But times change and new “variable” financial engines, seemingly more exciting, were built.  The original perfect engine, perhaps now a bit boring, had to be improved to keep pace. But alas, as things continued to change (technology, expectations, and the economy) the “new” ones ran into problems.  Our original engine remained perfect, but still boring.

As people stopped embracing the new ones, even newer, more exciting, and riskier engines are built. The original is again forced to adjust with some updated and risk-free features of its own if it wants to retain the description of “still perfect.”

After a few more repetitions of this cycle, and more challenging issues to be dealt with such as changing tax laws, de-regulation, new regulations, and an economic meltdown that ultimately brings the risk-reward “benefits” of the newer more exotic engines into question, the enlightened begin to go back and examine the original (and still perfect) Tax-Free Retirement Engine which has retained all its benefits with no negative impact from the new regulatory rules, tax laws, and benefit distribution changes. 

1. With all the issues that caused problems for other financial engines, and their consumer passengers, the original Tax-Free Engine didn’t breakdown.  It didn’t go “backwards.” It didn’t care which elected chief engineer or officials were in charge.  There will be no impact on our engine if income taxes go up, or estate tax laws change. The NEW Tax-Free Engine is not influenced by negative change or risky decisions. It is impervious to recessions.  You will never loose money no matter what the market does, not ever!  You participate in the gain if the market goes up, but you will never loose the, even in down market years.  The money will grow tax-deferred and can be withdrawn tax-free.  You are always in control.

The Tax-Free Engine was called permanent cash value life insurance. It was great back then, but with the NEW  no risk “indexed” engine and “living benefit” feature in the event of critical, chronic or terminal illness, it is even better now.  It is still the perfect tax-free retirement engine…only more so!

Written by Richard Drazien for the exclusive use of the Alliance Group

April 2012

Asking or answering what if questions can sometimes be fun. For example, what would you do if you won several millions of dollars in the lottery? Coming up with an answer is a more thought provoking exercise when the question addresses your families emotional and financial peace of mind for surviving the “what if” crisis with planning that can be implemented before the “what if” ever happens.

Most clients have some form of life insurance to provide their loved ones with enough funds to continue on after they have died. It is no surprise, therefore, that most think if it as death insurance. We believe that if life insurance is going to also help you and your family survive and thrive while you are living, and life happens, it must contain “LIVING BENEFITS”. Does your coverage include that feature?

The statistical evidence is staggering. Virtually everyone reading this article knows of someone who has suffered a debilitating chronic illness that requires help in performing the basic activities of daily living, or has suffered a critical illness such as stroke, heart attack or a diagnosis of cancer. Living Benefits allows you access to a portion of the policy face amount (death benefit) while you are living, not after you’re dead.

Bills don’t stop because you are seriously ill. They keep on coming and family income may have decreased dramatically or stopped altogether. You may need money NOW to avoid bankruptcy; to stay in your home and avoid foreclosure; to continue your children’s education; to pay high medical bills that are not covered by your health insurance plan (assuming you have one) or the alternative care that is recommended as the best treatment to save your life, but costs more than you could possibly afford.

If that happened to you or someone in your family, what would you do? How would you survive? How would you provide the security and peace of mind you are seeking, not just after death, but while you are living life, and before that what if ever occurs.

What if a life insurance policy was developed that INCLUDED access to the death benefit if money is needed to help you and your family survive the financial and emotional impact of dealing with chronic, critical, or terminal illness,

1. WHILE YOU ARE LIVING
2. With NO ADDITIONAL PREMIUM CHARGE
3. With NO RESTRICTIONS ON HOW TO USE THE MONEY

If it is going to be called “life insurance,” it must help you and your family to achieve financial peace of mind while you are living. Since it is a financial burden for many to purchase three different policies to provide the amount of life insurance needed; long term-care insurance; and another for critical illness coverage, doesn’t it seem reasonable to cover all three needs in one affordable contract that included living benefits.

At the Alliance Group, Thinking Differently is a Way of Life!

TO LEARN MORE ABOUT LIVING BENEFITS, CLICK HERE!

FOR A FREE FINANCIAL REVIEW, CLICK HERE!

]]> http://anallianceforlife.com/2012/02/what-if/feed/ 0 http://anallianceforlife.com/2011/12/steve-jobs-legacy-and-the-alliance-story/ http://anallianceforlife.com/2011/12/steve-jobs-legacy-and-the-alliance-story/#comments Wed, 14 Dec 2011 20:40:02 +0000 Alliance Group http://anallianceforlife.com/?p=517 I’ve been doing a good deal of thinking about the “storied” success of Apple, Steve Jobs legacy, and how it relates to our industry and the Alliance Group’s purpose and belief.

