San Diego Life Insurance Broker
A life insurance policy not only maintains a family’s lifestyle in the case of an untimely death, it can stabilize a diversified investment portfolio and even act as a common-sense, personal bank-of-one—you!
Weighing all kinds of insurance plans for over twenty years now, Holly Bishop can help you reduce risk to your family and stabilize your investment portfolio with flexible life insurance options. Feel free to call us anytime at 760-444-0200 or contact us via email to safeguard your family and lifestyle!
Advantages Life Insurance Offers San Diego Families
- The obvious: life insurance maintains family standard of living after death. Life insurance policies can be designed to provide enough “death benefit” to pay off a house and take the place of the policy holder’s income for as many years as desired (many choose an amount equal to 5, 7 or 10 years of their income.) More, the money passes to beneficiaries’ tax free.
- Permanent life insurance can act like a personal bank. If you must borrow, why not borrow from yourself at a very low rate? If you haven’t paid it back by the time you die, the loan is paid off by the proceeds from the insurance. Life insurance also stabilizes a larger, diversified portfolio because it keeps cash secure and available to borrow against.
- Life insurance acts as the most stable—and possibly somewhat profitable—component in a complete investment picture. Unlike investments in stocks or mutual funds, life insurance value never goes down to 0 (given the holder doesn’t borrow against it). According to Adam Sherman, chief executive of Firstrust Financial resources, “Over a 20-year holding period, most permanent life insurance policies have an internal rate of return of 3 to 5 percent depending on the company.“
- Life insurance policies can be structured to include disability coverage. According to the Council for Disability Awareness, 1 in 4 of Americans in their 20s will become disabled for a period of 3 months or more during the working years from 18 – 64.
Strengthening San Diego Small Businesses through “Key Person” Insurance
The U.S. government has stabilized the small business sector by allowing businesses to insure the company founder, owner or a critical “key” employee. Because the business is the beneficiary, it can use the funds it receives from insurance to cover costs until a replacement for the individual is found. These insurance policies have made the continuation and solvency of many businesses possible.
Further, a “key person” life insurance policy can act another asset that adds value to your business if you’re trying to sell it. If you’ve been paying into the policy for a long time, the policy reflects your dedication and active, central role. The “key person” insurance policy not only adds financial value, it could provide just reassurance the potential buyer needs to choose your business over your competitors’.
Great Recession Life Insurance Lesson #1: Stick with the A+ Rated Companies to Protect Clients
The economy got pretty dicey there from 2008 to 2011. When vulnerable companies collapse, they take investors’ funds with it. Some monies can be recouped, but only after protracted legal battles.
While we escaped unscathed, the overall situation got tense nationwide. Unwilling to put our clients’ lifestyle and future in jeopardy, we only deal with A+ rated life insurance carriers known for financial strength. When measured by A.M. or Standard & Poors rating companies, an A+ is interpreted as “superior secure,” and is based on “ability to pay on claims.” With our reputation riding on the carriers we choose, we choose very carefully.
Choose from a Variety of Carriers and Products to Match Your Goals, Family Structure and Lifestyle
People buy life insurance for two main reasons:
- To protect their families in case they die unexpectedly
- To stabilize their portfolios and pass money to heirs tax-free
Term Life Insurance: This low cost option has no investment aspect to it. You simply pay until a certain age (often retirement when you no longer need life insurance to replace your salary) to win a benefit should you die. Insurance carriers are not keeping your money in accounts watching it grow or deflate. They’re taking your money as a fee in exchange for accepting the risk of your death. Term life insurance is typically less expensive than permanent or universal
PERMANENT or universal life insurance is more flexible. As mentioned above, your money is held in an account for you and often you can determine whether to add more or less to it. With an average return of 3% to 5%, it should keep up with inflation for the foreseeable future. If you think you may need to borrow against it, know you will be paying interest to the account. The inability to pay back the initial loan could result in snowballing interest, cannibalizing the account.
Bishop Life Insurance: Holly has Protected Families and Businesses for 20 years . . . looking forward to 20 more!
We could go on and on about the types and benefits of life insurance, but since each family and each business has its own goals, we’d prefer to tailor the selection to you in a phone call or over coffee. Those with high incomes may make different choices than those living more modestly. Younger life insurance buyers have some advantages those closer to retirement don’t enjoy.
For over 20 years, we’ve helped families, individuals, sole proprietors and small businesses find affordable and reliable insurance plans in San Diego. If you’re interested in just following along with us for a while, sign up for our blog feed. Feel free to call us anytime at 760-444-0200 or contact us via email. We can give you an idea of your options in a quick phone call or discuss them in person. Either way, we look forward to meeting you and your family!
