivalent or the concerned aptitude in this field. He is also known as insurance consultant.

An insurance advisor carries outs a number of functions such as sales and other services for a variety of transactions, execution management, consultive or advisory role, etc.

Insurance advisors exploit their knowledge of insurance policies and companies to estimate, recommend, and sell plans to customers or businesses based on their requirements. Financial Insurance advisors mainly work full time in an office-based environment, though there is possibility to work remotely depending on the company.

Working in an insurance company, financial insurance advisors use finance principles and facts of life insurance to recommend and advertise life insurance policies to clients. These Insurance advisors require outstanding analytical and interpersonal talents to work with customers and meet their long term insurance requirements.

Addressing the possibilities of an uncertain future can be daunting for most people. However, the unthinkable can happen and protecting yourself and your loved ones at life’s critical crossroads is vital. A single, tragic incident can permanently derail your best intentions. Life, disability and long term care insurance need to be considered when structuring your financial future.

Do financial advisors invest your money?

Financial advisors helped you in your money investment, either by recommending precise investments or given that complete investment management plan. Robo-advisor is a low cost, computerized portfolio management service that is usually best for those who wish for help managing their investments.

Disability Insurance

The chances of you becoming disabled are higher than you think they are.
You can avoid the discussion, but it’s hard to pay no attention to the facts:

  • It is estimated that 1 in 4 of today’s twenty year olds will become disabled sooner than they retire.
  • Accidents are NOT usually the cause of a disability. Back injuries, cancer, heart disease and other illnesses are the leading causes of long-term absences.

If you become disabled, will you be ready? Or will you and your loved ones face severe financial hardship, probably foreclosure and may be bankruptcy?

Life Insurance

While having a financial roadmap for the expected life occurrences such as marriage, home ownership, children, college and retirement are all important, what happens when things don’t occur in the order you planned them to? A sound financial plan should incorporate life insurance to assist with the roadblocks life throws your way.

Are your loved ones safe and provided for if you die? Will the loss of your financial support further devastate their lives? Government or employer sponsored benefits will be reduced upon your death. Can your surviving beneficiaries weather this storm?

Will your loved ones be able to afford the costs associated with your final expenses? Funeral and burial costs, probate and estate administration costs, not to mention medical expenses not covered by health insurance can derail your family’s future.

Would your sudden death leave no inheritance for your heirs? Will federal and state “death” taxes financially devastate your family and force them to liquidate beloved assets in order to satisfy the debt?

Purchasing the correct type of life insurance from financial insurance advisor enhances your financial plan and the security of your loved ones in dealing with the unexpected. Financial advisor Birmingham Al consider all of the possibilities and suggest options best suited to your current situation. They also address the need to continual review of your circumstances to adjust coverage as your situation changes.

Long Term Care

Almost two out of every three Americans will require support with activities of daily living, such as bathing, walking, dressing, and toileting, at some point in their lives whether due to poor health or disability. Furthermore 3 out of every 4 people who live past age 65 will need some sort of long-term care support.  Long term care is a multiplicity of services and supports to meet health or personal care requires over an unlimited period of time.

Will You Be Able to Afford Nursing Home Care?

No one wish to think about the chance of needing long term care. But in your lifetime, if you and/or your spouse do require support, will you have the funds accessible to pay for care? How much will an extended stay in a nursing facility or home care cost? Will you be able to meet these costs and still pay for you and/or your spouse’s personal living expenses? Will there be enough surpluses to give an inheritance for your loved ones or your favorite charity? Does it create a sense to self-insure when private long term care coverage may be accessible?

Life insurance for individual /family

  • Final expenditure/ Debt reimbursement/ Income substitution/ Mortgage fortification
  • Child nurture/ Education
  • Additional Retirement Planning
  • College Planning
  • Assets Planning
  • Wealth Relocate/ Legacy Planning
  • Generous Strategies

Disability Income Insurance for Individuals/Families

  • Income substitution/ Mortgage Fortification
  • Particular Risks (Entertainers, Professional Athletes, Pilots, Draft Protection)
  • Lofty Limit DI/ Top-Hat Plans
  • Stock Option/ Retirement Conclusion Plan / Pension Conclusion Plans
  • Impaired Risks

Long Term Insurance for Individuals

  • Traditional Long term care insurance
  • Life insurance/Long term care combination insurance
  • Allowance/Long term care combination insurance

Life Insurance for Businesses

  • Buy- Sell/ Cross Purchase Agreements
  • Key person coverage
  • Loan indemnification
  • Executive benefits
  • Cash value accumulation for future business needs
  • Non-Profit/Endowment gifting & funding strategies

Disability income insurance for businesses

  • Buy- Sell/ Cross Purchase Agreements
  • Key person coverage
  • Loan indemnification
  • Executive benefits
  • Multi-Life discount/Guaranteed simplified issued DI
  • Business overhead expense coverage
  • Retirement completion