Protection Products

Such a Different Mindset


I have to say, women are much better planners than men.  Could you imagine if it were up to us men to make plans for a vacation? The clothes would be shoved in the suitcases and out the door we’d go … only to reach the destination and realize we forgot our toothbrushes. 

I know I’m thankful for all my wife does. She cooks for us, shops for us, and helps keep us all healthy. Without her, I’m sure we’d have bologna and hot dogs in the fridge … and probably not much else.  

Well, when it comes to getting our finances in order, the same holds somewhat true. I’m talking about more than just balancing the checkbook and making sure the bills get paid on time, however. I’m talking about making sure everything is in order so your family doesn’t have to go through any extra heartaches. Women are naturally better at this because they think about others before they think about themselves. 

That’s where long-term care planning comes into play. Women just get it. They understand it has nothing to do with them, and everything to do with their family. No selfish decisions, no unnecessary risks. They are proactive about getting all of their ducks in a row.

Put It In Practice: We could all learn a thing or two from women in this respect. When we start looking at insurance solutions, let’s start thinking about the people in our lives who will be dealing with the consequences of our actions. It has nothing to do whether we may need long-term care, and everything to do with the impact that need would create.

So thank you to all the women who put others first.  Without you, our lives would be a mess, and our toothbrushes would still be at home.


Financial Finesse Builds Over Time


The financial stresses that keep me up at night are what I assume keep most women up at night – household expenses, debt and retirement. Thankfully, I’ve taken steps throughout my life to lessen those worries over time.

When I was 17, I bought my first car, a Ford Thunderbird. Growing up in a family of 10 meant money was always tight, however, and my parents couldn’t afford car insurance for a 17-year-old. So, I purchased my first insurance policy, automobile insurance. Oh how I hated paying that premium every month, but loved the freedom a car gave me!

A few years later, I purchased my first life insurance policy. It was a simplified issue policy that only required me to check “no” for a few questions. It wasn’t a big policy at all – a $20,000 benefit with a rider to double the benefit if I died as a result of an accident. But it gave me peace of mind knowing if something happened to me, my parents and younger siblings would not be burdened financially. 

Around this same time, I also starting working for a company that offered a retirement savings plan, called a 401(k). I knew if I saved 3 percent of my own money, the company would match that 3percent. Who doesn’t love free money?! As my earning power started to grow, I began contributing additional funds.

Fast forward to getting married … after a five-year engagement, I never thought that day would come, but it did. What was I going to do protect my husband in case something unexpectedly happened to me? What if something happened to both of us? Who was going to take care of our beloved dogs?  Did we want everything tied up in our estate to create a court battle between families? No, not at all! We had wills drafted that stated our intentions and named family members as executors of the estate. We also made sure our contingent beneficiaries matched the intentions in the will. 

Do I still lay awake in bed worrying about stuff? Yes! But not every dollar and cent because I know I have created a great foundation to continue building my financial dreams. 

Put It In Practice: August is #FinancialFinesse month. Take the time to help guide the next generation of women on how to make sensible financial decisions throughout their lives. 

#financialfinesse saving

What Would June Cleaver Do?


The 1950s “Leave it to Beaver” family life isn’t the norm for the 21st century family today. The breadwinner of the family isn’t always the husband … and the caregiver isn’t always the wife. Even though we see this every day, we don’t always remember it when looking at clients’ financial plans for their families. 

If June were the breadwinner, how would she keep the Cleaver family running if something happened to her?  How would they pay the bills? How would they put food on the table? How would they pay for child care or house cleaning if Ward needed to go back to work? 

There are so many things we take for granted today that could be gone tomorrow. While we can never know when an unexpected event will occur, we can be prepared for the potential financial impacts – no matter our gender. 

A strong disability policy would be just one of many solutions June would need to consider. If she became hurt or sick, the policy would replace her paycheck and help with any extra medical bills. This alone could create a level of peace and comfort to shift the focus away from her physical distress and help her get back to her good ol’ self in no time. 

Put It In Practice: No matter a person’s role or financial contribution to their family, what they provide is invaluable. Help them prepare for an unexpected event and its potential impact. 

DI Disability #FinancialFinesse

Planning for the Medicare Surtax


If your clients had investment income in 2014, there may be something in their recently filed tax return they weren’t expecting – an additional tax. For individual taxpayers with an adjusted gross income of more than $200,000, or joint filing taxpayers with adjusted gross income of more than $250,000, the Patient Protection and Affordable Care Act created an additional tax of 3.8 percent on investment income, effective after Dec. 31, 2012.

The tax is levied on the lesser of:

  • Net investment income 
  • The amount by which their adjusted gross income exceeds the threshold limit of $200,000 or $250,000 respectively

Investment income specifically includes gross income from interest, dividends, annuities, royalties and rents. Investment income does not include distributions from qualified retirement plans, IRAs, gains on the sale of certain business interests, active trade or business income, or any income taken into account for self-employment tax purposes. 

Considering this new surtax on investment income and the additional tax burdens placed on high wage earners contained in the American Taxpayer Relief Act of 2012, it has become increasingly important to consider taxation when making investment and financial decisions. The sticker shock individuals are experiencing after reviewing their 2013 tax returns has resulted in an increased interest in tax-favorable strategies, such as maximizing qualified plan contributions, implementing non-qualified deferred compensation plans or contributing to charitable remainder trusts. Additionally, there has been an increased interest in taking advantage of the tax-favorable nature of cash value life insurance. 

Put it in Practice: The cash values inside life insurance policies grow on a tax-deferred basis and, when designed correctly, may be withdrawn free of income taxes. The new 3.8% surtax discussed above does not apply to life insurance cash values – make sure your clients know about this advantage.