Celebrity follies get our attention when flashed in the breaking news headlines.. but we can get much more out of this news then just the entertainment value. As Eleanor Roosevelt said... “Learn from the mistakes of others. You can't live long enough to make them all yourself.”

I recently read the article “The lessons of famously bad Estate Planning” in the May issue of Insurance news net magazine. Where many celebs are named that did not have their will and estate in order before their death. Therefore creating a disaster of problems for the loved ones left to deal with the mess.

Some Examples:

Jimi Hendrix – died September 18, 1970 at the age of 27 years old, without a will. Over 30 years later his estate was still in court, ultimately his $80 million estate went to his father's adopted daughter.

source: http://www.legalzoom.com/legal-headlines/celebrity-lawsuits/battle-over-jimi

James Brown – His 2006 Christmas day death, brought out much bickering over where the proper burial place should be. A year later the estate continued to be in limbo as some surviving children put fourth a challenge on the estate.

source: http://www.legalzoom.com/legal-headlines/celebrity-lawsuits/james-browns-estate-still

Sonny Bono – Following his January 5, 1998 skiing accident that resulted in his death, Sonny's widow, Mary had to schedule her grieving time for later. She was thrown into having to take action right away by going to court to be appointed the estate's executor, and file a court petition to manage royalties. There was a line of people to make claims on the estate. That is never a good thing for those left to deal with it all.

source: http://www.insurancenewsnetmagazine.com/may10/ “The lessons of famously bad Estate Planning”

When we do not have our wishes communicated legally before our passing, our failure of action puts a burden on family members who must spend weeks, months or even years trying to straighten everything out. Which is not a stress free task to tackle. I'm sure most of us do not wish to create such a burden for our loved ones. In order to prevent such burdens on family members, it is necessary to do some simple pre-planning.

I know we don't want to discuss things that involve our death, but it is essential in order for family members and loved ones to maintain their stability. So what are you waiting for? Contact a qualified representative today!

Other Helpful Topics:

Some is better than none

Sad fact of Life Insurance

Employer Sponsored Life Insurance

How to get the best Insurance Rate

What year was it when the first Group Life Insurance for employees was introduced?

(1909, 1911, 1915, 1920)

1911 – Introduction of Employee Group Life Insurance

source: American Council of Life Insurers. Life Insurers Fact Book

Life Insurance is designed to take care of one's dependents after death... but you can't always buy life insurance when you need it. Why? You have to be in reasonably good health to purchase most types of life insurance products. 

It may seem logical to ask: Why can't I get life insurance if I'm dying? Let us look at an example to understand the answer to this question.
 

Say you make $50,000 a year, and have $3,000 in your savings account. You have a $200,000 term life insurance policy that costs you $38.00 per month. [Now if something were to happen to you – your family has $200,000 to live on instead of only the $3,000 in your savings account.] The life insurance company has this $200,000 to give to your family because they have collected $38.00 per month from similar people who did not die, therefore the insurance company can afford to pay the $200,000 to your heirs.
 

Now let us assume a life insurance company sells $200,000 life insurance polices to high risk – terminally ill people. The company realizes the high probability of paying out the $200,000 on many policies. In order for the insurance company to be able to pay out on several $200,000 policies they would need to collect some crazy amount like $50,000 per month from a lot of similar people, knowing that only a few will survive.
 

This example shows: that the more unhealthy the group is … the more the insurance company will need to charge each person in the group.
 

Most life insurance companies do not offer high risk life insurance policies. This is why you need to be reasonably healthy to get a life insurance policy. 
 

This is also why we are so passionate about Life Insurance. It makes my heart ache when someone calls to ask about life insurance for their husband because just received 4 stints in his heart and has diabetes -or- My Aunt needs life insurance because she was just diagnosed with a tumor. Usually (not always) by then it is too late to be accepted by the life insurance company.

Other Helpful Topics:

Sad Fact of Life Insurance

Some is Better Than None

Why do I need Life Insurance?

Guidelines – Why Life Insurance

How to get the Best Insurance Rate

1. Coverage Amounts are Minimal.

Although coverage amounts will very from employer to employer, more than likely you will only be offered a minimal coverage amount. Reason being... because employers try to keep their premium costs low while still being able to offer this as a benefit to their employees. This in turn can leave your family and loved ones vulnerable since the coverage amount is usually just enough to cover final expenses and nothing more ... ie: Mortgage, car loan, credit card and medical bills etc. 

2. Not Customized to Your Needs.

When it comes to Life Insurance, every persons needs are as unique as the person themselves. Group plans are geared to the group as a whole and not customized to the individual. Leaving many areas that are uncovered by life insurance. 

3. Not Portable

Employer sponsored Life Insurance can not go with you should you change your place of employment. If you cease working for an employer and do not have a backup policy in place this could be detrimental to you and your family.

4. Benefit Funds are Not Immediate.

In most cases, with employer sponsored life insurance, beneficiaries will not receive the funds for 30 days or more following the insureds death. Private policies typically payout benefits quickly, before the 30 day mark has be reached.