Steve Jobs was not a computer software programmer. He dropped out of Reed College after one semester and cofounded Apple in 1976. I suspect he quickly realized that everyone in the personal computer industry was designing a product that looked similar and pretty much did the same thing in the same way. All PC’s worked on the same operating system with similar keyboards and “buttons. Perhaps the consumer wants something different, he thought; something more attractive to look at; something more user friendly and simpler to work; something faster and lighter. In other word something different that reflected what the buyer really desired. He was a visionary.

He may have concluded that if everyone is doing and creating the exact same thing, Apple is going to think differently. I imagine him thinking we’ll develop product that the consumer really wants, give it a cool name (Mac) and promote it with an advertising campaign that speaks to their imagination and dreams. That is how we will distinguish ourselves from all the others.

When asked “what” business Apple was in, I suspect he did not merely say “we make computers with some interesting features.” I’m sure he turned the question from “what they did” to WHY they did it. He just sensed that the customer wanted something special, something that was new. He just thought differently. Jobs knew what their customer desired, and why they would stand on line for hours to be the first to buy one.

I believe that there are similarities to how Alliance has approached the life insurance industry, the products people really want, and the peace of mind they are seeking. There are hundreds of companies marketing products that are in many ways the same. The primary and sometimes only benefit is delivered when the customer dies. Most consumers see “life” insurance, especially Term Life, as simply providing a death benefit. It’s death insurance allowing you to leave a legacy after you’re gone. There is nothing wrong with that. But Steve Jobs might have concluded that if you are going to call it LIFE insurance you might want to include actual LIVING BENEFITS that reflect what occurs when life actually happens such as prolonged chronic and critical illness; that access to the “death benefit” may be more urgently needed NOW to possibly extend or save the insured’s life and the family’s well-being.

We all know such things happen, so Alliance always thinks differently when designing proprietary solutions that provide the peace of mind and ability to survive many of the financial and emotional challenges faced on life’s journey. Like Apple, it is the WHY we do what we do that distinguishes us from the others.

At the Alliance Group “living benefits” and thinking differently are a way of life.

It’s that time again…the holidays are quickly creeping up on us. Are you prepared? Have you gotten all of your shopping done? Can’t think of what to get the people who seem to have everything? How about your children or grandchildren…got them squared away?

If not, here’s a suggestion: Life Insurance.

Giving a gift of permanent life insurance allows parents or grandparents to provide the foundation for financial stability and economic freedom that can help children reach their financial goals at the important stages of their lives.

Forget the video games for the young kids or fancy gadgets for the teenagers…and give them something that will continue to work for them – not something that will be obsolete within 6 months. Lately, the trend has pointed to financially savvy parents and grandparents giving a permanent life insurance policy as a birthday gift, wedding or graduation gift, or for any other occasion that makes sense.

Sure, a gift of life insurance may not provide the immediate “wow” factor. However, the value will outlast any new toy, video game system, iPad or even a brand new car.  As a matter of fact, how many presents would warrant two thank you notes?? Not only do you get a thank you when you provide the gift, but think about the reaction 15 years down the road when the recipient begins to recognize the lasting value and potential growth of their policy. A smart, well-structured permanent policy may enable them to utilize some of the cash value for certain expenses during their life time when needed most…college tuition, down-payment on their 1^st house, purchasing a wedding ring, etc.

Additionally, life insurance can be structured as a gift that “keeps on giving”. Every time the premium is paid, the cash value of the policy will grow. Also, the cash value of the policy grows on a tax-deferred basis – and ultimately, when the policy is used for its original purpose, the beneficiaries will receive the money tax-free, as death-benefit proceeds are not taxed as income.

Unlike other gifts, don’t wait for a sale…

Life Insurance premiums are based on current age, so whenever you buy will be the best time to buy, as the cost will NEVER be lower than it is right now. Additionally, buying right away locks in a premium based on the recipient’s current age and guarantees future health issues will not get in the way of insurability.

Are you wondering how to make it happen? EASY. The first step would be to call us. A licensed representative will be able to assist you in making the right choices when selecting the type of policy, as well as other items such as optional policy riders that may be (or may not be) beneficial.

