Absolute Retirement Solutions

life insurance policy

What Type of Life Insurance Policy Is Right For You?

We insure many of the most important things in our lives; our cars, our homes, our health care, and
more. Insuring your life (and the income that you provide to your family) only makes sense.
However, this is a type of insurance that some people don’t like to think about.

Regardless of your age and income, life insurance is often an essential part of any family’s long-term
financial plan. If you have people who depend on your income, it can help replace that financial
support when you die. There are a variety of options when it comes to life insurance policies.
With so many options available, it can be confusing to choose which policy is right for you.

There are two main types of life insurance; term and permanent, also referred to as cash value insurance. There are more variations of
permanent policies, including whole life, universal, and indexed universal policies. Each has
different features that are intended to accomplish different goals. Your most suited choice
depends on what you want to get out of your life insurance policy.
Term life insurance is generally appropriate for people who:
● Need coverage only for a certain period of time. You can purchase a policy that lasts for
a term such as 10, 15, or 20 years.
● Want affordable coverage that pays a death benefit if you die during the term.

Term life insurance meets the needs of most buyers. While these policies are most affordable
to buy at a younger age, it is important to note that coverage ends without any kind of payout
when the term expires. That means you can either continue without coverage or renew, but your
premiums would be higher based on your current age and health status or you may be able to convert your term policy into a permanent policy.
Permanent life insurance tends to be well-suited for people who:
● want coverage that lasts for their entire life, whether they die next week or live past 100.
● want to also accumulate tax-deferred funds within the life insurance policy

Permanent life insurance is often a good choice for people who want a savings feature
combined with their life insurance policy. The cash value accumulated in a permanent life
insurance policy may be borrowed against or withdrawn depending on the policy. This could be
used for any purchase, like funding your child’s education. Variations between different types
of permanent life insurance involve the way the cash value grows and how you are able to
access it. There are other tax-deferred vehicles that may be more effective than
permanent life insurance depending on your personal goals.
Choose a policy that makes sense for you
The best way to find out what type of life insurance is right for you is to contact the
knowledgeable insurance professionals at Absolute Retirement Solutions. As an independent agency, we
can provide you with a wide selection of policies and guide you through your options to
find affordable coverage that makes sense for your situation. Contact us today to get in touch
with one of our agents and start planning for your family’s future.
Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. They involve limitations, fees and charges including surrender penalties for early withdrawals. Medical underwriting may be required to qualify for coverage. Product and feature availability may vary by state.

Policy loans and withdrawals will reduce the policy’s cash values and death benefit, and could cause the policy to lapse. Additional premiums may be needed to keep the policy in-force

nnuities are retirement saving products issued by insurance companies. They are designed to
provide retirees with a guaranteed stream of income that they can’t outlive. Annuities provide
protection against market volatility and the potential for conservative, tax-deferred growth. With many
retirees citing their number one concern as outliving their money, it’s no wonder that annuities
have become popular. However, there are many types of annuities and there is often
confusion about what they really do. Fixed-indexed annuities (FIAs) are a commonly talked about variation. We’re here to set the record straight about fixed-indexed annuities and
help you decide if they have a place in your retirement plan.

What is a fixed-indexed annuity?

Traditional fixed annuities offer a fixed interest rate and guarantee the payment amount. Variable annuities offer returns based on the performance of the chosen investments, and you can lose money in a down market. Fixed-indexed annuities are fixed insurance products, but they work a little differently. A fixed-indexed annuity is a long term retirement income product which provides principal protection and the opportunity to grow over time.

The basics:
● FIAs grow tax-deferred – you pay taxes only when you take withdrawals
● They offer principal protection
● They offer a guaranteed, steady income for life, no matter how long you live
● They earn interest tied to the movement of an external index, such as the S&P 500, yet are never actually invested in the market
● Some fixed-indexed annuities offer a minimum guaranteed interest rate
● FIAs interest is capped, in the form of caps, spreads, or participation rates

Should you purchase a fixed-indexed annuity?

When you have a fixed-indexed annuity and the market does poorly, you are guaranteed not to lose money. When the market index you selected increases, you can earn interest each year. So, are fixed-indexed
annuities protected? While you may not get the returns you hope for, you will not lose what you put
in due to market loss. Are they a good idea for everyone? No. Whether or not an FIA fits into your retirement plan
depends on a variety of factors regarding your financial situation as well as your personal goals.
It’s also important to note that fixed-indexed annuity contracts vary quite a bit in their terms; you
need to understand the details of a policy before you buy-in. When used correctly, the right FIAs
can diversify your portfolio to help protect you from market volatility and longevity risk. If those sound
like your goals, you should consider your options with a qualified agent.
At Absolute Retirement Solutions, you can partner with a knowledgable financial professional to
create a personalized income strategy for your future. We provide a variety of annuity products,
including fixed-indexed annuities, to help meet the unique needs of our clients. We can help you
decide if an annuity is right for you. Call (913) 254-3030 or fill out our online contact form to start
planning for retirement today.

“Annuities involve fees and charges, including possible surrender penalties for excess withdrawals. Annuity withdrawals are subject to ordinary income taxes and if taken before age 59-1/2, may incur an additional 10% federal penalty. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing company”