5. No Guarantee.

You are provided with the options that the company you are working for, decides will work for the group as a a whole. Maybe you have an affordable life insurance plan this year but the rate could go up in the following year or canceled altogether. Having a back up policy will ensure you are covered as long as you choose to be, not when your employer chooses. 

6. You may Need More Than Just Term Life Insurance.

Maybe a whole life policy is something that would work best in your situation. Usually Whole Life insurance plans are not offered to you as an option in the group plans.

7. Employee Coverage Only.

With most group life insurance plans you do not have the option to have additional family members covered within the same insurance plan.

Employer sponsored Life Insurance can be a very good thing to have. Especially if your able to receive these benefits at a good premium price or if you are not able to obtain life insurance on your own because of a health problem. See “Some is better than none” post.

Do any of the above statements apply to you? If so... North Coast Life Insurance Company offers a variety of plans that can supplement the coverage your employer provides but does not cover everything that you need it to.

• North Coast – Term Life and Whole Life products feature premiums and death benefits that are guaranteed - (Provided timely premium payments are made per the policy contract).

• The policy is yours and follows you if you change employment or living situation.

• You will be protected whether you are starting a company of your own or between jobs.

• Spouse and additional family member options are available to you.

• Option for premiums to be deducted from your checking account.

Have questions? See more posts under the Life Insurance category on this blog or Try live chat:

This weekend Downtown Spokane will be alive and buzzing with many visitors and locals getting ready for the 34

This is not only a well known event to the locals and surrounding neighbors to Spokane, but also to many elite runners as well. These elite runners come from all over the United States and many come from as far away as Africa for this road race.

Bloomsday is a three day celebration devoted to health and fitness that started back on May 1, 1977... and has shown tremendous growth, peaking to over 61,000 in 1996.
 

The two day trade show, starting Friday April 30, 2010, will have a showcase of fitness products, activities and events. The trade show is free to everyone. Sunday at 9am the run begins.
 

Our Riverfront Park in downtown Spokane, WA., will be packed with runners and spectators who will be enjoying the spectacular view of the falls, a 5 story Imax Theater, 1909 historic Loof Carrousel, Gondolao ride over the falls and many more.

We would like to send out Good Luck wishes to everyone participating in the Bloomsday event. We will be cheering you on as you pass by the North Coast Life building along the race course.

Without a doubt... the best way for us to share and keep you updated with what is happening right now... is through social media. Follow along and join the conversation...

Twitter: RitaAtNCLife - http://twitter.com/RitaAtNCLife

Facebook: North Coast Life Insurance Company - http://ow.ly/1zwsn

Twitter for Agents:

RitaAtAgntComm - http://twitter.com/RitaAtAgntComm

RandyAtAgntComm - http://twitter.com/RandyatAgntComm

How often should you have a Life Insurance policy checkup?

Frequent Life insurance policy checkups are crucial!

Okay.. so most us know... few things are as important as guaranteeing our loved ones will be financially taken care of should death come unexpectedly. It is understandable that we avoid this responsibility because of the instant undesired emotions brought about when reviewing such plans. - Well think of it this way... You can take care of this now and endure the small discomfort on your part -OR- your loved ones can go through an emotional roller coaster for weeks, months or possibly years trying to figure it all out. From the funeral arrangements to how is the mortgage going to be paid? 

A better way of looking at this responsibility is: You are giving the Greatest Gift you possibly can give. With a guarantee that you will be remembered more for this gift then any other material gift out there. 

So keep in mind – Review of your Life Insurance policies are recommended to do at least once a year, possibly more often if there is a significant life event - ie: marriage, birth of a child, purchase of a home or business, an inheritance, etc. 

Contact your financial advisor or Life Insurance Agent today! Don't hesitate on something that is so very important!
 

Other Helpful Topics:

Love Letter

Average tax refund & Life Insurance

Sad Fact of Life Insurance

Some is Better Than None

The Gift of Life Insurance

Did you know that the average tax refund an American receives is around $3036

per USA Today Article

This had me thinking that one of the most common excuses I hear why someone does not have Life Insurance is the expense. When hearing the amount of the average American tax refund and knowing that you can save a bundle when you pay your Life Insurance premium on a year basis instead of monthly, made me wonder... Why more people are not taking advantage of this money saving opportunity and providing the protection for the ones they love the most?

To explain further - Term Life Insurance is the cheapest type of life insurance out there... and taking the average tax refund ($3036)... you would only be using a portion of that refund to pay for the premium on Term Life Insurance annually. So there you have it. Pay for term life insurance annually with your tax refund, means you have no premium payment due for the rest of the year and you feel no sting for having to make the yearly payment from your refund money. Plan for this every year and there will be no surprises for you in the future. Besides your family will be most grateful that you thought of there needs.

Other Helpful Topics:

Sad fact of life insurance

Some is better than none

How does life insurance protect?

What term life insurance gives you.

Guidelines – why life insurance?

Why do I need life insurance?

A sad and unfortunate fact: Benefits of insurance are often recognized after disaster strikes. Many people, myself included, complain about paying for insurance. When money is tight it is very easy to look at your insurance premium payment as something of little importance. Sometimes it takes devastation and disaster to bring us back to reality and realize insurance is of great importance.

