Have You Recently Become an Entrepreneur? Why You Need to Closely Look at Life Insurance

The events of the pandemic over the past 2 years have played a huge role in the choices that many people have made in their personal and professional lives. Having the freedom to take time off when you want, perhaps work on a platform that allows you to be creative when describing your product and paves the way for more income than you could make at an hourly rate for someone else are all reasons to become your own boss. If you are a small business owner or a “solo act” of sorts marketing a service or product, you may have recently realized that it could be time to start thinking of a few others besides yourself!

Here at the Alexander insurance agency of Saint Charles, are experts on trends and other events that may affect your various needs as a business owner. There are some other very eye-opening reasons to have life insurance if you’re a small business owner that doesn’t involve just protecting your family and can help you greatly if something unexpected falls into your lap. Your continuing adoration and long-term care for your family is a predominant reason to consider life insurance, but here are a few more that will aid you in making a final decision.  

For When Smooth Sailing Suddenly Becomes Stormy:

As you’re at the home for anything such as a grocery store, supply portal, or branch of the trucking industry, you definitely become used to taking precautions for events that seem to arise out of nowhere. If you encounter a sudden illness your productivity can decline rapidly, and you may not have enough funding to assure smooth operations while you need crucial time to rest and heal. Any form of financial aid that you can have at your disposal could be crucial for you during this time and could be the difference between temporarily or permanently shutting the doors. There can be very convenient clauses and features of life insurance policies that provide a great help for more than just the beneficiaries listed.

Protecting a Long-Lasting Name Brand or Legacy:

You put in the time and effort to make your business successful, so it is essential to ensure that it’s success doesn’t stop with you. If you secure the right kind of life insurance coverage, you could be sure that it’s not just your name that lives on after you’re gone, and set your legacy in stone the way it was intended to be. We know that sometimes if an individual is dealing with serious things such as cancer, the meetings, appointments, and phone calls stack up so fast that there’s not always sufficient time to prepare. 

Using the Policy as a Temporary Stepping Stone:

There are all sorts of life insurance policies that can actually be helpful when you find yourself needing to secure an important small business loan. If you successfully negotiate a loan to begin your company and fuel you’re awesome ideas, the lender sometimes will give you the option to put up a life insurance policy as the collateral. This means that if you were to pass away for any reason, your family would not be left with any burden and the loan would be fulfilled. One instance where there this could be very useful is if you have done the market research and are extremely confident you have a product or idea that is bound to profit!

The Massive Good Sense in Shopping Around:

Life insurance is one of the forms of coverage that offers many varieties and a few confusing options to choose from. Rest assured, we can attest that it’s worth it to read all the fine print! Term life kicks in for a set amount of time, while whole life covers you for the entire duration, while also building residual value based on time increments. Universal life insurance yields interest on the cash value of the policy and gives you a little very helpful breathing room when it comes to monthly payments. Variable universal life provides the constantly changing benefit of an opportunity to take your cash value and invested in the wide world of possibilities that exist in the current stock market. 

No matter what chapter of your business’s story you are writing currently, seeing us here at Alexander Insurance can permanently set you up with insight about where to turn when you are searching for Life Insurance Coverage: One good choice after getting our advice may help give you confidence and a continuity plan that makes perfect sense for the future!


Sorting Through the Tasks of Impending Survivorship: Tips for Life Insurance Estate Planning

Once there is a death in your family, survivors are many times undergoing the task of sorting through assets and liabilities of the deceased, while they are still in the process of understandable grief from the loss. The purchase of life insurance from us here at the Alexander Insurance Agency can take away the burden of estate planning by offering financial support to family members and the all-important task of covering important business assets. After you make the decision to buy life insurance, it is important to think about your needs and circumstances and make sure that you have answers to some very basic questions about how much you need and the varieties of coverage out there. 

Here are some of the ways that life insurance can help with the task of estate planning, and ease the burden when certain perils and pitfalls may come your way.

Estate Taxes Payment: One of the most opportune ways to pay for estate taxes is by possessing a life insurance policy. Typical Federal estate tax applies to the gross estate of anyone deceased, and must be paid within nine months after any official owner’s loss of life. What do CPAs and attorneys everywhere see as a strong point regarding this action? Proceeds of life insurance are frequently free of taxation.

Functional and Full Coverage of Business Assets: Making the choice of Universal Life Insurance allows you to access an investment savings component, and even make the choice to borrow the cash value as a cushion in case you have unforeseen financial trouble along the way. Buy-sell agreements are the checks and balances set in place to set prices and terms that surviving partners need to follow to purchase the shares of the leaving or soon deceased spouse. Surviving owners will receive death benefits, and your family will see your payment for your vested interest in a company. 