So, when you are pondering where to spend your hard earned money on your kids or grandkids, think about a permanent life insurance policy.  Think about the benefits and satisfaction of leaving a lasting legacy that will continue to “give” for the whole life of your loved ones…

For most young people, the idea of retirement is so remote that it never really crosses their minds; neither does any other aspect of financial planning. People typically wait until they are married or home owners to buy life insurance and sometimes by the time they do they may have already acquired a health issue and are surprised at the cost of the insurance and wish they had started sooner. It’s the same thing with retirement planning. Many people wait until they are “settled” in their careers and after a few jobs and a few layoffs have nothing to show for the time they worked. Or they simply put it off and use the money they could be saving for the future because they have to have their dream car now. They get into leases or payments that take up a big chunk of their monthly net income leaving very little for savings. Regardless of the reasons, it usually hits a worker or business owner later in life that they wish they had started sooner.

When looking at what will be needed to be able to retire and all the factors that make the prospect of having enough saved upon retirement difficult at best, it is imperative that a young adult take the idea of putting money away for retirement seriously. If that means spending less on weekends out each month with friends or not buying that latte at Starbucks, not buying a brand new car (a bad financial move that will be discussed in another article at another time) or avoiding other expenditures which will put undue pressure on financial resources, then the smart money is on savings.

The proof is always in the pudding. Suppose a 23-year-old woman just starting out in life, living at home with the gracious consent of her parents, gets a career starting position with an online news source for her community. Let’s also suppose she takes the advice of a neighbor, a financial planner, to start saving for retirement now. Let’s assume this same person puts away approximately $250 per month every month until she is 65 — never increasing the amount but steadily invests. Also let’s assume over the 40 years she is putting money away she averages a seven percent rate of return on the investments she makes. By the time she is 65 years old she will have saved approximately $1 million.

If she waited until age 35 when she is more settled in her career and on her own (perhaps with a family of her own) and starts to put away money with the same goal of $1 million when she’s 65, then the amount that she would have to put away would be $555 per month. Now with mortgage and bills and kids and dogs and cats and all the other expenses of the real world, it may be difficult to put aside that much money, so a lower amount may only be able to be saved and the $1 million goal may never be reached.

What if life simply gets in the way and our 23-year-old waits until she has a higher paying position and now she starts saving for her retirement at age 45? Now we are looking at having to put away $1035 per month, which may be even harder to do while also saving for college or paying down a bigger mortgage, a car payment and all the other expenses that a middle class family faces each year. What if she gets laid off or takes time off from her career? Then the catch-up is going to be even greater and more costly. But if our intrepid young lady starts now then as she ages additional amounts she invests for herself will assist her in putting away more than her $1 million goal.

But there are other advantages as well. When younger and just starting to put money aside for long term goals such as retirement, a more aggressive investment program can be used which will provide the opportunity for higher potential gains. The later in life a person starts investing, the less risk they are apt to take and therefore the lower potential return.

A younger investor will also get the most out of alternatives to traditional retirement savings. For instance, building up a million dollars in a Roth IRA would provide a great source of TAX FREE income in retirement. In addition, combining retirement planning with life insurance, a person can purchase an inexpensive insurance plan which will build life insurance and cash value which can go toward tax free supplemental retirement income as well as a much lower cost of insurance.

It’s a shame these days that more adults don’t talk with their children about these matters and like many of us learn the lessons of finances too late. Wouldn’t we all be a bit more secure if we started our planning for our financial lives in the beginning rather than in the middle? The advice of a good planner can help steer a young investor toward suitable investments which can meet the goals and objectives of someone just starting out and keep them on track for the long haul.

What often comes to mind when thinking about life insurance is that you can use it to pay final expenses. You’ve seen the commercials: Funeral expenses, burial costs and medical bills can add up to a hefty amount. The last thing you want is for your loved ones to shoulder this extra burden. Life insurance can be used to plan for these final expenses. Permanent life insurance is available in various amounts, so you can pick a death benefit that meets your needs.

But there are other considerations to keep in mind. You can use life insurance …

As mortgage protection. Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as mortgage protection. Think about it: You don’t want the person you live with to be homeless if you die unexpectedly, do you? Term life insurance can be used to pay off an outstanding mortgage balance. Just select a term that matches the length of your mortgage payment period. Some companies even offer decreasing term insurance, which means the death benefit decreases along with your mortgage balance.

For income replacement. You and your significant other may have planned for a future based on two incomes, but what if one of you passes away unexpectedly? Life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.