The article: “Insurance makes economic recovery possible for Chile” posted on Insure.com, tells how Chile will rebound much faster and easier when compared to Haiti's recovery. Keeping insurance at the top of your priority list will help the “sting” of disaster and devastation to be bearable.

There truly is no amount of money to make up for the loss of life, but life insurance certainly makes it possible for survivors to rebuild their lives!

Related topics:

Some is better than none

How does life insurance protect?

What term life insurance gives you?

Have you heard of the term “Final Expense” life insurance, wondered how this product differs from traditional insurance coverage and if this affects you? It is important for you to know the difference in order for you to make the best decision when it comes to protecting your family and loved ones.

Being somewhat self-explanatory – “Final Expense” life insurance covers the cost of your final expenses... as in funeral expenses, medical bills or wherever it is needed most when you die. The main difference between final expense and traditional life insurance is a final expense product is NOT designed for income replacement. These type of policies simply do not have large enough coverage amounts. Many experts recommend having 10 -15 times your annual salary in life insurance coverage.

Since simplified underwriting is generally done for this product, final expense life insurance can be the answer when you may not qualify for traditional term life insurance.

Keep in mind the general purpose for final expense products... are for final expenses, which in turn means the typical maximum face value for these products are $25,000.

For those of you who are older and whose families do not depend on you for financial support, this product is for you. --- But, also keep in mind, if you are not able to qualify for traditional term coverage, and qualify for this smaller face value product....Having SOME life insurance is always better than having none. If you are healthy, young and have family to support, a Term Life product is what you are looking for.

 FREE “Final Expense” brochure

Life insurance agents always tell you to keep in shape "You have to stay in shape.

My grandmother, she started walking five miles a day when she was 60. She's 97 today and we don't know where the hell she is". by Ellen DeGeneres

Question: Do you know the difference between a man and a whole life policy?

Answer: A whole life policy eventually matures.

3 ways to incorporate the two together – and put you ahead.

When setting your retirement goals, have you thought?... “If I should die before those, who depend on me... will there be enough savings for them? “

Here we will understand importance of incorporating life insurance with your retirement plan in order to give you and your family the comprehensive safety net in the event of premature death or disability. As stated on the LIFE Foundation blog: “A retirement plan without insurance is just a savings and investment program that dies or becomes disabled when you do.”

Prevent your retirement plans from dying when you do. If you die before retirement, your survivors would miss out on both your salary for living expenses and the money you were setting aside for the future. People who die prematurely haven't had as much time to put together an investment program that can really pay off. If you have sufficient life insurance, it can help pay your family's expenses and may still be there for your spouse's retirement.

Supplement your retirement income. Suppose your circumstances change and you no longer have anyone who would need the proceeds of a death benefit. With a permanent life insurance contract, you have the flexibility to surrender the policy and supplement your retirement income with the funds that have accumulated in the policy's cash value account.

Preserve your estate assets for your survivors. If you've accumulated a large estate, life insurance can help foot the estate tax bill from Uncle Sam, preserving assets for your heirs. Or, if your estate is more modest, life insurance can provide a legacy for your children and grandchildren even if you use up most of your assets during your retirement years.
 

Read more about major life events and factors affecting your life insurance needs at the LIFE Foundation
 

Learn more about Term Life & Retirement options below or call: 800-541-5858

Related Topics:

Guidelines – Why Life Insurance

Why do I need Life Insurance

Life Insurance

Retirement Planning

Instant Term Quote

Most of us insure our homes, cars and businesses. Are those things more important than our loved ones? Pondering this question helps us understand that if something were to happen to you – Life Insurance provides protection from the family losing the ability to make the mortgage or car payment, it may ensure your children receive the education you intended them to have, or continue the lifestyle you built up for them.

The recommended Life Insurance coverage is 10 -15 times your annual salary. If you can not afford this, having some protection is better than nothing at all.

View your term life insurance options

Related topics:

Love Letter

Why do I need life insurance?

Guidelines – why life insurance?

The Gift of life insurance

What term life insurance gives you.

How does life insurance protect?

Yes! - Alien Abduction Insurance is an insurance policy issued against alien abduction.¹

Alien abduction defined as: "subjectively real memories of being taken secretly and/or against one's will by apparently nonhuman entities and subjected to complex physical and psychological procedures." source: Wikipedia

Over 20,000 people have purchased this type of insurance policy.¹ via ²

Some companies offer policies for alien pregnancy. ¹ via ³

¹ http://en.wikipedia.org/wiki/Alien_abduction_insurance

² http://findarticles.com/p/articles/mi_m1318/is_n10_v52/ai_21136401/

³ http://ojar.com/view_13190.htm

Betty Grable had Million Dollar Legs. Paramount famously insured her legs for $1 million. source: history.com

Celebrity leg insurance started in 1940 with Betty Grable, a famous actress, singer and dancer, who was the first women to insure her legs for a million. source: get great legs

I came across this Love Letter on the LIFE Foundation blog, and thought it would be a perfect topic to share with everyone. This letter summarizes the very reasons that North Coast Life is so passionate about life insurance. As I have said many times before and here again... Life Insurance is the greatest and most selfless act of love you can give!

Read letter below...

