The Pitfalls Of Work Sponsored Life Insurance

Work Life Insurance

The Pitfalls Of Work Sponsored Life Insurance

As a life insurance agent, it is common to hear the misconception that people are fully covered and have adequate coverage with life insurance because their employer provides them with a plan. This however could not be further from the truth. Although employer sponsored life insurance is inexpensive and coverage is guaranteed to a certain limit, it is not something that can be counted on or relied on to take care of your family. Life insurance is the most important purchase you make in your life if you have a family that relies on your income. Listed below are some of the pitfalls of work sponsored life insurance:

The death benefit may not be enough for your family

Generally there are limits on the amount of coverage that can be purchased. The amount of coverage is usually based on your income. In some cases, you can purchase additional coverage up to four to six times your salary, but that may require a medical exam. Some professionals recommend a person carry as much as twelve times their salary, so life insurance provided by your employer falls way short of that figure. The exact amount of coverage needed varies from person to person and the exact plan varies as well.

If you are single, have no children, no mortgage and have no assets with a co-signer, then employer sponsored life insurance may be enough coverage for you,

When you leave your job, you lose your coverage

People every experience the loss of health insurance and the same generally applies to life insurance when you lose your job or decide to leave. Not having any life insurance during this time could be detrimental to your family, should something happen to you. Also, if during this gap you are diagnosed with a critical or terminal illness, you may become uninsurable. This is just another critical aspect to consider. Most work life insurance policies lack a convertibility option, but even when that is an option, the new policy is based on your current age and risk class at that time and premiums will reflect such.

The premiums may not be competitive

Depending on the plans offered by the employer, the policy's premiums may not be the best available for you. Most employer sponsored life insurance plans usually have an increasing premium that will occur in five year increments. If you are healthy and insurable, seeking personal life insurance is worth looking into. Just as you do with most other things you purchase and considering how important life insurance is, you should make sure you are getting the most coverage possible for the best possible price.


It is always important to make sure you meet with a qualified licensed life insurance professional to determine what options are available for you. Contact Family First Life to schedule a consultation with one of our agents, today!

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Why Would I Buy Life Insurance For My Child?

Child Life Insurance

Why Would I Buy Life Insurance For My Child?

When the topic of life insurance for a child is brought up with a parent, at first it is almost an uncomfortable discussion. They seem to feel as though a life insurance policy on their child would create a situation where they would profit off of the death of their child. I personally felt the same way when my first insurance agent brought the topic up with me and my wife, many years ago. However, to view life insurance as a profit making situation is the wrong way to view all life insurance to begin with. Life insurance is not meant to be purchased to make money off of the death of a loved one, only to ease a financial burden when a death arises.

With the average cost of a funeral near ten thousand dollars, and sometimes even more, the last thing you would want to do in a time of tragedy is figure out where you are going to come up with money for a funeral. Some people even find themselves going into debt if they don't have the money. It would be nice to take as much time as you wanted to grieve, without money being an option.

Guaranteed Insurability For Life

A person is usually their healthiest when they are their youngest. Purchasing a permanent life insurance policy would ensure that the child has guaranteed insurance for life. This is a huge benefit. No matter what ailments or disease may occur in the future, as long as the premiums are paid, the child will continue to have life insurance.

High Cash Value Life Insurance

Purchasing a policy such as Indexed Universal Life (IUL) could set the child up with a significant amount of cash for their future. A male, age 0, with a $900 premium per year, for 10 years would provide the child with a significant amount of money for their future. They would be able to use $20,000 at age 30 as a down payment on a home, take out $15,000 to help their child with college and then take out $30,000 per year from age 65 to 100 for retirement. The cash taken from the policy would be Tax-Free and all from a $9,000 investment that started at age 0. The child would have received $1,190,000 in Tax-Free money and still maintain a death benefit for his family of $3,516,298. Imagine if instead of $900 per year, it was $1,800 or more!

This cash accumulation growth alone makes life insurance a great idea for children! Contact a qualified insurance professional with Family First Life to discuss what options are available for you.

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What Is Decreasing Term Insurance?

Decreasing Term Insurance

What Is Decreasing Term Insurance?

Decreasing term life insurance is a type of life insurance where the death benefit decreases over the term of the policy. The premiums stay constant; however, because of this the premiums are less expensive than a standard term life insurance policy. This is an option that is generally referred to and used for mortgage protection. The theory behind this, is that as a person's debt is reduced, their need for the life insurance reduced.

To determine if this type of insurance is best for you, contact a professional at Family First Life to schedule an appointment.

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If Your Student Loan Has A Cosigner, You Need Life Insurance!

Term Life Insurance Can Ease The Burden

If Your Student Loan Has A Cosigner, You Need Life Insurance!

The last thing anyone is thinking about when preparing to go to college and seeking financing is what will happen if a death were occur. Neither the student nor the cosigner have usually contemplated what to do if either were to die. The Consumer Finance Protection Bureau (CFPB) has said that approximately 90% of student loans, that are not guaranteed by the Federal Government, have a cosigner. The last thing a family should have to endure is dealing with financial matters and collection efforts during the most difficult time of their life. This situation can be equally devastating whether the borrower or cosigner were to pass away.

What Happens If the Borrower Dies?

