JCB Wealth Management was established to provide our clients with personalized service and attention to their unique needs. As a fiduciary, we make a firm commitment that in all circumstances, your best interest comes first. We’re here to listen and create comprehensive financial plans designed for you based upon your individual goals and taking into consideration all aspects of your life, including the particular tax and accounting issues that might affect your plan. Communication -- clear information and honest answers to your questions – is one of our strengths. It forms the foundation for long-lasting relationships and meaningful results.
Life insurance, in simple terms, is a tool for managing risk. It operates as a contract between an insurance company and an individual. The insurance company receives payment in premiums, and in exchange, the insurance company provides a death benefit—that is, tax-free money—to the person or persons you designate. This arrangement offers peace of mind and financial protection for your loved ones.
Insurance helps pay a variety of obligations and eases the financial burden on those you love when you die. The final expenses for even basic funerals can be costly, at a time when your spouse or family may not be sufficiently prepared to handle the expense. Mortgage payments continue; insurance can ease the burden of monthly payments so that your family can keep their home. When you die, the family income could be affected drastically. Insurance can help replace this income, allowing the family to maintain their current standard of living and cover expenses associated with raising children and providing for their education.
The two main types of life insurance are Term and Permanent life insurance.
A term life insurance policy protects you for a set period of time or for a certain number of years. At the end of the term, you have the choice to renew it or let it end; it has no value at the end of the term. Term life insurance policies typically offer a higher payout at a lower cost than permanent insurance, but they do not build value during that time. Nonetheless, they can provide a solution for many applications, such as covering a child’s college education, or paying a home mortgage to protecting your family from that financial burden after your death.
A permanent life insurance policy stays in force as long as you continue to pay the premiums and over time, the policy builds cash value. Different types of permanent life insurance policies are available, allowing coverage to be tailored to your needs.
Whole Life Insurance policies are the most widely known. For a fixed monthly or annual payment (premium) you receive a fixed death benefit and during your lifetime, the policy accumulates value—which you can borrow against, withdraw, or invest.
Universal Life Insurance add flexibility to the mix. Both the premium and death benefit can be flexible, allowing for larger or smaller payments.
Indexed Universal Life Insurance is similar to Universal Life; however, an important difference is that the way the interest is credited to the policy’s cash value. Interest is not a fixed rate, instead, it is based upon stock market indexes.
Variable Universal Life Insurance blends attributes of the other types of permanent insurance. Flexible premiums and death benefits are possible and the cash accumulation in dependent upon the performance of investments.
Many different life insurance policies from a wide variety of insurance companies are available to meet your needs at various ages and stages of life. Needs vary over time—young families need protection and the assurance of replacement income; seniors may consider long-term care insurance, funeral insurance, or insurance to cover outstanding debt.
The team at JCB Wealth Management are experienced in helping provide you with life insurance quotes from a variety of insurers. We take a comprehensive view of your financial situation and consider all factors that shape insurance decisions to provide you with the coverage that best suits your needs.
We make sure that you have a clear understanding of all the pros and cons of insurance policy recommendations tailored to your situation. Several factors contribute to the price a person pays for life insurance, including age, gender, family medical history and lifestyle habits such as smoking or high-risk hobbies.
Our team will help you successfully navigate the questions and decisions associated with selecting life insurance as part of a well-rounded financial plan so that you can manage risk and protect your loved ones.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.
Establishing an estate strategy is crucial, yet many wait too long to put their wishes in writing. Use this helpful guide to review your estate strategy and start conversations with your loved ones, financial professionals, and legal team.