Dear J.P.:

Today is November 21, 1989, and possibly you are wondering what the date has to do with writing you this letter.

While you are only four months old at the present time, I hope that this is a date you will remember, because today we purchased for you a life insurance policy. It is one like we have and it will be for your use for the rest of your life.

J.P., the difference between financial success and failure is often determined by whether or not a person can discipline themselves in a consistent and conservative financial strategy. Life insurance is ideal in this respect because it has withstood the test of time both for family security and savings … it's the greatest savings plan in the world because IT WORKS!

It may be that you will have to call upon the cash value of this policy many times during your lifetime and, at such time, we hope you will remember that we started this for your benefit.

This policy carries with it two features of particular significance. The first is an automatic purchase option, which will allow us to increase your coverage as you attain certain ages. The other feature is one that has been very meaningful to me in my financial life and it is called disability waiver of premium. This means that in the event you should ever become disabled, your financial plan will be self-completing for you and your family.

This policy is a special gift of love and affection from both your mother and me … and we suspect that it will be remembered long after all other gifts are forgotten.

May God's blessings be with you always.

Love always,

Dad and Mom

We express our love in many ways and Valentine's Day is one of those days that many of us may be trying to find the perfect gift to show our Love. Why not consider the gift of Life Insurance this Valentine's? It would be the BEST Gift you ever gave your Love! Find out how to give this unforgettable Gift NOW!

How do you feel about Life Insurance? Please share your thoughts ...

Ensuring the future of your Loved ones with life insurance is truly a selfless act. This devotion towards others is why we are so passionate about making sure everyone understands the benefits and importance of life insurance.

If you have a life insurance policy (even if not through us), I invite you to take a moment to tell us how life insurance is important to you. If you do not have a life insurance policy, I still would like to invite you to share your feelings and thoughts about life insurance.

Sharing your thoughts will help us understand what people like yourself, value most and in-turn help make a difference by educating others. We look forward to viewing what you have to say on this important subject.

--Michael Jordan said this about failure: "I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times, I've been trusted to take the game-winning shot and missed. I've failed over and over again in my life and that is why I succeed."

Wills and trusts help us to protect ourselves. These documents indicate who will make important decisions for us in the future. For this reason, understanding how wills and trusts work is extremely important. When do you need a will? When do you need a trust? What is the difference between the two? Suze Orman explains the ins and outs of this very important topic on her website and gives some critical information on how a Life Insurance Policy works with-in these documents.

With most Life Insurance websites offering people to choose their policy on line with a few clicks... Is it still a good idea to work with an agent? Absolutely!

What does an Insurance Agent do for you?

Agents have a wealth of information about the products that are available to you and which product will work best for the protection you are seeking. Since the insurance agent understands how the different policies function, they agent will customize a plan just for you.

How does this action occur? Agents will look at getting to know your situation. They may start with wanting to understand the ongoing and future financial requirements of those who depend on you. Below is a list of the most common information your Insurance Agent will ask you about:

• Your name and spouses name

• Date of birth

• How many children and their ages?

• Do you have a Life Insurance plan in place?

• What type of plans have you made for final expenses?

• Basic personal financial information

• Family income

• Other financial resources

• Possible debts

• Monthly expenditures

• Savings investments - ie: 401k, CDs, Annuities or other

• Your main objective for the insurance plan

• How your health has been?

• What medications you are taking?

• Family health history

• Personal habits or addictions

• Recreational activities

• Do you have concerns with outliving your retirement income?

To make sure that a future claim on your policy is paid out fully and immediately to your beneficiary, you should not keep anything from your agent. The insurance company uses this information to access your risk and adjust the premium for your coverage. As an example, you will pay a lower premium if you are a non-smoker. A higher premium may be charged if you have chronic illness. If information is found out at a later date, that had not been disclosed when obtaining the policy could mean your beneficiary may have a delay in receiving any of the money. So lying in order to have a policy defeats the entire propose of putting the policy in place.

Another advantage to use an insurance agent is many have professional relationships with the insurance underwriters (the people who approve your application and set the rates). This in turn means if there is any question about something on your application, the agent can shop around for you to make sure you qualify for an insurance plan before you apply.

To get matched with a local agent for yourself, fill out the request form for a FREE quote and you will be on your way to getting this expert guidance about your insurance options.

includes ANNUITY talk!

Many of us know that Annuities are extremely good investment vehicles. Those who don't will soon find out that Annuities have many benefits such as help to avoid outliving one's savings or losing that savings through bad investments or inflation.

According to the National Underwriter's article “Obama To Highlight Annuities” by Trevor Thomas, President Obama will be informing Americans about annuities in today's State of the Union Address.

It sounds as though President Obama will be trying to educate all on how annuity products will work to their advantage. If so I say Woo Hoo!!! It is about time that ALL understand how these great investment products can generate retirement income. And get people to think about saving their money as opposed to spend, spend, spend.

Learn more about Annuities

Learn more about Retirement Plans

Let others argue over small things, but not you.

Let others cry over small hurts, but not you.

Let others leave their future in someone else's hands, but not you. not you.