Loans that are not insured by the Federal Government, like those with Sallie Mae, will still require the money to be paid by the cosigner, even though the borrower has died. There are many horror stories like this on-line, like Steve and Darnelle Mason from California, where their daughter passed away from a liver disease and they were forced to repay the student loan. For them this proved to be financially devastating. In addition to having to deal with the pain caused by the loss of their daughter, their pain was compounded by this mountain of debt and a barrage of calls from Sallie Mae. Generally speaking, these debts are classified as a non-dischargeable debt under the Federal Bankruptcy laws, so they usually can't be removed through bankruptcy, making it even more difficult to deal with.

What Happens If My Cosigner Dies?

If this occurs, it triggers an automatic default and the full amount of the loan becomes due. Sallie Mae has been under fire for this practice, but it still happens. In cases where a grandparent cosigns for a loan, the death of this person prior to the loan being repaid happens more often than you would think. Just when the borrower is trying to establish themselves, the last thing they would expect to happen is to get a call from Sallie Mae demanding payment in full for the entire balance of the loan. The CFPB has issued urgent warnings to the public about the dangers posed by auto-defaults and the practice of lenders placing borrowers' loans in default because the cosigner has died.

How Can I Protect Myself, My Cosigner And My Family?

Luckily there is a very simple solution. Term Insurance is the lowest cost life insurance there is. The borrower will generally be young and in great health. Therefore, obtaining a term life policy for the term of the loan will have very low premiums. As for the cosigner, there are many options that are available for them as well. A term life insurance policy may be their best option as well. If either the borrower or the cosigner were to pass, prior to the loan being paid back in full, the life insurance will provide the necessary death benefit to extinguish the debt.


To determine what options are best for your specific situation, contact a professional at Family First Life, today.

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Have You Ever Looked At The Living Benefits Of Life Insurance? Amazing!

Living Benefits

Have You Ever Looked At The Living Benefits Of Life Insurance? Amazing!

Many people think of life insurance as something that pays out only upon the death of the insured. Although this is true and the most significant benefit of life insurance, many people overlook all of the "living" benefits of life insurance and what those benefits can provide. The question you have to ask yourself is not, "What happens if I die?", but "What happens if I live?" The living benefits for some people, in some situations, find the living benefits of life insurance far more valuable than the death benefit. Below I will go over the different options that may be available to you.

Cash Back Option

Most people know of term life insurance as a product that you pay of a specified period of time and at the end of that time period, the insurance if not used, the money is gone. This for some people seems like a waste of money. For those people, or people that would like to get something back, the Cash Back Option is a great benefit. It is an option that is available on a term product and at the end of the specified period of time, the insured is able to get 100% of the money paid into the policy as a lump sum disbursement. This is generally a great option for people with a mortgage and would like to provide protection to their loved ones and at the same time would like to payoff their mortgage early.

Disability Income Rider

This is a great rider for people that may have a concern in meeting their monthly financial obligations, including their mortgage payments, in the event of becoming disabled. Generally there is a 90 day waiting period and this disability income can be generally received for up to two years. It is a great supplement to an existing disability insurance policy and can provide additional much needed cash during this difficult time.

Chronic/Critical Illness Rider

This is a rider that will pay you, while still living, a portion of your total death benefit should you be diagnoses with a Chronic/Critical Illness. This amount can be significant if the policy has a large death benefit. Being diagnosed as chronically ill can be a difficult time in a person's life and having access to to a large sum of money upfront, or monthly payments, can ease the burden of having to deal with financial obligations.

Terminal Illness Rider

This is a rider that provides the insured with a portion of the total benefit if the insured is diagnosed with a Terminal Illness and has twelve months to live or less. The benefits can be used to help you cover medical costs, replace lost income or pay whatever expenses you see fit. This can be a significant amount of money and can help ease the burden of having to deal with your financial obligations during this difficult time in your life.

Tax-Free Retirement

Using the cash accumulation of a high cash value life insurance policy, like an indexed universal life policy allows the insured, at a specific period of time, chose to have the policy begin to pay them back and receive this money as a Tax-Free benefit. This is a great option that may not have the option to enroll in a 401K, do not qualify for a Roth IRA, people concerned with the state of social security or anyone that just wants to ensure they don't outlive their retirement nest egg.

Contact a qualified professional with Family First Life today, to schedule an appointment to review your life insurance needs.

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What Is The MIB And How Does It Affect You?

MIB

What Is The MIB And How Does It Affect You?

The medical Information Bureau is a company based in Massachusetts that maintains a database of extensive medical information to help underwriters determine if a client qualifies for life insurance or health insurance. If an applicant applies for life insurance and there are any discrepancies between the answers a client has given on an application, the underwriter may ask for additional information, or may decline the application based on the data received from the MIB.  In addition to a client's medical information, the MIB also keeps record of the number of times a request has been made. Insurance companies want to ensure that when issuing a policy, the client fits the risk class they have applied for. This helps keep premiums in line with the risk taken by the insurer.

Fraud

The MIB is also able to help determine fraud. If there are an abnormal number of requests from the MIB, it could alert the company to a "murder for profit" scheme. If there are many requests coming through on many small applications or a few large applications, it alerts them to a possible scheme. If they feel this is happening, at that point they would contact the authorities. It will also give insurers information as to the risk class an applicant may have been given by another insurer and if a consumer attempts to falsify information on an application, it would immediately be caught on an MIB report. Based off this is false information, the application may be declined or the insured may be offered the same risk class.

Can I view my report?

Yes. It is possible that the information on a report was reported erroneously. An insured has the right to view what is on his/her MIB report. You can submit written notice to the MIB or call them and get a free copy of what has been reported. All declines on a policy will trigger a disclosure to the applicant with the necessary information to obtain a copy.

