-Term Life Insurance-
Term life insurance provides coverage for a set period of time at a generally lower cost than permanent insurance. Many term life insurance products allow you to convert to a permanent policy, such as whole life insurance. The cost of insuring oneself increases over time, so it's important to understand your short- and long-term needs for financial security when you select a policy.
-Permanent Life Insurance-
Permanent life insurance provides you with financial protection for your entire life, as long as the policy remains in force. Because of the flexibility permanent life insurance offers, there are several types of policies you can purchase.
-Whole Life Insurance-
The benefits of whole life insurance include guaranteed fixed premiums, a guaranteed death benefit and guaranteed cash value growth. This means that with whole life insurance, your premiums never increase as long as they're paid, and you can also take advantage of "living benefits," which enable you to borrow against the cash value of the policy for any purpose while you're alive. Borrowing cash from the policy can help in financing life-changing events or emergencies, and the policy's cash value accumulates on a tax-deferred basis. One thing to keep in mind when purchasing whole life insurance is that loans reduce the death benefit of your policy, and loan interest should be repaid in order to prevent lapse.
-Universal Life Insurance-
Universal life insurance provides lifetime death benefit protection along with flexibility that gives you choices as your needs and finances change. It offers options such as coverage amounts that may be increased or decreased, and premiums that you can vary based on your finances as long as there is enough money in the account to pay for the monthly insurance and administrative charges.
-Variable Universal Life Insurance-
Variable universal life introduces an investment component. With variable universal life, you can allocate net premiums and account values among divisions of a separate account and guaranteed principal account . You can direct a portion of your net premium payments to any of the investment options available through the separate account depending on the particular variable universal life product. Each investment option offers a different level of risk and growth potential. One feature of variable universal life insurance (and universal life) is its premium flexibility: you can skip payments as long as your policy has accumulated enough account value to meet the monthly deductions. Also, you can add numerous riders to your policy. Riders are available for an additional premium.
-Disability Income Insurance-
A sudden interruption of income — due to an extended period of sickness or injury — can have serious financial consequences for many of today's employees. If you are lucky, you may receive group long term disability benefits through your employer. However, you will need to make sure the benefits available though your group long term disability coverage are adequate for your needs. Group long term disability benefits are taxable if your employer pays the premiums, may be capped at a relatively low amount, and may not cover variable income such as bonuses or commissions. As such, these benefits may not be enough to maintain your lifestyle or pay all your bills if you become too sick or injured to work. An individual disability income insurance policy can help supplement your group long term disability benefits and protect a larger portion of your income. This, in turn, provides a fundamental layer of security for your financial future. An individual disability income insurance policy you purchase on your own is fully portable, meaning you won't have to worry about losing coverage if you change jobs, and the benefits paid are tax free if you are the premium payor. In addition, an individual disability income insurance policy cannot be canceled by the carrier (as long as the premiums are paid), and with a guaranteed renewable policy, your premiums will never change for the life of the policy.
Retirement may seem far away, but it's never too early to determine how much you'll need and to begin the process of saving. Making smart financial decisions now can help impact how you live in retirement. We can assist you along the way with our Individual Retirement Account (IRA) program—it's designed to help you reach your retirement goals.
An IRA is a tax-deferred personal savings account that allows you to save for retirement without a company-sponsored plan. Throughout your lifetime, you can make tax-deductible "contributions" to your IRA, which you can then invest in basic securities such as stocks and bonds. For 2013, the annual amount you can contribute to an IRA is the lesser of 100% of earned compensation or $5,500. If you are age 50 or older (as of December 31 of the tax year to which the contribution relates), you are eligible to contribute an annual "catch-up" contribution each year of up to $1,000.
With a traditional IRA—the most common type of IRA—income taxes are deferred until you withdraw them, so you don't pay annual federal (and, in many cases, state) income taxes on your earnings. At age 59 ½, you can make taxable withdrawals from the account called distributions for your retirement. If you choose to take distributions before you turn 59 ½ years old, the government imposes a premature distribution penalty of 10% on your withdrawal. Additionally, when you turn 70 ½ years old, you are required to take distributions by April 1 of the calendar year.
Life insurance can be the foundation of your financial security and can provide comfort and stability for your family. The purpose of life insurance is to help provide your loved ones with financial protection after you die, in exchange for the premiums you pay to your insurer during your lifetime. Some life insurance policies can provide you with financial protection for the short term, while others accumulate cash value, offering a living benefit that can be used for supplemental retirement income, funding for a child's education, or cash for emergencies.
Big changes can happen in your life at any time, so you have to think carefully about financial decisions that may affect your future. Whether your family is growing or you're trying to limit the impact of a transition on your loved ones, remember your long-term goals. You may be considering important life events like college or marriage; you may be put in a position of caring for the people who supported you throughout your life; or you may be negotiating a settlement to divide your combined assets — no matter what the situation, you've got a lot to think about. Planning now could help make the difference between just getting by and living comfortably down the road.
Our firm does Estate and Business Planning for Family Businesses, Affluent Individuals and Financial Institutions. We use insurance services and products: Life – Disability – Health – Long Term Care – Annuities. The David Capital Group, Ltd. is operating in the life insurance and financial services industry. Federal and state authorities regulate the sale of life insurance and other financial service products. Our producers are licensed in the following states: Arizona, Arkansas, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Missouri, New York, Ohio, Oklahoma (Resident State), Texas and Wyoming.
The David Capital Group, Ltd.
6301 Waterford Boulevard, Suite 105
Oklahoma City, OK 73118
Phone: (405) 445-5030
Email us: email@example.com