Q. What is life insurance?
A. Life insurance can be a resource of funds for your loved ones to meet their needs in the event of your death. You enter into a contract with an insurance company, which promises to provide your beneficiary(ies) with a certain amount of money (the death benefit) upon your death. In return, you make periodic payments, known as premiums. The amount of the premiums generally depends on factors such as your age, gender, occupation, medical history and whether you intend to build up cash value in your policy. Some policies may require a medical exam.
Q. Do I need life insurance?
A. Yes, if you have bills, a car loan, dependents, or a mortgage, you need life insurance. If you are the primary earner and your income is necessary to maintain the family household, your dependents may suffer financially if you die. The policy’s death benefit can fund your dependents’ needs.
Q. How much life insurance should I carry on myself?
A. Your income can be considered your family's most valuable asset because it allows you to obtain the necessities of life. Some day you may not be here to provide that income, yet the need for income may continue for those who are financially dependent upon you. Your need for life insurance and the amount required will depend on your personal and financial circumstances. If any of the following statements applies to you, you probably do need to consider life insurance:
You have a spouse. You have dependent children. You have an aging parent or disabled relative who depends on you for support. Your retirement pension and savings are not enough to insure your spouse's future against a rising cost of living. You have a sizeable estate. You own a business
Q. What is a Fixed annuity?
A. A fixed annuity is a retirement vehicle with earnings that are based on a guaranteed minimum interest rate. Fixed annuities provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries. Increases in value accumulate on a tax-deferred basis until you take a withdrawal or income payment. Income payments can be taken over the course of your life or for a set period of time. Types of fixed annuities include deferred, immediate, bonus, and Fixed-Index.
Q. What is a Fixed Index annuity?
A. With a Fixed-Index annuity you have the opportunity to allocate some or all of your contract's interest-earning potential to positive changes in external indexes. As a form of a fixed annuity, the principal and credited interest are guaranteed against lost. The interest is tax-deferred until you take a withdrawal or an income payment
If you would like more information about New Beginning Financial Group, LLC please feel free to contact us and we will be glad to answer all of your questions. Remember our goal is simple, help families achieve financial success by educating them about the financial industry.