Ultimately, the MIB is able to ensure that risk-based premiums remain in-line with the risks taken by an insurance company and allows insurers to meet the financial obligations to their policy holders.

Contact our office today, to schedule an appointment to meet with one of our agents to determine what life insurance products you may qualify for.

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Accidental Death Life Insurance - Will It Pay?

Accidental Death Life Insurance - Will It Pay?

All too often, in a first-time meeting with a client, we discover that the life insurance that they had in place to protect their family was Accidental Death Life Insurance (AD&D) only. As with most things in life, anything that is too good to be true, almost always is. Generally speaking, all carriers' premiums are within 10% of each other, so when we see a premium that is not inline we know there is an issue. When someone says they have $100,000 worth of coverage for $8 a month and they are 40 years old, it sends up an immediate red flag. These policies aren't necessarily bad due to the inexpensive premiums, but it is an issue when they think they have a full coverage policy and they do not. These are great supplemental plans along with a traditional life insurance product. We will always recommend a full coverage policy with an accidental death rider.

What Is Accidental Death Life Insurance?

These are policies that will only payout the death benefit if the person's death arises as a result of an accident. This is only a problem, if the person's death is due to anything other than an accident and this is the only type of life insurance that the person has. 

Policy Review

It's important that you meet with a life insurance agent to review all of your policies to determine exactly what types of policies you have, when or if they will expire and the risk class you were given. It's best to figure out early on that you may not have what you thought you had when it comes to life insurance. Life Insurance premiums are always at their lowest when you are your youngest and in your best heath.

Contact us today to schedule a review to make your your family is protected for years to come!

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Are You Taking Advantage of Tax-Free Retirement?

Tax-Free Retirement

Are You Taking Advantage of Tax-Free Retirement?

At the end of the day, it is not how much you make that counts - it is how much you keep! Building a million dollar or five million dollar nest egg is great, but no one knows where taxes will be in the future and how much of that nest egg you will keep. The fact of the matter is, you could end up paying up to 40% or even 50% taxes, or even more in your retirement years This could significantly decrease the long-term value of your nest-egg you've built for retirement.

Currently, the government’s only solution to the failing social security system are tax-deferred accounts, for the most part. However, these accounts have inherent issues that most people do not think about. Other than a Roth IRA, you have either a traditional IRA or a 401K plan to invest in for retirement.

Fortunately, there are strategies you can use today to enjoy more money in your retirement years. A successful tax-free retirement strategy could ensure you have more money in your retirement years. At the moment, most of us are relying on traditional retirement plans like an IRA or a 401(k), but these plans have their limitations and also have inherent risks that most people don’t consider.

Risks

There are two major risks that are usually not talked about when using tax-deferred accounts for retirement. The first being market risk. This becomes more of a problem the older you get. It comes down to how much you can afford to lose in the market. How many years can your retirement handle a year like 2008? How many years would your retirement be postponed with 38%+ losses. If you are in the beginning of your career and you are young, you may have time to make up these losses when they occur. This is not the same for a person at or close to retirement.

The second major risk is tax risk. With the state of social security, our national debt on the rise and health care, the chances of taxes rising significantly is a real threat. Because you put money into a traditional IRA or 401(k) plan, on a tax-deferred basis, not only is your original investment is taxable, but the entire growth of the account as well. If your money has grown significantly, this could mean a huge tax bill due to Uncle Sam. Some experts think future tax rates could be as much as 50% to 60% or even more.

During your retirement years have fewer tax deductions to lower your tax liability. If your home is paid off, you will no longer have the mortgage interest deduction. Also, chances are your children will be older and you will no longer get that deduction well.

RMD's

Another issue with the current retirement vehicles is your RMD’s (Required Minimum Distributions) that will start at age of 70-1/2. You will be required to take a required minimum distribution from your taxable retirement accounts. You must take that RMD, and pay taxes your money which now affects the compounding interest on your money. Your RMD's must be taken whether you need the money or not. There is a significant tax penalty if you fail to take the money out of your account, so there is really no choice. This is not the case with a tax-free retirement vehicle.

Forms of Money

There are various forms of money that are available to you. It's important that you understand each. Most people will always take the free money, which is what you should do, but they then immediately skip over the tax-free money and will immediately go to the tax-deferred money. To understand the each of the forms of money, let’s take a look at the options below:

1. Free Money 
• 401(k) match from your company 
• Inheritances 
2. Tax-Free Money
• Roth IRA (tax-free withdrawals) 
• High cash value life insurance 
3. Tax-Deferred Money
• 401(k) 
• Traditional IRA 
• TSP 
• SEP-IRA 
• Retirement accounts 
4. Taxable Money
• Wages 
• Capital gains 
• 1099 interest 

If you have an opportunity to take free-money, you should, but the next best option, tax-free money is always overlooked, by most.

Government

It is no secret that the government is deep in debt. In order to to cure that debt, they have the ability to increase taxes to be able to generate income from the 16+ trillion dollars that is currently in retirement plans. If you want to enjoy a financially successful and stress-free retirement, you need to start planning now - not just for wealth accumulation, but adding a tax-free option to your retirement strategy as well.

Indexed Universal Life

What many savers do not know is that the IRS already provides a vehicle to individuals to accumulate wealth on a tax-free basis. This strategy has been used by the wealthy, our banks and our largest corporations in America for a very long time.