The Longstanding Fruition of Faster Payouts: Any expense related to the death of an individual may include debts, taxes, and extensive costs for a proper burial. Properly liquidating assets can take time, but the Death Benefit of a life insurance policy can be claimed immediately, which makes it useful for paying out expenses and downplaying the financial burden of sudden death on your loved ones and family. 

Equalization of the Estate: if there are more than one heirs to any estate, there are a few different complications you may face. It may be difficult to split up assets, and certain cases may come up when breaking up an estate that can reduce its ability to generate positive revenue. Life insurance can be used to properly equalize estate inheritance, wherein one heir may receive property while another may receive the death benefit proceeds regarding the insurance policy.

Game-Changing Planning for the Future: As the owner of a policy, you will have the option to choose how the proceeds of your insurance is going to be used. You can continue supporting a loved one after you pass away, which is useful for seniors, minors, and others who may need to continue alimony or child support payments. With the institution of a fully-fledged trust, you can hold assets on behalf of your beneficiary under the constant supervision of a legal trustee.

How do I Choose the Life Insurance Policy That’s Right for Me? Before you go through with a decision this important, you need to think about the answers to a few basic questions. Using these as guidelines will guide you through the choices of preparing to provide for the ones you love if anything were to happen to you.

  • Calculate the Optimum Coverage Needed: it is important to consider your yearly income, assets, expenses, and the total amount you owe. A form of coverage that provides ten times the salary you draw is a good place to start, and could be useful for nearly anyone. As the post-recession landscape has changed, it is helpful to include all outstanding debts when completing the calculations that show you how much coverage you need.
  • Deciding Which Type Fits Your Needs: If you opt for Term Life Insurance, your loved ones will receive a simple death benefit payout. This “specified term” only covers a certain number of years, but if you happen to outlive the term, the said payment will not be distributed. Permanent life insurance includes Universal Life Insurance and Whole Life Insurance, and lasts a lifetime. 
  • A Close Comparison of Insurance Providers and Their Prices: Payouts usually happen during the times in your life that are the most stressful and having a reliable provider can help your loved ones have an experience without any difficulty. The best practice is to compare personalized quotes from at least 3 different providers such as us, and check the customer service ratings of insurers if at all possible.
  • Be Fully Educated on Every Detail Within the Application: Once you find the right insurer for you, it’s time to move forward to the application process. Ask ahead of time if there are documents that you need to prepare, and what basic personal information you need to provide. Depending on the type of policy you choose, you may also need to see a medical professional for a detailed screening of your health.
  • Select your Ideal Beneficiaries: The beneficiary of your policy can be a person or an organization, and your insurance provider will tell you what vital information is needed. Social Security numbers and tax ID numbers are usually a mandatory addition, and if you plan on naming a minor or disabled child, it can be wise to leave the entire cash value to a trust. 

Is an Irrevocable Life Insurance Trust Ideal for Your Needs? If you are looking to use life insurance as a strong anchor in your estate planning, an irrevocable life insurance trust can help with controlling either a term or permanent insurance policy while said policy owner is still living. By these means, you can transfer your policy to the trust or use it to purchase life insurance, which means the trust sees ownership of your insurance policy. This trust document will determine who will have full control of the assets, designate beneficiaries and establish terms on how the beneficiaries will be able to receive their benefits. 

An Irrevocable Life Insurance Trust will swiftly remove a life insurance policy from your estate’s holdings, aiding you in getting rid of estate tax liabilities on assets that do not qualify for a charitable or marital deduction. It also can help with the allocation of any proceeds upon the death of the insured by quickly offering up the liquidity factor for the decedent’s estate and beneficiaries. The Benefits of Irrevocable Life Insurance Trust: Our experienced agents here at the Alexander Insurance Agency think that this is a great option if you want to set aside certain assets for specific purposes, but you may be responsible for paying gift taxes if any beneficiary withdraws themselves from a trust. This actually ensures that your heirs will get more funds, and will lower federal state taxes since the proceeds will be excluded from your total of the gross taxable estate. You will also be allowed to determine just how insurance proceeds will be paid out, and not be able to make any changes after a formal agreement has been signed and executed.


Key Elements That Affect Life Insurance Rates

The decision to purchase life insurance is one of the most important choices you can make to offer long-term protection and a game plan for longevity for your loved ones. When you begin looking around for the best options, it’s important to understand what factors will have an impact on your cost.