 

Jim Rohn

How will you be spending your last evening in 2009? (please tell us in a comment below)

Party at your place? Party at a friends? With the family at home? Out at a big celebration? Maybe even braving the cold in Times Square itself? However you decide to spend your last hours in 2009 I hope that you all have a Safe and enjoyable time.

As we say Good Bye to 2009 and begin a fresh year with anticipation, new hopes and dreams - Our New Years resolution lists may just be starting to form. I want to reminder you to not overlook the most important investment you could make in your lifetime.

Life Insurance is for the ones you love the most. Let them know you were thinking of them before they even knew it.

The Gift of Life Insurance

Why do I Need Life Insurance?

Bottom Line - Life Insurance Works!

Why Life Insurance?

Wishing you all

A Fabulous 2010

With 2009 winding down and the new year starting, it is time to prepare for the IRA season. Qualifying IRA contributions for tax year 2009 can be made up to April 15th of this year.

Traditional and Roth Contribution Limits

 

Year	Standard Contribution	With Catch-up Contribution (age 50+)
2009	$5,000	$6,000
2010	$5,000	$6,000

TSA (403(b) Contribution Limits

 

Year	Basic Limit	With Catch-up Contribution (age 50+)	Total
2009	$16,500	$5,500	$22,000
2010	$16,500	$5,500	$22,000

 

Roth IRA Income Limits - Tax Year 2009 and 2010

 

Filing Status	Full Contribution	Contribution Phased Out	No Contributions
Single Filers	$105,000	$105,001 - $120,000	$120,000 or more
Joint Filers	$166,000	$166,001 - $175,000	$175,000 or more

(source: money-zine.com)

401(k) to Roth Conversions

You can directly convert funds from a traditional 401(k) to a Roth IRA. Beginning in 2010, there are no income limitations for conversions to a Roth IRA. In addition, if you convert in 2010, you will be able to spread taxes over a two-year period, splitting the payment equally on your 2011 and 2012 income tax returns. This should make it easier to pay the taxes due on the converted funds.

If your client is leaving his employer, have them consider transferring their 401(k) assets to a Traditional IRA or a Roth IRA. Taxes will be due on the amount that is converted to a Roth IRA. However the new Roth IRA will grow tax-free thereafter. Appropriate tax and legal guidance may be needed by your client. 

Seven Different Types of IRAs

Many people know about Traditional and Roth IRAs . . . but there are a number of other types of IRAs as well. Here’s a quick look at 7 of the most common.

1. Traditional IRA

2009 and 2010 contribution limit is $5,000. Over age 50 limit is $6,000

A Traditional IRA is an individual savings plan for anyone who receives taxable compensation. Contributions may be tax-deductible. Earnings in a Traditional IRA grow tax-deferred until withdrawn. They will be taxed when withdrawals begin and withdrawals must begin by the time the IRA owner reaches age 70½ . Contributions to a Traditional IRA after age 70½ are not permitted.

2. Roth IRA

2009 and 2010 contribution limit is $5,000. Over age 50 limit is $6,000

While contributions to a Roth IRA are not eligible to be tax-deductible,a Roth IRA has its advantage on the back end, with few requirements and limitations regarding withdrawals. A Roth IRA offers you: tax-free compounding; tax free withdrawals if you are older than age 59½ and have owned the account for at least five years; the potential to make contributions to your Roth IRA after age 70½ without the requirement of having to make withdrawals.

3. SEP IRA

Contributions cannot exceed $49,000 for 2009 and 2010

The maximum that can be contributed to a SEP is 25% of employee compensation) SEP stands for Simplified Employee Pension. This type of IRA is set up by an employer for the employees and like a pension plan, it is funded by employer contributions only. Contributions are tax-deductible.

4. Spousal IRA

2009/2010 contribution limit of $5,000. Age 50 and over limit is $6,000.

This is actually a type of IRA that lets a working spouse make a Traditional or Roth IRA contribution on behalf of a non-working or retired spouse. The working spouse’s income is the determining factor as to whether or not a “Spousal IRA” contribution can be made. Contribution limits and eligibility requirements are the same as those for a regular IRA.

5. Inherited IRA

(No contributions allowed in some cases)

A Roth or Traditional IRA inherited by a non-spousal IRA inherited by a non-spousal beneficiary. You cannot treat this type of IRA as your own. (If you inherit your spouse's IRA, you can name yourself as the new owner and make contributions and withdrawals from it.) Distributions from inherited IRAs are subject to required minimum distribution rules; they must be taken over the owner's lifetime and the inherited assets cannot be rolled over into a Traditional or Roth IRA that you own. Inherited IRAs may not be converted into Roth IRAs.

Rollover IRA

2009/2010 contribution limit of $5,000. Age 50 or older $6,000.

Assets distributed from a qualified retirement plan may be rolled over to a Traditional IRA, which may be later converted to a Roth IRA, if desired. Assets can be commingled within the IRA and rolled into another employer plan in the future.

Education IRA (Coverdell ESA)

2009/2010 contribution limit of $2,000

This type of an IRA provides a way for the middle-class investor to save for a child's education. Parents and/or guardians can make nondeductible contributions totaling up to $2,000 annually on behalf of a minor child. The growth is tax-free. Withdrawals are tax free provided that the money is documented as having been used for education expenses. The Coverdell ESA must be distributed to the “child” before age 30 (unless the “child” has special needs). Single filers must have a modified adjusted gross income (MAGI) of $95,000 or less and joint files must have a MAGI of $190,000 or less.

