The firm of Steven H. Kobrin, LUTCF
I am second generation in the life insurance business, and have brought our local general agency on to the national stage. In doing so, my team and I have created an independent brokerage with a truly unique platform of services, for both consumers and their advisors. These include:
* A policy for virtually every applicant, from preferred risk to high-risk.
* Applications approved at the rate quoted
* Complementary policy audits for all clients to ensure optimum product performance.
When I am away from my desk, I am spending time with my family, especially my darling granddaughter. I am a serious martial arts practitioner, as well as a student of philosophy, religion, and psychology.
BA in Liberal Arts
I am licensed to sell life insurance in every state except Alaska and Hawaii.
Financial advisors use a number of factors when they develop a marketing plan. One, obviously, is compensation. Older people, in the pre-retirement and retirement stages of life, tend to have more money to spend on financial products and services. For example, from my point of view as a life insurance broker, I make more money in commission selling a $1 million policy to a sixty-year-old, than to a 30-year-old, all other things being equal. This is due to the fact that life insurance for an older person costs more than for a younger person.
Related to this is, of course, financial need. Older people tend to have a more complicated financial portfolio. There are insurance products, investments, business interests, etc. A financial advisor has the opportunity to utilize more sophisticated strategies and tactics for this type of client. It's more of a challenge. And again, the greater the demand for services, the more they have to pay.
At the same time, advisors can't only focus on the short term. You need to build a clientele that can sustain your firm over the long term. If you can acquire a 30-year-old person as a client now, that person can stay with you for decades, and continually make use of your services. So it makes sense to organize your business so you can cost-effectively cater to younger people with simpler needs and less money to spend.
For me, a big factor is belief in the product. I think everybody deserves a decent burial, and every family and business deserves financial sustenance. Life insurance does this. And I understand that a family can tragically lose a loved one at any time, and at any stage of life; and that a business can lose an owner or key person at any time as well. This is why I will sell a policy to anyone, regardless of age or station in life. The product just does so much good.
I think that Kevin Michels has provided you with solid advice to stabilize your finances. I would like to add a non-financial angle to the conversation.
I recently accompanied both my parents to their final destination. They were also octogenarians. In addition, I have an aunt and uncle both approaching age 100, and I am by their side as well.
All four of my elders have had the same goal as you and your wife; to be comfortable, and not worry. Stabilizing their finances was indeed essential to accomplishing that. But there was a lot more to do.
I think that what has most led to their peace of mind has been making peace with themselves. I’ve noticed how they each have undergone a process of coming to grips with who they are and what they've done in life. Some have found the process easier than others, but all have found it necessary to do. It's all about deep personal reflection, and involves a lot of forgiveness. As best as I can tell, it also involves a lot of tying together the loose ends, and “writing a good last chapter for their life book.”
When people no longer have the opportunity to generate additional income, they rightfully are concerned about making what they have last as long as will be needed. But on top of that, I think they need to make a final “accounting of the soul.” That reconciliation will be much more important than their bank balance, when their journey ends.
It sounds like you are financially set. No debt. You have enough assets and income to cover both you and your wife throughout both your lifetimes. Life insurance was probably bought to both replace earned income and pay off creditors. So, it is no longer needed for that purpose.
How about making your favorite charity the beneficiary? Many people have a favorite religious, political, medical, educational, or other organization with a higher purpose. Perhaps your experience at a university helped you launch your career. Maybe health-related research resulted in a medical treatment that benefited a loved one. Perhaps your local church became a second home for your kids growing up.
All these organizations need a constant influx of money. Many supporters of them use their life insurance policies for that reason. Their immediate family may not need the benefit, but that charity always will. You can simply assign the charity as the beneficiary of the policy, and make sure you keep it in force. When your time comes, you will be making a very significant contribution to a good cause.
I am sure you are asking about dividends from investments. Don't forget that some life insurance policies also pay dividends. See below.
To tell you the truth, I think the question regarding these is whether not they are passive income or portfolio income. I'm going to guess portfolio income, but you should check with your accountant.
"If you have a cash value life insurance policy that pays dividends, you may be liable to pay taxes on the amount of dividends that exceed the amount of the premiums paid for the policy. Otherwise, policy dividends are generally not taxable. Again, you will receive a Form 1099-DIV by Jan. 31 citing the amount of dividends paid that must be included in your taxable income." http://www.foxbusiness.com/features/2013/05/23/taxability-life-insurance.html
It sounds like you are talking about a policy in which the total death benefit includes the face amount and the cash surrender value. In that case, the total amount payable to you should be over the $100,000.
The carrier should pay the total amount automatically. A simple phone call to the claims department will give you an answer.
I am sorry for your loss. I just went through this process with both my mother, and a client who was also a close friend. It's very tough losing people. Having some ready cash does make it a bit easier:)