These IRS tax codes for tax-free retirement withdrawals take a number of forms, including:

• Internal Revenue Code IRC 7702 -- accessing money tax-free through a life insurance policy. 
• Internal Revenue Code IRC 101 -- how a life insurance death benefit passes tax-free. 
• Internal Revenue Code IRC 72e - how money accumulates in High Cash Value Life Insurance tax-free. 

Two Tax-Free Options

When it comes to tax-free retirement, there are really only two choices. Let's see how they both stack up:

1. The Roth IRA 
• There are strict limits on how much you can contribute 
• The money grows tax-free 
• Money is withdrawn tax-free 
• The account is subject to market losses 
• The money cannot be withdrawn until age 59-1/2 
• Income limitations on who can contribute
2. High Cash Value Life Insurance - Indexed Universal Life (IUL)
• Unlimited contributions 
• The money grows tax-free 
• The funds do not affect Social Security 
• The money is withdrawn tax-free 
• Provides a generous death benefit for your family 
• There is no loss of principal even in a down market 
• You can access the funds at any time 

As you can see, using an Indexed Universal Life policy has a number of important benefits over a Roth IRA, including the elimination of stock market risk, freedom from future tax rate increases, the avoidance of future taxes on the money you worked so hard to earn and put away and no caps on the amount of money that can be put into the plan. In addition, using an Indexed Universal Life policy allows you to take out money whenever you need to. There is no need to wait until an arbitrary age to access the funds in your account. This is a particularly powerful advantage for men and women who hope to retire early.

When you use this strategy, you do not have to worry about withdrawals affecting your Social Security benefits. The money you take fro your Indexed Universal Life policy does not affect your Adjusted Gross Income (AGI) for Social Security purposes. This allows you to keep more of your Social Security, if it still exists when you retire.

A major benefit when using an Indexed Universal Life policy that is not available with any other retirement option is that upon your death, from day one, there will be a death benefit that is passed tax-free, probate-free to your heirs!

It’s important to understand all strategies that are available to you and if you currently have a retirement vehicle, supplementing that vehicle with an Indexed Universal Life policy, makes solid financial sense.

Contact us at Family First Life to schedule an appointment to learn more about this option that may be available to you.

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Why A Career At Family First Life?

Company Overview

Our mission at Family First Life is to make the families we protect and the families of our agents our number one priority. Trust and loyalty is not given it is earned and all of us at Family First will give everything we have to earn it with our clients and our agents.

We specialize in mortgage protection life insurance, final expense life insurance, retirement planning through indexed universal life policies and retirement protection through the use of fixed index annuities. We have multiple insurance carriers inclusive of Americo, American Amicable and various others that we work with in order to be able to meet all the client's needs.

Goal For Our Agents

With regards to our agents, we believe that every full time agent that works with us should net a minimum of $100,000 per year. This is the reason we offer very competitive contracts and strong renewals on multiple products. The sales training provided at Family First is very structured and places all our agents in a position to be successful. 

The lead program that we have allows all agents to have qualified mortgage, final expense and annuity leads. We want our agents helping more families than they ever dreamed possible, while also being allowed to enjoy their lives with their own families while achieving financial independence. If you truly enjoy helping families and believe that you deserve to be paid what you are worth, then Family First Life will probably be a very good fit for you whether it is part time or full time.

Highest Industry Compensation Plans

Our compensation plan at Family First Life is the HIGHEST in the industry! Raises in commission are given every two months based upon production numbers. Also, if you are a high producer with proof of previous production then a higher starting commission level would be negotiable.

FFL Comp Plan

Innovative Lead Program

We have the ability to generate brand new leads in any area an agent would like, whether that’s a zip-code, city, or county. Our leads are also purchased, NOT rented. When an agent buys a lead here they don’t need to worry about our leads being sold to numerous agents in Family First Life. Once you buy a lead, it’s yours, forever. Brand new lead prices are based on your commission rate which would mean your leads will only be $22 each.

Call in lead program: All of our leads that we mail out have an 800 phone number on the lead, which generates a call in lead when the client calls us requesting information. We have a call in lead department that is in charge of directing that client back to the original agent who purchased the data.

Take a look at a few of these lead samples here.

At Family First Life we have leads for any budget. Our lead prices range from 50 cents to $30 each. Our lead types range as well, we believe in offering many different options and allowing the agents design their own lead program.

Our Most Popular Options:

• Direct Mail Mortgage Protection leads
• Direct Mail Final Expense leads
• Exclusive/non-exclusive Internet Life Insurance leads
• Qualified Final Expense Telemarketing leads
• Call in leads for both Mortgage Protection and Final Expense

Income Streams

Family First Life gives you the ability to earn money from multiple income streams. If you want to build an agency you can, but is definitely not required to earn a substantial income. If you want to grow your own business, you can, which would give you the ability to earn more!

Income Streams Possible:

1. Direct Sales Commissions
2. Agency Overrides
3. Agency Bonuses
4. Renewals

Commission Breakdown For Direct Sales Commissions

The National Average for monthly insurance premiums are $84.00 per month. However, the average at Family First Life is over $100. This is due to our agents being well informed and trained and able to offer a higher value to our clients.

We will use $84.00 per month in the example below:

$84.00 X 12 = $1,000 (Annual Premium)

X 80% (Compensation Level)

= $800 Commission

X 75% (Advance From Carrier)

$600 (Deposited Into Your Account)

$200 (Paid month 10)

How many families can you help per day? How many families can you help per week? How many families can you help per month? If you like helping people, there is no limit on your income potential!