Annuities can provide assurance of a steady stream of income for life. Now tell me who wouldn't want that?

If you have a 401k, IRA, CD or Savings Account in which you pay taxes on the interest you gain? Then I would suggest rolling that investment into an annuity. -OR- If you have Stocks that are currently decreasing/shrinking your nest egg away, then you may want to roll it into an annuity.

Visit the Annuity Basics page to learn more.

See FREE quote

What do you get when you buy a term insurance policy?

• Term Life Insurance gives you...Life Insurance protection for a specific number of years.

• Term Life Insurance is...Temporary Life Insurance Plan.

• If you were to have an untimely death during your coverage period, your beneficiary receives the proceeds... Usually free from federal income tax.

• Term Life Insurance Policies... can be obtained for protection coverage periods as 5, 10, 15, 20 or 30 years.

• Term Life Insurance premiums are usually 2-3 times less than the permanent “Whole Life” Insurance, because it is temporary and does not build cash value in the policy as whole life policies do.

• Term Life Insurance covers you for the specified amount of years that you choose – If you outlive the Term Insurance coverage time, the Term Insurance ends. One advantage to having term insurance and not letting it lapse is you are usually able to get a new policy easily. Be sure to get the new policy ready to be placed before the old policy ends.

Life Insurance is an important asset in todays life.

See Instant FREE Quote Now! 
 

See related articles below:

Why do I need Life Insurance?

Guidelines – Why Life Insurance?

Life Insurance Gifts empower you to make a generous financial contribution to your loved ones when you may not have many assets. Your gift will help ensure the future of your family, children and loved ones to have a strong personal financial situation, especially if they depend on your income.

I believe that obtaining Life Insurance is one of the most selfless planned gifts that you could ever give to another person. Have you ever heard of anyone complaining about receiving a Life Insurance benefit? Well I know that I have not. In fact I have read many stories about how thankful someone is when they were on the receiving end (beneficiary) of the Life Insurance policy. How they could not have survived, kept the house, gone to college, paid for the medical bills or even in some cases put food on the table. 

Now as we are gearing up for the largest shopping day of the year. And everyone seems to be watching what they spend more closely in these hard times. Would you say that we have learned how to do “Wise Spending”? Well if you have learned how to effectively yield the most benefit as possible in your spending, then you may have it figured out. 

Gaining the most benefit possible for the money it will cost. I believe that everyone would agree with wanting this for themselves. We just have not learned this behavior. Well let me give you a heads up, and tell you that you would have just that, with a Life Insurance policy.

Term Life Insurance is very affordable and the most popular type of Life Insurance available. Want to check out rates for yourself easily, fast and without talking with an agent? This is the site for you to check out www.insureyourfamily.com

As we hit this gift giving season with wanting to get the most for our money, consider the gift of Life Insurance for the ones you love.

Wishing you many special moments with your family and friends this Holiday Season.

 ZHV7DA53FS4C

Tax-deferred: an investment account in which some or all taxes are paid at a future date.

• Tax-deferred investments, particularly refer to retirement accounts which allow deferral of taxes on contributions, growth or both. Upon withdrawal of the funds (usually during retirement) taxes are then paid

401k: a retirement plan offered by a company to it's employees. Main feature is the tax-deferred contributions and growth. The company may also provide matching contributions.

Keogh: a retirement account offering tax-deferred growth. Utilized by people who are self-employed or are employees of a non-incorporated business.

Deductible IRAs: Individual Retirement Account. One of the several types of retirement accounts allowed by the IRS to provide tax-deferral or other tax advantage. The three types of these IRAs available are:

Deductible IRA	Tax-deferred contributions and growth
Non-deductible IRA	Tax-deferred growth only
Roth IRA	Tax-free growth

Inherited IRA aka: Beneficiary IRA
 

An Inherited IRA is an individual retirement account (IRA) that is left to a beneficiary after the owner's death and usually are received from a parent, but can be from anyone other than your spouse.

IRAs are among the largest assets left to beneficiaries. Since Inherited IRAs are specifically designed for IRA beneficiaries, they offer an opportunity to continue tax-deferred growth of inherited assets. Generally speaking it is better to leave the money within the IRA as long as possible to continue the deferred taxation status.

Losing a loved one can be an incredibly difficult time, and having to deal with financial issues during this hard time is something none of us want. But the question remains: What should I do with an Inherited IRA? Since the responsibility is now yours... as in the earnings and future payouts now belong to you along with the taxes due are now your responsibility as well. A couple options you will need to consider are:

1. Close the account and take the money in a lump sum. Keep in mind, if you do so you will owe taxes immediately.

2. Roll the inherited IRA over into your own IRA, if that turns out to be a possibility for you to do, it would be the more efficient option.

As the beneficiary your options will vary depending on the status of the inherited IRA and generally depend on whether the IRA owner dies before or after April 1^st of the year following the year in which he or she turned age 70½.

