What is Final Expense (FEX) insurance?
Final Expense (FEX) insurance is a permanent whole life policy designed to cover end-of-life costs — funeral expenses, medical bills, and outstanding debts. Coverage amounts typically range from $5,000–$50,000 with no medical exam required. Premiums are fixed for life and the policy builds cash value over time.
What is an Indexed Universal Life (IUL) policy?
An IUL is a flexible permanent life insurance policy that builds cash value based on the performance of a market index (like the S&P 500), but with a floor (typically 0%) so you can never lose cash value due to market downturns. IULs are popular for tax-free retirement income supplementation, college funding, and as part of business succession planning.
How does a Fixed Index Annuity (FIA) work?
A Fixed Index Annuity is an insurance product that credits interest based on a market index's performance. Your principal is protected from market losses — you can earn when markets go up, but you won't lose when they go down. FIAs are popular for retirement income because many include income riders that guarantee lifetime income regardless of how long you live.
What is the difference between term and permanent life insurance?
Term life covers you for a set period (10, 20, or 30 years) and pays a death benefit only if you die within that term. Permanent life (whole life, universal life, IUL) covers you for life and builds cash value. Term is cheaper initially; permanent is more expensive but provides lifelong protection and a savings component.
Who needs life insurance?
Anyone with financial dependents — a spouse, children, aging parents — should have life insurance. It's also valuable for business owners (key person coverage, buy-sell agreements), anyone with estate taxes, and people who want to leave a legacy. Even if you're retired, a final expense policy ensures your family isn't burdened with costs.
How much life insurance do I need?
A common rule of thumb is 10-12x your annual income. But the right amount depends on your debts, income replacement needs, dependents, existing assets, and goals. We offer complimentary needs analysis to determine the right coverage amount and type for your situation.
Can I use my IUL for retirement income?
Yes — policy loans from an IUL are generally income tax-free and don't count as earned income for Social Security or Medicare purposes. This makes IULs a powerful tool for creating tax-free retirement income alongside Social Security and 401(k) distributions.
What is a multi-year guaranteed annuity (MYGA)?
A MYGA is similar to a bank CD but issued by an insurance company. It pays a fixed guaranteed interest rate for a set number of years (typically 3-10). MYGAs often pay higher rates than bank CDs and grow tax-deferred. They're a safe alternative for conservative retirees who don't need immediate income.
How do annuity income riders work?
Many FIAs offer optional income riders (at an additional fee) that guarantee a minimum income amount regardless of market performance. The rider grows at a guaranteed rate (often 7-8%/year on the "income account value") and converts to guaranteed lifetime income when you turn it on. This provides pension-like certainty in retirement.