Commission Breakdown For Override Commissions

If you decide to start an Agency with Family First Life, you would receive an override commission on any agent that you hire. The override commission is equal to the difference in commission levels between you and your agents. 

In the example below the override is 15%:

Override On Commissions

Commission Breakdown For Renewal Commissions

Renewal Commissions are paid Annually on certain types of policies when the contract renews at the end of the year. Here at Family First Life your renewals are vested from day 1! We don’t believe in keeping your money. If you leave Family First Life, you take the renewals you've earned along the way, with you.

Here is an example of how renewals work:

Renewals

Monthly Boot Camps

We hold monthly boot camps that are run by our top producers as well as the owner of the company himself Shawn Meaike. We currently have these meetings in over 15 cities across the country.

Boot Camp Locations

FREE Training

In addition to the monthly boot camp training, we also offer instructional manuals and weekly training calls that not only go over the specific products, but sales techniques as well.

We have a Product Training call every Thursday at 11:00 AM EST. This call is usually hosted by one of our insurance carriers.

We have a Sales Training call every Friday at 11:00 AM EST. This call is hosted by Shawn Meaike who is usually joined by other Family First Life top producers.

CRM (Customer Relationship Manager)

Our innovative tracking system uploads our agent’s leads into our CRM system as soon as they come in. This allows the agent to track the status of the lead in every stage; therefore, making their lives a lot more organized and ensuring detailed attention to each and every client.

CRM

Message From The President and CEO of Family First Life

If you are interested in learning more about the Family First Life opportunity, contact us today!

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When Is It a Good Time to Buy Life Insurance?

When Is It a Good Time to Buy Life Insurance?

It is not always easy to decide when is the best time to buy life insurance because there are many factors that need to be considered in that decision. With a little thought, though, and the right information, the decision about when to buy life insurance can be reduced to just a couple of things.

The Key Factor

The most important thing about when to buy life insurance is that none of us knows when we are going to die. While this might be a little gloomy, it is the truth, and means that at any moment any loved ones that we have that are counting on us for financial support, may suddenly end up with nothing but a large number of bills and the inability to continue living in the manner in which they are accustomed to.

In the event of your death, their future could become instantly uncertain when they have no way to pay the bills - including rent or mortgage payments, food, clothes, car payments and maintenance, health insurance, and so much more. In an instant it could all be gone. Life insurance can make a strong difference with much more pleasant and predictable results.

A Secondary Factor

Will your death mean that someone else could be left with a lot of your bills to pay? Even if you are single and young, it will still cost on average $10,000 to bury you. This figure does not include the cost of any medical bills that might be encountered prior to your death. There could be many medical bills from a car accident, an illness, or any number of other potential problems.

If you have bills not paid off yet, then buying life insurance to cover them is a good idea. This could include bills from a college education, a mortgage, a car, electronics or jewelry, or credit cards. This is especially important if you have a co-signor on any of these bills.

Another Important Consideration

Life insurance is very inexpensive when you are young. Most life insurance policies - both whole life and term insurance will lock you in at a specific rate. Whole life locks you in for the length of the policy and your rates will never change. Term life, however, locks your rate in for a period of years, or terms, which could be from 10 to 30 years.

Life Insurance Is Very Affordable While You Are Healthy

Not only does health insurance change with age, but it also changes as your quality of health changes. While you can always predict that you will grow older, you cannot anticipate what kind of health you will be in - say five years from now if you wait to buy your life insurance. It is possible to get certain illnesses, even if you do not have a family history or genetic reason to expect them, which could render you "uninsurable" by life insurance companies, or raise the rates so high that you can no longer afford them. Buying life insurance while you are healthy and not smoking or participating in dangerous hobbies or sports will enable you to get the most affordable life insurance rates possible.

Many times a term life insurance policy will guarantee renewability. This applies no matter what your health is at the time your first term life policy expires. While it does not guarantee low rates, it does guarantee that you can get more life insurance. On the other hand, if you become ill with certain illnesses and don't already have life insurance, you probably will not be able to get it at all.

When you go to buy life insurance there are three options you can buy: term life, whole life and Universal Life. While whole will be about three times as much as term life insurance, it lasts usually until age 110 or 120. Universal life is usually twice as much as term life insurance, but has many different variations and can act like whole life insurance and term life insurance and can also last until age 110 or 120. Universal life insurance can also be used to provide the insured with tax-free retirement. Term life insurance will also give you the most coverage for the best price and is usually best used in conjunction with a permanent life insurance plan.

To discuss what options are best for you, contact us today to schedule an appointment.

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Why You Should Review Your Life Insurance

Life Insurance Review

Why You Should Review Your Life Insurance

With most financial decisions, most people will always seek a second opinion; however, this does not always seem to be the case when it comes to Life Insurance. This is the one thing, above all else, that should be reviewed because if there is an issue, it is always better for it to be caught sooner than later. Life insurance premiums are always their lowest during a person's younger years and when they are their healthiest. If there is an issue with your current life insurance, it would be better to know now while it can still be fixed. Listed below are additional reasons why it is important to have your current life insurance policy reviewed:

Has your family grown?

If you have recently been married or have had children, you should have your life insurance reviewed to ensure the coverage is sufficient to ensure your spouse and children are taken care of should the unexpected happen. Things to consider is how will your family survive without your pay. There are also costs such as school tuition and future college expenses that must be taken into consideration.

Has Your health changed?