Since this can be very confusing it is best to have some guidance from a qualified advisor before making such decisions.

Related topics:

What is a Rollover IRA?

What is an IRA?

Rolling over your 401k plan into a Traditional IRA is a key financial step you when you change jobs or retire. Rolling over a 401k plan can be tricky for some people if they are not careful, because if the money does not roll over correctly and end up in your hands you can be penalized heavily.
 

Eligible distributions from such plans can be rolled over directly into a NCL Traditional IRA without incurring any tax penalties, and assets remain invested tax-deferred. Consolidation multiple employer-sponsored retirement plans into a single Rollover IRA can make it easier to monitor your assets and gives you the freedom to be able to convert to a Roth IRA at a later date.

When rolling over your 401k make sure to have qualified guidance. Rolling over a 401k can easily be accomplished along with avoiding potential penalties and taxes.

More IRA information

Basic information about Annuities.

Annuities can be a complicated products, we will go over the basics of annuities now and later get into the more specifics about the different annuities available.

An annuity is a contract that provides income for a specified period of years, generally used to provide income for retirement years. Keep in mind annuities are long-term financial products. Annuities are unique in their ability to provide lifetime income, therefore provides protection against the possibility of outliving one's income. The Annuitant is the person who receives benefits from the annuity.

All interest grows tax-deferred, allowing you to potentially accumulate wealth faster than if taxes were due on interest each year. Tax deferral means that any amount earned in an annuity is not taxed until earnings are withdrawn. This means interest, dividends and capital gains can accumulate without being subject to current income taxes. Taxes are paid at ordinary income rates, regardless of how long the annuity has been held. Tax deferral ensures that you do not pay a dime on your interest earnings until the funds are withdrawn. Annuities also outshine CDs and other savings plans in terms of the yield you will see on your investment.

Annuities are investment contracts where you make payments either in a lump sum or in a series of contributions over a specific amount of time to help provide income upon retirement. In addition to being used for retirement income, they can be used for any situation that requires a steady stream of income at some point in the future, such as to fund a college education.

To sum it up – in short. While life insurance protects against premature death by creating an estate, annuities protect against outliving one's income by liquidating an estate. Annuities consist of funds set aside for a certain period of time, then the money is returned in increments as guaranteed income repaid.

More ANNUITY information

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You can also Direct Message (DM) on twitter (RitaAtNCLife) leave a comment here with your question or see the North Coast Life website for more information.

IRA – Individual Retirement Account

IRA's provide a tax deferred or tax-free way of saving for retirement.

Traditional IRA: Your money grows tax-deferred until you withdrawal it from your account. Growing tax-deferred gives you a tax deduction which in turn reduces your taxable income. Basically you are not paying tax on the income you set aside in a Traditional IRA. This means you will not have to include interest, dividends, or capital gains from your IRA in your annual income.

Now when you decide to make a withdrawal, funds will be subject to regular income tax, as this is now considered ordinary income. Additionally if you withdrawal before age 59 ½ a 10% penalty will be included to the income tax taken at the time of withdrawal for early distribution.

Another age requirement is a minimum distribution must be taken after age 70 ½.

Roth IRA: Give more flexibility but are not tax-deductible. Contributions can be withdrawn at anytime without penalty or tax, along with eliminating the need to take a minimum distributions after age 70 ½ as the Traditional IRA does. Disadvantage is you do not get the income tax deduction when you contribute to the Roth IRA. There is adjusted gross income limit of $100,000 so this is not for the high level corporate executives. Although coming in 2010 this income limit with be lifted. More good news, is those taking advantage of this 2010 conversion period will be able to spread out the time in which you report your income. Therefore you can report half the income from the conversion in 2011 and the other half in 2012, spreading out your tax obligation.

Choosing IRA's can be complicated it is always best to seek qualified guidance when making this important decision.

While at work, I handle a number of Live Chat inquiries that come across a Life Insurance website. As a result of this job, I get some unusual questions presented on my screen. Recently I was asked if someone could purchase life insurance for a parent without their (the parent's) consent?

At first I get a big chuckle from the question, then I begin to think why would you want to do such a thing? Are you up to no good? I do not know of any insurance company that would issue such a policy without the proposed insureds signature. The only situation that I can think of that would require no signature from the proposed insured is when a parent obtains a policy on a minor child to cover the funeral expenses that may be a hardship if the unfortunate happened to the child.

To the best of my knowledge there is no such product available from any reputable insurance company. If you know of such a thing from personal experienced or know of someone who has, I would be wondering if the proposed insured had their signature forged on the insurance application. If there is an insurance company out there that says they offer such a product, I would also be wondering how legit that particular company is?

The basic requirement for life insurance is the person who buys a policy must have an insurable interest of the person being insured. Insurable interest is having an interest in the survival of the person who is being insured. For example, a wife has an insurable interest in her husband's life, because she would be financially harmed if he were to die. Another example, a company owner has an insurable interest in a key employee's life. The talents and experience of key individual(s) account for much of the business success. Therefore the company would suffer financially if the key employee were to die.

Learn more about the different Protection Types of Life Insurance

Common Guidelines to Life Insurance:

Young Families: Are you considering starting a family? Life Insurance should be obtained if this is the case. At this point in your life it would be to your advantage to obtain life insurance since rates are lower at younger ages and can be locked in for, a predetermined amount of time.