Here are three of the major things to consider when going over coverage options:

Age of Policyholder at the Time of Purchase: Generally, it’s no surprise that underwriters value younger people, as they tend to be in better health. When it comes time to pay for your coverage, you may only be paying just a few dollars a month, with older policyholders paying more. It is crucial to be sure that the term is long enough to provide you with adequate protection for a sensible number of years.

The Death Benefit’s Official Amount: When you purchase coverage, one of the decisions you make is the amount of the death benefit. This is the amount the beneficiaries will be paid out in the event of a death. Typically, it needs to be substantial to take care of any financial hurdles that may arise. At Alexander Insurance, we will work through a detailed calculation that takes into consideration housing expenses, education, repaying any accrued debt, and the cost of the funeral.

A policyholder will need to look at their annual income and multiply it by ten to assure future sustainability. However you arrive at your conclusion, it’s good to know that a higher death benefit is always going to result in higher premiums, and for that reason, policyholders should not go about this experience by getting any more protection than they will need to keep their current quality of life.

The Policyholder’s Current Condition: Your general health at the time of policy purchase is quite important, as it will be a deciding factor in setting your premium. Issues such as heart disease, blood sugar trouble, or obesity may impact the insured’s mortality rate, and they will face much higher premiums if they can be covered.

Anyone who can purchase their life insurance while they are still healthy will avoid high premiums and assure that they will secure a viable form of coverage. Some policies will guarantee coverage regardless of health issues you may have, but a physical may also be required. Assuring that the ones most important to you are covered in case anything happens to you is the best means of honoring your family. Our years of experience, fine attention to every detail, and knowledge of available policies can provide you a strong base to begin planning!


A Safety Net For Loved Ones: Choosing the Best Life Insurance Policy Duration

The loss of a family member or loved one can be a stressful and sobering time, and when unexpected, can provide an enormous strain and unforeseen burden. Having a sensible and substantial life insurance policy makes these times so much more bearable, as you can rely on the certainty that beneficiaries and dependents of all sorts will not be struggling to make ends meet. After finding a policy that will appropriately pay out, one of the most pertinent decisions is exactly how many years of coverage to obtain.

The length that you ultimately decide on will have a direct effect on the premium you’ll pay. One reason that term policies remain so popular is that their actual cost is much lower than holding a permanent policy for universal and whole life types. Term lengths range from 10 years to 30 years, and selecting the best one for you involves considering the cost of the coverage and the risk of seeing the policy discontinue when you require its protection.
The longer that a policy will run, the more your cost. Life insurers set their prices by the likelihood that they’ll have to pay a death benefit during the years you are still holding coverage. A healthy man in his 30s may pay around $2,000-3,000 more in premiums than during the first ten years of a 30-year policy as opposed to one that has just a 10-year duration.

If you do choose a policy that ends sooner and then decide you need coverage when the time is up, it will cost you more because you have since aged. If you happen to have undergone any surgeries or developed new medical issues during that time, you could be alleviated from coverage entirely depending on the condition’s severity. Here are some of the most important elements all of us here at Alexander Insurance Agency of St Charles suggest you consider while you are making the decision on what type of life insurance is right for you:

How Old You Are: If your loved ones are depending on your income, we can assist you with a life insurance policy that will last until you plan on retiring. At the very least, try to have enough in savings and various investments to be safe without a consistent income.

Your Children’s Age: Education for children and grandchildren can be paid for with life insurance policy proceeds, assuring that your most cherished individuals can better themselves later in life. Families just getting started that have young children will see a drastic improvement in the quality of their life with term insurance of 15 to 20 years or more.

Your Housing Expenses And Other Forms of Debt: When you are asking yourself how long your policy should last, it is wise for it to include the amount of time you will need to completely pay off your mortgage, loans, and debt accrued on credit cards. When tragedy strikes and it seems as if your entire existence is turned upside down, expenses such as credit cards still need their charges paid, and negative activity can result in judgments and a lowered credit score.

Looking With Expert Eyes at Term Length: When we sit down to talk with you here at Alexander Insurance and provide assistance for you and your family, there are a few very important things to consider. You can obtain “ladder” coverage for yourself that sees the installment of multiple policies. This can reduce your amount of risk by covering a variety of different scenarios via a heightened amount of spend on purchase.

A professional can always help you with all your in-depth financial and insurance issues, and we are standing by to assist you! Finding the ultimate way to secure your family’s future is our area of expertise. We are always looking to make the best of your golden years and to help pass on the joy of prosperity to your family!