Buda Insurance Resource

The insurance company guarantees the contract value will never be lost due to market declines. Interest crediting methods such as annual reset, high water mark, and participation rates are used to determine how much interest is credited each year. Most fixed index annuities have declared minimum guaranteed rates, so even if the index has negative returns, the contract still grows by the minimum guarantee.

Upon annuitization, the accumulated value is used to provide a guaranteed stream of income that the owner cannot outlive. This predictable income can supplement Social Security and pension benefits in retirement. Lifetime income options include single life, joint life, period certain, and many combinations.

Fixed index annuities are appropriate for individuals looking to participate in market gains for retirement savings, while avoiding market risk that can impact principal. They provide predictable income later in life. However, they are not suitable for short-term savings goals since early withdrawals face surrender charges.

Fixed index annuities are offered by insurance companies, and state insurance guaranty associations provide protection against carrier insolvency. They provide benefits similar to fixed annuities, but with the added growth potential from market indexes. They are more complex than fixed annuities, so it's important to work with knowledgeable professionals when considering a fixed index annuity. Our team will be sure to fit you into the right product, as there are many options available.

The primary benefit of term life insurance is pure death benefit protection with no savings or investment components. It is the most affordable way to purchase a substantial death benefit. 

Premiums are generally level for the length of the term, meaning they do not increase as the insured ages.

Term life serves an important purpose when the income of the insured is vital to dependents. It can provide resources to pay off a mortgage, fund college, or replace income in the event of premature death. The need for high death benefit coverage may go down as dependents become more self-sufficient over time.

Term life is appropriate for young families needing coverage for a certain time frame, such as until children are grown or a mortgage is paid off. It is also useful to cover needs later in life like college costs or charitable donations. Businesses may use term life to protect key employees or recover costs to replace them.

The length of the term should correspond to the period of coverage needed. Short term lengths of 1-10 years have very low premiums but limited value. Terms of 15, 20 or 30 years balance affordable premiums with longer coverage. Term life does not build cash value like permanent life insurance.

Term life insurance quotes are based on age, health, and the length of coverage desired. Rates increase as the applicant ages. Most policies can be renewed after the term expires, but renewal rates will be higher. Converting term policies to permanent insurance without a medical exam may also be an option.

We can help you identify the right option for a Term life insurance policy. The application process involves providing information about health and lifestyle. A medical exam, blood work, and EKG may be required to underwrite the policy.

The primary features of Universal life insurance are flexible premium payments, adjustable death benefit, and tax-deferred cash value growth. Policyholders can pay planned premiums, additional lump sums, or reduce/skip payments. The death benefit and accumulation value are tracked separately.

As long as there is sufficient cash value to cover costs, the policy remains in force. Unlike whole life, universal life's cash value earns an interest rate tied to current market rates. Policyholders can use cash value through loans and withdrawals or save it for supplemental retirement income.  

Universal life is well-suited for high net worth individuals needing permanent insurance, with additional funds available for potentially higher returns. It can serve business needs like buy-sell arrangements, executive benefits, and covering estate taxes. Benefits are income tax-free to beneficiaries.

Policyholders can select a guaranteed death benefit for lifetime coverage, or an increasing death benefit to keep pace with inflation. Living benefits like chronic illness and long-term care riders are also available. As universal life does not have dividends, costs are generally lower.

Premium flexibility allows coordinating payments with changing finances over time. However, larger and more frequent premiums result in higher cash value growth. There is variability in policies and carriers, so working with a trusted advisor is key.

Underwriting follows a similar process to other permanent life insurance. Universal life may cost more at older ages but can still be purchased. There are limits on how much cash value relative to the death benefit is allowed. Loans and withdrawals can reduce cash value and death benefit.

Overall, universal life offers permanent coverage with flexible payments and cash value growth. It can fill protection and supplemental income needs for high net worth individuals and businesses. Our agency can help tailor and manage the policy over the long-term.