Established Families: If you have family and/or others who depend on you, then there is no question that you have a definite need for Life Insurance. This is not limited to the person who works outside the home. Life Insurance needs to be considered for the person working in the home. Think of the costs involved to hire someone to do the domestic chores, home budgeting, child care, etc. This would cause significant financial burdens for the surviving family and/or loved ones.

Children: The main purpose to obtain Life Insurance on a child is if the unexpected death of a child would become a financial burden, such as paying for the medical costs or funeral and burial expenses. The advantage to obtaining a policy on a child is the rates are very low. Some adults still have the policies that their parents obtained on them when they were young; although the policy may not be large it can be very beneficial.

Young Single Adults: A few of reasons for a single adult to need Life Insurance would be to pay for their own funeral costs, outstanding debts or if you financially support an elderly parent or other person. Term Life Insurance works well for young adults as the rates are very affordable. At this point in your life you should carefully consider permanent Whole Life Insurance. This is one of the best times in your life to obtain a Whole Life policy since the rates are usually better at a younger age and you can use the cash value that builds in these policies to help fund your retirement years.

Working couples without children: Having life insurance in this situation is beneficial in covering the funeral costs with an unexpected death of your significant other. Perhaps one spouse contributes more to the household income or would want to leave their loved one in a better financial position such as paying off the home mortgage.

Retired and Elderly. For those of you in this age group, Life Insurance is beneficial in paying for funeral costs, medical bills and estate taxes. Maybe you have thought about leaving a legacy gift, charitable gift or funding a grandchild's education. All of these scenarios and many more can be obtained through a Life Insurance policy.

Whatever your situation, once you know that you have put the safeguards in place for your family and loved ones, you will be able to spend more time enjoying your life, and not worrying about it. Provide the Gift of financial stability to your family - Apply Today!

Simply put... You need Life Insurance if people depend on you for financial support. This could be your spouse, children, or dependent parents.

Common Needs for Life Insurance:

Replace your income. If people depend on your income, your death causes a financial shortfall. Life Insurance can replace that income for them. (Especially those with minor children as dependents.)

Replacement care for others. If you provide the daily care of a household, your contributions have financial value and your death would cause need for replacement care. Again, this is true with small children, and also extends to those responsible for the care of an elderly relative or an older child with special needs. Life Insurance may be needed to provide continued care.

Pay for expenses as a result of death. Some examples of these expenses include cost of burial (funeral service, cemetery plot, casket, hearse, minister, cosmetology, grave marker), legal fees / estate taxes, credit cards, mortgage loan, etc.

To cover your business or key employee of your business. If you or someone in your business provides a critical contribution to the business there may be serious consequences if this key person would suddenly die. Life insurance may be needed to enable the business to survive this transition, or there may be a need for cash to enable remaining business partners to buy out the heirs of a deceased partner.

Fund a charitable interest or create an inheritance. Even if you have no other assets to pass on, you may have a desire to support a charity or create an inheritance. Life Insurance can significantly help fund these interests.

Provide supplemental income later in life. Most people know about "Term" Life Insurance, but there is also Permanent Life Insurance (Whole Life). Permanent Life Insurance builds cash value which can be used in various ways. In some instances it may make sense to fund a policy so that it contains cash value which can be withdrawn or borrowed during retirement.

Obtaining life insurance on yourself so that others will be taken care of is one of most selfless and loving acts that you can do. Ensure the future of your family – See my FREE term quote NOW!

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This just may be what your 401k needs.

Roth IRA Conversion

2010 will be here before we know it. With all the uncertainty that we are experiencing these days within the financial realm one thing that IS CERTAIN pertains to the Roth IRA. The 2010 conversion period is just around the corner. To help with understanding what your options are and the NEW 2010 eligibilities here are some things to consider when making a decision about your IRA.

Traditional IRA -vs- Roth IRA

(pay taxes later) (pay taxes now)

Both IRAs provide a way to save for your future

So which one is better? In this comparison your answer is: Go with the one that will let you pay your taxes at the lowest rates. If you expect your tax bracket to be lower today then in the future, then a Roth IRA Conversion is a good idea for you right now.

Traditional IRAs are funded with your pretax dollars so your tax bill is deferred until the money is withdrawn in your retirement years. Your contributions may qualify as deductible contributions which reduce your taxable income in your Traditional IRA.

Roth IRAs tend to be funded with after tax dollars so your withdrawal dollars are federal tax free at the age of 59 1/2 . So ultimately all of the future gain will be tax free, provided you have had the Roth IRA for 5 years, your distribution age is 59 1/2 or funds are for a first time home buyer.

2010 opens the door to more people for the Roth IRA Conversion. The Adjust Gross Income limit which has been at $100,000 has been lifted for 2010. More good news, is those taking advantage of this 2010 conversion period will be able to spread out the time in which you report your income. Therefore you can report half the income from the conversion in 2011 and the other half in 2012, spreading out your tax obligation.

Contact your North Coast Life Representative to learn what option is best for you and your situation. 800-541-5858

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