If your health has improved since you took out your current life insurance policy, you could be paying more than you should. It is possible that your risk class is no longer appropriate and you could be overpaying for your coverage. Also, many people over the last few years of stopped smoking and if your current policy has you listed as a smoker, you may now be able to qualify as a non-smoker.

Are you paying a competitive price?

There are many different insurance carriers with many different products. Most people always accept the first offer made to them and are unwilling to look for something better. This, however, could cost you thousands over the term of your policy. It makes sense to get a second opinion to ensure you are paying the best possible price for your life insurance.

Does your coverage equal your current needs?

As your income grows, generally your assets also grow. This includes your home, cars, investments, etc. If you were not here tomorrow, would your family be able to make the required payments on these assets? This is an important question that needs to be answered. It's important that your life insurance coverage is enough to ensure your assets can be covered.

Are your beneficiaries correct?

Often times the life insurance beneficiary lists the insured's estate listed as the beneficiary which would make the death benefit part of the estate and therefore could be taxable. This should be corrected to avoid this. Also, are the beneficiaries appropriate for who is currently in your life now?

When dealing with a competent life insurance professional, all of these questions can be answered in less than 15 minutes by allowing an agent do a policy review. Contact us today to schedule an appointment to make sure the most important financial decision you make is what you want it to be.

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First Comes Love, Then Comes Life Insurance

Life Insurance

First Comes Love, Then Comes Life Insurance

Life insurance is probably one of the last things on your mind when you’re planning a wedding, but it’s important to consider the responsibilities a life change like this brings. As a newlywed, you must think about your responsibilities to your spouse and make sure that they won’t face financial hardship if you pass away. The younger you are when you take out a life insurance policy, the lower the premiums and easier it is to buy. Putting it off for a few years could be a costly mistake.

The simplest way to buy a life insurance policy is to work with a qualified professional that can search several companies on your behalf. A professional advisor, knowledgeable in the many different products available to you,can make this a much easier task. If you have children and other financial obligations,you may need expert guidance about the type of policy and level of coverage that would be best for you. There is never a one policy fits all solution.

How Much Coverage Is Needed

How much life cover you need depends on various factors. You should at least have enough to pay for funeral costs and to clear any loans and debts you may leave behind. As a newlywed, you have a responsibility not to leave a financial burden for your spouse. If you have children, you probably need higher levels of life insurance to provide income protection. Ideally, you should have provision to generate a lump sum large enough to cover the future income needs of your family. Think about how many years you would need to provide an income for your children in the event of your death. When there is a mortgage involved, that also needs to be considered when determining the amount of coverage needed.

Today’s more complex family structures may mean that there are other people financially dependent on you. For example, your parents may need some financial support, and it’s important to think about what would happen to them in the vent of your death. It can be difficult to talk about these things, but it’s important to face up to them and have a conversation about life insurance and other provisions you may need to make.

Employer Sponsored Life Insurance

Your employer may offer some form of life insurance as a benefit, but don’t assume this is all you need. Take a look at the cover provided and what levels of insurance available. Life Insurance provided by work will usually have a conversion option, but it will be based on your age and risk class at the time you leave your employer, if that is an available option at all. Consider taking out additional coverage while you are at your youngest and the premiums are at their lowest. Always remember that when you change jobs, your coverage may or may not be convertible.


Contact my office today to schedule a meeting to discuss the options that are available for you.



Michael E. Pfeil
Licensed Field Agent
Family First Life
www.FamilyFirstLifeMD.com
mpfeil@familyfirstlifemd.com

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What is Return of Premium Life Insurance?

Return Of Premium Life Insurance

What is Return of Premium Life Insurance?

Many people know they need life insurance to protect themselves and their families, but they still procrastinate and put off this important purchase. One of the reasons so many people put off getting the life insurance they need is that the purchase process can often be confusing. There are so many different kinds of life insurance on the market, each with its own set of benefits and drawbacks. Making a smart decision in the face of those overwhelming choices can be very difficult, and that causes many people to abandon the process altogether.

In the end, avoiding life insurance is not a smart move. If you have a spouse to protect or children to think about, you need to have sufficient life insurance coverage in place. Without life insurance, your surviving family members could lose everything they own as they try to keep up with the bills and pay the mortgage without your income. Having life insurance means they can meet those expenses and go on with their lives.

What is Return of Premium Life Insurance and How Does it Work?

Another thing that stops many people from buying life insurance is that it can seem like wasted money. After all, you will never get to enjoy the money. It is simply for the benefit of your spouse and children when you die. It can seem foolish to spend money on something that will not benefit you, even if intellectually you know you should have it.

That is what return of premium (ROP) life insurance is all about. Unlike traditional life insurance, where the premiums are simply lost at the end of the term, this special kind of life insurance can return the premiums to you, even while you are still alive.

Return of premium (ROP) life insurance is perfect for people who need to insure their lives for a specific and limited period of time. If you are working and paying the mortgage, you can use return of premium life insurance to protect your family until the house is fully paid for. If you have children at home, you can use this type of life insurance to protect them until they have graduated from college.

Return of premium life insurance offers a level premium payment for a specific period of time, also known as the term of the policy. That term is variable, but it typically lasts between 15 and 30 years. If you just bought your home, you could protect your family from future mortgage payments by purchasing a 20-year or 25-year level term return of premium life insurance policy. If you were to die while the insurance is in place, the death benefit would help your surviving spouse by paying off the mortgage balance in full or provide enough cash to ease the financial burden. If you are still alive at the end of that 20-year or 25-year level term, the return of premium policy will return all the policy premiums you have paid during the preceding 20 or 25 years and you could use the policy to pay your home off in full, saving you thousands of interest on your mortgage. At the same time, your policy provided your family with protection when they needed it the most.

