A Guide to Buying Life Insurance

There are four options for paying long-term care expenses

Get Life Long Income from Fixed Annuties

Index Universal Life insurance for more flexibility.

Considering Life Insurance? Here are some Important things to look for. When you are looking to buy life insurance, you want to find coverage that best suits your financial needs. Keep in mind that the major reason you buy life insurance is to cover the financial effects of an unexpected or untimely death. That could be you, your spouse or the both of you. The first thing to think about is deciding on how much coverage you need. Consider how long you will need it for and how much you can afford to pay for it. HOW MUCH LIFE INSURANCE DO YOU NEED? Ask yourself the following questions: • If I were to die early, how would my survivors get by financially? • Does anyone else depend on me financially such as a parent, grandparent, or a sibling? • Do I want to set aside money for my child to get an education? • Do I have a favorite organization that I would like to leave money to? • Will there be estate taxes to pay after my death? When asking yourself these questions, also keep in mind other types of insurance you currently own such as group insurance offered by your employer and future Social Security or Pension benefits. Add in other savings that you might have as well including investments and real estate. Next, learn what kinds of life insurance policies are out there and can best meet your needs such as term life, or permanent life that has a cash value component built in. TYPES OF LIFE INSURANCE TO CONSIDER There are two basic types of life insurance: term insurance and insurance that allows for cash value accumulation. With term insurance, you are basically renting an insurance plan. Term insurance covers you for specific amount of time and for a specific amount, for example, a 20-year term for $1 million in coverage. If you pass away during that term, the death benefit is given to your designated beneficiary. If the policy lapses (ends) for any reason, and you pass away, the coverage is lost. Some term insurance policies also have Living Benefit Riders attached to the policy that will cover the insured—while they are still living if they become ill with a chronic or critical illness or suffer an accident. The amount of money that the insurance company pays out to the insured is then subtracted from the actual death benefit amount. This type of term insurance acts like not only a traditional life policy with a death benefit, but also doubles as a disability insurance plan too. Life insurance with a cash value component tends to cost more in premiums in the beginning of the policy than a term insurance policy. The part of the premium that is not used for the cost of insurance is invested by the insurance company and builds up a cash value that may be used in a variety of ways. You can borrow against the policy’s cash value by taking a policy loan. If the loan is not paid back, the amount you owe is then subtracted from the benefits when you die. You can use your cash value as a way to increase your monthly income in retirement or to help pay for certain needs like a child’s education. To build up the cash value in the policy you must pay higher premiums in the early years of the policy. Cash value life insurance can be found in whole life insurance, universal and variable life policies. Once you have settled on the type of life insurance policy to invest in, compare polices from different companies to find the one that is going to give you the best value for your money. A good life insurance agent would be able to quote you on all types of life insurance from various insurance companies at no cost to you. For more information on finding the right life insurance policy for you, go to www.bjfinsuranceservices.com.

Are you interested in adding more security and flexibilty into your financial future? You can accomplish this by investing in a life insurance policy that has attached living benefit riders. Living benefits gives both you and your loved ones the added protection against life's unexpected expenses. A life policy with living benefits covers the insured with the traditional death benefit, but it also provides an option to access this death benefit--without dying, in order to cover the costs associated with a chronic or critical illness or injury. Many choose to invest in a long-term care policy to help mitigate the costs assocated with critical care, but what many people don't know is that most LTC policies have a "use it or lose it" feature, but this is not the case with life insurance with living benefits. If your health issue is a qualifying condition, your life policy will advance a portion of your death benefit for you to use as you see fit. For example, you could use the funds to pay any existing costs associated with your illness or injury, or use it for monthly bills. Whatever you choose to use for, you are in control. If your current life insurance policy does not have attached living benefit riders, then it's time to look at replacing that policy with one that does provide the flexibility and security you need for your financial future. For more information on life insurance with living benefits, visit: www.bjfinsuranceservices.com.

You may wonder if you have enough money set aside to be financially independent during your golden years. Do you have enough for retirement? Statistically, more than 1 in three 65 year old's today will live to age 90. With the average annual Social Security benefit of around $17,736, many workers are not confident they will have enough for medical expenses during retirement. The potential impact of healthcare costs on your retirement assets could be devastating. When it comes to the cost of healthcare as we age, keep in mind: Over 8.3 million people needed long-term care in 2016 The median monthly cost for an assisted living facility is around $4,051 1 in 10 people age 65 and over has Alzheimer's dementia With life insurance protection, you can supplement and protect your assets to help you avoid being financially dependent on others. Investing in a life policy with living benefits gives you a wider range of flexible features and options to help address your unique retirement concerns. Let BJF Insurance services help you secure your desired retirement plan. Visit www.bjfinsuranceservices.com to learn more.