For college funding. Yeah, I know. You don’t have kids, so this one only applies if you do or if you have grandchildren you want to help. Have you seen the tuition rates lately? Life insurance can help fund a college education. If you die, the death benefit may be invested and potentially grow to the needed amount by the time your children or grandchildren reach college age. If you have permanent policies, the cash value may be used to help fund tuition costs. Feel better knowing that you helped prepare for their future—even if you are not there to see it.

There are also a few provisions—additional benefits, if you will—that you may not be aware of.

Probate protection. If the beneficiary of a life insurance policy is a named person and not your estate, the death benefit is free from probate costs.

Incontestability. After the policy has been in force for two years, it becomes incontestable, meaning that the policy cannot be revoked, unless it was fraudulently obtained.

Free from the claims of creditors. In many states, the cash values of the life insurance policy are free from the claims of creditors if the policy is personally owned.

So, are you starting to see the need for life insurance? You will call your agent now, right? Don’t put it off! Remember, the younger you are when you get insurance, the lower the cost and the easier it is to get approved.

Article by: Marvin H. Feldman – President, CEO Life Foundation, Sept. 13, 2011

There’s a crisis in this country of people being uninsured, or under-insured. The majority of adult Americans do not own an individual life insurance policy, according to LIMRA International. I place a bit of the blame on the industry itself, which may have lost sight of the real reason people buy life insurance. Some agents or advisors will sit down and talk a blue streak about life insurance in terms of numbers and percentages, and then whip out fancy illustration charts to explain to you why it’s an important financial instrument to own.

While those numbers matter, there really is only one very basic reason to own life insurance: because you love people and want to make sure that they are taken care of financially if the worst were to happen to you.

The bottom line: You buy life insurance to provide financial protection for your family and, as the case may be, the business you have worked hard to create.

What if something were to happen to you? Don’t you want your family to be able to continue living in your home and enjoying the life they’re accustomed to? And what about your children, don’t you want them to have the chance to go to college? If you are at or near retirement, don’t you want your spouse to have income to live on in his or her old age? And if you own a business, don’t you want your partners or successor to continue to run a healthy business, not one financially crippled by the loss of a key person?

It’s time to make sure that you are properly insured.

Life insurance can do some pretty amazing things for people. It can buy loved ones time to grieve. It can pay off debts and loans, providing surviving family members with the chance to move on with a clean slate. It can keep families in their homes and pre-fund a child’s college education. It can keep a family business in the family. It can provide a stream of income for a family to live on for a period of time. Life insurance can do all of these wonderful things for your family…there’s just one small catch. You need to own life insurance.

There’s a growing crisis of too many Americans not having adequate life insurance protection. According to the industry research group LIMRA, 30 percent of US households have no life insurance whatsoever. Today there are 11 million fewer American households covered by life insurance compared with six years ago.

What if you were suddenly gone and your family had to manage on their own? When was the last time you did the math to make sure your loved ones would be OK financially? Have you checked with your employer to find out what kind of life insurance benefit you have through work and whether you have the option to increase your coverage? When was the last time you had your life insurance needs reviewed by an insurance professional?

Some choices are superficial:

Do I want to buy the red, tan, silver or white Chevy?

Some are important:

Do I want to change jobs and relocate the family?

If the market tanks again like it did a couple of years ago, how do I prevent any loss of money on the downside, and participate in the upside? What are my choices, if any?

Some choices are downright critical:

Do I have the heart surgery or cancer treatment being recommended or seek an alternative, a second opinion or option? How would I pay for it?

I’ve become critically ill and no longer have health insurance (or the coverage I have won’t pay for the treatment I need), I’ve lost my job, bills are piling up and I’ve run out of money. I’m staring foreclosure and bankruptcy in the face. I have life insurance but need money now, not after I’m dead. I’d like a choice that gives me a shot at living, finding a cure, sending the kids to college, keeping the house and avoiding bankruptcy? What could I have done? Did I have any choices?

My spouse is terminally ill and the doctors gives him/her six months to live. Our dream was to visit Paris or Italy or the Holy Land. We both have life insurance, but we’re short on money and I want to fulfill our dream. If only I could access some funds, my choice in a heartbeat would be to take the trip now while my spouse could still enjoy it.

Choices, choices, choices! That’s what we ALL want.

Not just a product, but a CHOICE.

Original Article by Rick Drazien – Living Edge, September 2011