Return of premium life insurance provides a guarantee of cash back and can remove some of the sting from buying life insurance. If you know you need life insurance but have always considered it a waste of money, return of premium life insurance may be just what you have been looking for. Your family still gets the protection they need, and you get your money back at the end of the term should it not need to be used.

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3 Of The Biggest Mistakes Made By Each Generation

People never plan to fail, they simply fail to plan. Contact our office today and schedule a meeting to have one of our advisors discuss Asset Protection, Wealth Preservation & Wealth Accumulation strategies with you, today!

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Qualified Retirement Plan Risks

Over funding your qualified retirement plan could put your retirement at serious risk. Not only do you have to consider Market Risk, but the Tax Risk alone could be detrimental to your money when you need it the most. 

Supplementing your retirement savings with a Tax-Free Retirement vehicle is a wealth principle most underutilized in middle class America today. 

Contact an advisor at Family First Life to schedule a consultation. Asset Protection, Wealth Preservation & Wealth Accumulation

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Life Insurance Statistics

Life Insurance Statistics: 40% of American adults have no life insurance, Over 50% of U.S. households lack adequate life insurance coverage. About 40% of people surveyed say they would have immediate financial trouble if the primary wage earner in their household died.

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401K versus Indexed Universal Life

In the past few decades, people have fallen prey to the myth that risking everything is far more valuable than safety, steady long-term growth and predictable income. Wall Street firms had much to gain by supporting this contrarian belief. Since the advent of the 401K, the stock market has almost quadrupled in total assets. This was a huge payday for Wall Street firms, but was just as much a loss for working class Americans. Prior to this, it is estimated that as much as 50% of people's savings went into High Cash Value Life Insurance.


The possible losses from market risk has to be taken into consideration. The larger this investment grows, the more you have to lose in a down market. In 2008 alone, the average employee lost 14% of their account's value. That may not seem like much to a young person just entering the workforce, but people that were near retirement and had more money invested, suffered a a disproportionate loss. Accounts for these individuals saw a 25% loss. This certainly affected some people's retirement and some either had to continue to work or accept less money during their retirement years.


In addition to market risk, tax risk could be even worse. With our National Debt on the rise, government spending, Social Security and Health Care costs, raising taxes is the only way for our government to to pay for pay for these costs. In addition to higher taxes, you will have less writeoffs and deductions. You will not have your mortgage interest, 401 tax deduction, or child credit/exemptions - inflation alone could bump you into a higher tax bracket. In coming years, taxes could consume as much as 50% of your income, or more.


It doesn't have to be this way...


America's large banks, corporations and super wealthy don't put their money where everyone else does. They use a wealth concept that has been able to stand the test of time, even during our country's most darkest hours. High Cash Value Life insurance is used for it's Tax-Free cash accumulation, liquidity and the Tax-Free, probate free death benefit.


An Indexed Universal Life (IUL) allows withdrawls of your money at anytime with no penalty, there are no losses in a down market and there are no RMD's (Required Minimum Distributions)  to consider at age 70 1/2. Also, there is no maximum limit on the amount that can be contributed.


Only a professional should be trusted to assist you with properly structuring an Indexed Universal Life policy for Tax-Free Retirement. There are many ill-informed and untrained agents when it comes to this product. Selecting the appropriate death benefit, payment amount, indexing strategy are what make this the most powerful tool to build retirement income as well as leave a legacy for your family for generations to come.


Our agents at Family First Life are trained directly by our Annuity and Retirement Division and are skilled in this concept. Contact us today to meet with a professional that can show you how much money you can retire with, TAX-FREE!



Michael Pfeil
Licensed Agent
Family First Life
mpfeil@familyfirstlifemd.com

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Cost To Raise A Child In The U.S.

Life Insurance is more more important than ever, the day a child is born. According to the U.S. Department of Agriculture, the cost to raise a child is now approximately $245,340 / $304,480 (adjusted for Inflation) according to the "Cost of Raising A Child" report.

This is approximately $12,800 - $14,970 per child, per year in a two parent household with an income between $61,530 and $106,540. This can vary depending on location of the family and other factors. This number has grown significantly since the original report that was conducted in 1960 by the USDA's first "Cost Of Raising A Child" report.

“In today’s economy, it’s important to be prepared with as much information as possible when planning for the future,” said USDA Food, Nutrition and Consumer Services Under Secretary Kevin Concannon, per a written statement issued alongside the report. “In addition to giving families with children an indication of expenses they might want to be prepared for, the report is a critical resource for state governments in determining child support guidelines and foster care payments.”

With so many other factors to consider when determining the amount of Life Insurance that is needed, the number of children and their ages must also be factored in. In addition to the number of children, the mortgage, daycare costs, private school costs, college tuition and other debts the surviving spouse will have to endure, should a premature death occur, must be considered as well. It's important to contact a professional in the business to understand all of your options and have a plan in place, should the unexpected happen. Your family is too important to not take the time to make sure they are protected.

Most people don't plan to fail, they simply fail to plan.

Contact Family First Life Today!

(844) 298-7027

www.FamilyFirstLifeMD.com

Asset Protection, Wealth Preservation & Wealth Accumulation

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Another Record Week!