The earlier you start planning and saving for your retirement, the better prepared you will be in reaching your financial goals in life. The following is a timeline that you can use to help you reach those important financial goals in retirement: 40 Years Until Retirement: Establish a systematic savings and investment plan by contributing to a 401 (k) or IRA; Pay down your student loans; Purchase a permanent life insurance policy; Formulate your retirement plan. 30 Years Until Retirement: Continue asset growth and portfolio diversification. Increase 401 (k) contributions; Make extra mortgage payments; Start a Roth IRA; Consider investing in a disability insurance policy. 20 Years Until Retirement: Time to develop a written retirement plan that includes paying off debts; Increasing retirement savings; Increasing the funding of life insurance policies; Maximizing your 401(k) or IRA contributions. 10 Years Until Retirement: Determine when you want to retire. Consider tax-deferred annuities; Look into long-term care insurance or life insurance with living benefits; Establish a legacy plan. 5 Years Unil Retirement: Fine-tune your retirement plan by consolidating IRA and 401(k) accounts; Determine retirement income strategy; Determine Social Security income strategy; Re-evaluate permanent life insurance and legacy options. Remember, it's never too early to start planning for your retirement. Contact BJF Insurance Services.com for more information regarding the road to retirement.

Financial security is important during your retirement years. Consider Fixed Index Annuities as part of your financial plan.

What would happen if you were suddenly unable to work due to an illness or serious accident? How would you pay your monthly bills? Here are some quick stats regarding disability in the United States: • 1 in 4 will become disabled before reaching age 67 • 56 million Americans live with a disability • 1 in 10 live with a severe disability • 7 in 10 working Americans could not make it a month before financial difficulties set in Your income pays for all of life’s necessities such as your mortgage, car payment, food and other monthly bills and protecting that paycheck is quite important for your financial security. One way to help protect your paycheck is buy owning disability income insurance. Disability income insurance provides you with monthly payments when you are unable to work due to illness or injury. Just like you pay for auto and homeowner’s insurance, you would pay a monthly premium for disability income insurance. By using your disability insurance to help cover every day living expenses, it helps you to avoid tapping into your savings and/or retirement assets. There are two basic types of disability income insurance coverage: 1. Short-term DI-Which pays benefits for short durations such as 3 months, six months or one year, after a short waiting period. This type of policy can be purchased privately (individual coverage) or in a group policy (from your employer). 2. Long-term DI-Coverage has a longer duration with a waiting period of at least 90 days. Benefits are typically paid 2, 5 or 10 years to age 65 or in some cases, for life, depending on how the policy is written. The longer duration of policy benefit, the higher the cost (premium). Both short-term and long-term coverage can be obtained either through employer sponsored coverage or purchased privately as individual disability insurance . Employer Sponsored Disability Insurance: To help provide income during a disability, many employers offer their employees group disability insurance coverage, either short-term or long-term, as part of their benefit package. Because this coverage is obtained through your employer, the coverage does not go with you if you were to leave your job or lose your job. Since disability insurance through an employer is under a group plan, the cost of coverage can change year to year. Group coverage covers all eligible employees regardless of their health status. Individual Disability Insurance: Is considered private insurance because it is purchased outside of a group plan. It can be used as a supplemental plan to a current group plan or on its own. Unlike group disability coverage, private disability insurance is underwritten, which could impact premiums costs. Even though individual disability insurance can cost a little more than standard group coverage, the benefits and costs are contractually guaranteed even if you change jobs. The coverage is usually more comprehensive as well. Individual disability insurance can sometimes be a tough policy to underwrite because the insurance carrier takes into consideration the applicants age, health, gender, type of occupation and income, whereas group coverage takes every employee that is eligible for coverage regardless of their health, age, etc. Protecting your financial security is important. Your income is a necessity and being without it could pose serious financial consequences for you and your family. Most individual disability income insurance policies offer coverage that’s flexible. Let BJF Insurance Services customize a disability insurance plan that fits your specific needs and budget with the ability to modify it as your needs change in the future.