President and Founder, Shawn Meaike, just announced that as a company we are well on our way to a record breaking week for production! Many agents have helped 10+ families and the week is just starting. "We have over a dozen people that have helped 10+ families and we are only 2 production days into the week". The bar has been raised! There are agents producing at a record pace and have only been with the company less than a month.

We have a significant amount of momentum...!!! 

As our company expands, we are always looking for new agents, with our without experience. If you like helping people, not afraid to work and build your own business, Family First Life may be a fit for you! We are hiring in all states, either part-time or full-time. Contact our office at hr@familyfirstlifemd.com to schedule a confidential interview, today!

To Learn More, Call Family First Life Today!

(844) 298-7027

Career Website

Asset Protection, Wealth Preservation & Wealth Accumulation

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Smoking Will Cost You 6+ Million Dollars!

Last week I took my daughter to the mall. While walking in, she saw someone she knew from school and he was smoking. My daughter said, "Dad, that's gross!". I then replied, "That will probably cost him over a million dollars, too!". Today I wanted to run an Indexed Universal Life (IUL) Illustration just to see what this seemingly small amount of money each day would really cost a person in lost potential income gains.


The boy we saw was 16 years of age. If you use a cost per pack of cigarettes of $7.50 and assume a pack-a-day habit, you will spend $2,737.50 in one year or $228.12 per month on your habit.   If you were to invest $228.12 per month into an IUL from age 16 to age 65, you would be able to draw $183,766 per year, TAX-FREE, from age 65 to age 100! All of this without your money being at risk, like a 401K or IRA and then having to pay the IRS tax on your money. This investment also provides your loved ones with a TAX-FREE death benefit!


The assumptions used in this Illustration, are as follows:

• 20 Year Backcast of the S&P 500 with an average rate of return of 8.10%.
• Top 5 of the 7 Indexing Strategies used to provide diversification.
• Increasing Death Benefit Option used to Age 65 and Level from 65 to 100.
• Minimum Death benefit selected to increase cash accumulation.
• Premiums stop at age 65, as account will be fully funded.
• Withdrawls taken from age 65 to 100.

Illustration

This is a perfect example of how small, consistent actions can compound into something huge over time! Insurance companies don't advertise anything flashy, but what they offer are risk averse products that consistently perform, year after year.



Michael Pfeil

Family First Life
mpfeil@FamilyFirstLifeMD.com

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Why Family First Life For Your Career?

Watch Our Video To See If We May Be A Good Fit For You!

www.FamilyFirstLifeJobs.com

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Companies Started or Saved By Life Insurance

High Cash Value Life Insurance

High Cash Value Life Insurance is one of the most under utilized investment vehicles, used today. With people like Suze Orman and Dave Ramsey telling everyone how terrible this product is and that no one should buy it, it's no wonder this product is so misunderstood. All financial products have their place, each for a specific situation. For anyone to have a one size fits all solution is incomprehensible. With the insurance industry being such a highly regulated industry, they would have discontinued offering the product, long ago.

If High Cash Value Life Insurance did not exist, the landscape of American business would look very different today. Below are a few famous companies that were either started or saved by Life Insurance.

Stanford University

Leland Stanford was the company's first president in 1868. He died in 1893 at which time the university fell upon difficult times financially. His wife, Jane L. Stanford, tried unsuccessfully, to raise the necessary capital to avoid a temporary closure of the school. She was, however, able to use the proceeds from her husband's Life Insurance policy to continue funding operations and to keep the school open.

Disneyland

Before Disneyland there was Walt Disney Studios, founded in 1923 in Los Angeles, CA. Eventually, Walt wanted something more and began to dream of opening an amusement park. Achieving traditional forms of financing proved to be difficult, so Walt decided to provide his own financing. In 1955 Disneyland was opened, in large part to his Life Insurance. He mortgaged everything he had, including his High Cash Value Life Insurance policies to fund the $17 million dollar venture.

JC Penney

James Cash Penney started working at a Golden Rule Store in 1898. He was eventually offered a partnership with the original owners. By 1907, the partnership was dissolved and and Penney purchased complete ownership of all three stores. Following the stock market crash of 1929 and the Great Depression, Penney found himself unable to meet payroll and day-to-day expenses. He was able to borrow from his two Life Insurance polices to help the company weather the storm.

McDonalds

In 1955, Ray Kroc decided to buyout his then partners Richard and Maurice McDonald. During the first eight years, Kroc did not take a salary. He had to overcome ongoing cash-flow issues and payroll expenses. He was able to borrower from two of his Life Insurance policies, in addition to borrowing money from his bank.

Foster Farms

Max and Verda Foster started Foster farms in 1939. They were able to do so with a $1,000 that was borrowed from their Life Insurance. They made an investment in an 80-acre farm close by Modesto, CA. They started out raising turkeys and then eventually, chickens. They now have over 10,000 employees and their products are sold globally.

The Pampered Chef

In 2002, The Pampered Chef was acquired by Berkshire Hathaway Corporation for $1.5 billion. Today the company has over 12 million customers. All of this started from $3,000 that Doris Christopher borrowed from her Life Insurance policy. She was able to use the cash to start the business from her suburban Chicago home in 1980.

To Learn More About High Cash Value Life Insurance, Call Family First Life Today!

(844) 298-7027

www.FamilyFirstLifeMD.com

Asset Protection, Wealth Preservation & Wealth Accumulation

Looking For A New Career? Visit Our Jobs Website www.FamilyFirstLifeJobs.com

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