People prepare for retirement in many ways, and the agents at the Michael Taylor Agency in Columbia, SC, explain how retirement insurance policies work. While most people think of life insurance plans as insurance created to help your loved ones financially when you die, there is also what is referred to as a retirement life insurance plan. This type of plan can help you save your retirement income while using the benefits of your whole life insurance policy.

This means that the cash value portion of your whole life insurance policy plan can help you when combined with your existing retirement savings. Let’s look a little deeper at what retirement insurance policies look like.

What Is a Life Insurance Retirement Plan (LIRP)?

A life insurance retirement plan is not designed to replace a standard retirement plan, such as your 401K or IRA plan. Usually, when someone is thinking about acquiring a life insurance retirement plan, they think more about a permanent life insurance plan. This means the two terms can be used interchangeably.

A life insurance retirement plan is a type of permanent policy with a cash value portion that accumulates like a savings account throughout the policy’s life. It will have a benefit that is paid to a beneficiary when the policyholder dies, and the plan will never expire. This means that a life insurance retirement plan will last throughout the life of the person who holds the policy.

How It Works

You pay your premiums for a life insurance retirement plan, and a portion of each of your payments is put into a savings account, which is then referred to as the policy’s cash value. This type of savings account can grow over time and is tax-deferred at a predetermined interest rate.

You can use your retirement insurance plan as an overfunded cash value, which means you can contribute more money to your policy’s cash value throughout the years before you need it. This will give you a stronger foundation to have in place when you do retire. You could also borrow against the policy’s cash value, which is basically like taking out a loan. This can help you if you make larger purchases later in your life. A withdrawal cash value is available for some emergencies, which means you can withdraw directly from the cash value savings account.

Contact Us

To start your retirement insurance policy, call upon the professionals at the Michael Taylor Agency in Columbia, SC today!

 

Life insurance is a voluntary financial instrument helpful in passing wealth down to inheritors and is not mandatory by law for Columbia, SC residents to purchase. Below are some of the more common kinds of life insurance available. 

Term Life Insurance

This type of indemnification lasts for a specific number of years, during which your beneficiaries will receive a payout if you pass away. When the term expires, your insurance is considered null and void. This coverage will often carry the lowest premiums; the typical cap is thirty years. Limits can sometimes go as high as millions of dollars, and you can choose a policy that renews annually. 

Whole Life Insurance 

A policy of this category will last your entire lifetime, paying out a death benefit to your beneficiaries. Premiums generally stay the same, are fixed, and must be current for the payout feature to be considered valid. Your knowledgeable Michael Taylor Agency representative can give you more specific information about what is included in this coverage. 

Universal Life Insurance 

This is a subset of permanent life insurance and usually has a cash value component, allowing you to take out loans against the savings you have accumulated. Your premiums can be deferred on a temporary basis while being paid from this fund, but the money does need to be paid back. Any outstanding balance is subtracted from the payout at your passing, and the savings function tends to operate on a tax-deferred basis. 

Michael Taylor Agency Can Help

Let us put together an insurance package to suit your needs. Serving the residents in and around Columbia, SC, we invite you to find out more by calling, visiting us on the web, or stopping by our office. 

At Michael Taylor Agency, serving the Columbia, SC area, one of the different types of insurance products we offer is life insurance. Life does not always remain the same, and as such, you may decide that you want to leave your life insurance policy to someone new. When this happens, you may wonder if you can change your life insurance beneficiaries or whether you need to get a new life insurance policy altogether. Read on to learn the answer to this question. 

Can You Change the Beneficiary Of Your Life Insurance Policy? 

As long as your life insurance policy has revocable beneficiaries, you can change the beneficiary on your life insurance policy. It is vital that you cannot modify a will to change the beneficiary of your life insurance policy. You have to change the beneficiary with the insurance company itself. If you do not own the life insurance policy, you will have to request that the person who owns the policy makes the request. 

How Do You Find Out If Beneficiaries Are Revocable? 

In most cases, life insurance beneficiaries are revocable. However, the beneficiary may not be revocable if the courts order you to obtain a policy and keep it in a spouse’s name. In most cases, the policy will specifically state whether the beneficiaries are revocable or not directly under the beneficiaries section. If you are unsure, an insurance agency can always read the policy and help you understand the terms of your specific policy. 

If you are looking to obtain a new life insurance policy or you are looking to change the beneficiary on an existing life insurance policy, Michael Taylor Agency, serving the greater Columbia, SC area, can help you. Call or email us to get started. 

After someone passes away, three distinct types of services can be provided: funeral, memorial, and celebration of life. It’s essential to understand the difference between a funeral, memorial, and celebration of life to make the best decision for your loved one. Michael Taylor Agency of Columbia, SC is here to help you understand these differences.

Funeral Services

People will often hold a funeral service to honor someone who has died recently. The service usually occurs shortly after the person’s death and may be held at a funeral home, church, or other location. It is usually a formal service.

Memorial

A memorial service is a ceremony to remember and honor a person who died. It is usually held after the person’s funeral but can be held anytime after death. A memorial service typically includes speeches or readings from family and friends. It is often a time for people to share memories of the person who died. Memorial services can be religious or non-religious.

Celebration of Life

A life service celebration can be held at any time after the person’s death. The purpose of the celebration of life service is for family and friends to remember the person’s life and to celebrate their legacy with music and food. It is often less formal and includes a more extensive gathering of individuals who knew the deceased.

Being Prepared

One of the most important things you can do to protect your loved ones is to purchase life insurance. If you die, life insurance provides security for your family by replacing your income and covering expenses like the cost of a funeral and outstanding debts. It can also help your family maintain their standard of living and pursue their dreams.

If you’re looking for life insurance in Columbia, SC, Michael Taylor Agency is a great option. We offer a variety of life insurance products to meet your needs, and our knowledgeable staff can help you choose the right policy for your situation.

Know what a life insurance policy covers and how much you need. Ensure the policy you choose has the right coverage to protect your family if you die. 

Next, make sure the policy covers the health conditions that could cause you to die early, such as a heart condition, if necessary. 

Finally, make sure the policy has the flexibility to adapt to changes in your life, such as family changes or career changes. Michael Taylor Agency is your pal for cover inquiries in Columbia, SC! 

What Entails Choosing the Right Life Insurance Policy 

When choosing a life insurance policy, it’s important to select a provider with a solid financial standing and a plan with the coverage you need at a price you can afford. You’ll also want to ensure the policy fits your needs throughout the duration of the policy. 

Some people buy life insurance to provide a source of income for their families if they die. Other people purchase life insurance to pay for final expenses, such as funeral costs or mortgage balances. 

You may want a policy with a guaranteed pre-paid alternative. If you are no longer working, you may want to purchase a policy that offers a guaranteed term option. You can also consider other factors when choosing a policy, such as fixed or variable rate, the coverage you need, and how long you want the policy to last. 

While this is true in some cases, it’s also important to have a policy in place if you have financial obligations that your estate can’t cover. For example, most people have a mortgage or other debts that can’t be paid from the grave. 

The amount of protection that you need is another essential aspect. If you have a family that depends on your income, you will require more coverage than a person who’s financially independent and has no dependents. 

Parting Thoughts 

A combination of whole and term life insurance is typically recommended for the majority. Term insurance is the most affordable type of life insurance, and it’s a good option for most people since it’s intended to be temporary coverage. 

Whole life insurance is much more expensive but can have advantages for some people, such as a guaranteed rate of return on your investment. 

Most people will benefit most from a combination of both life insurance policies. Are you stuck in Columbia, SC? Don’t hesitate to seek help with Michael Taylor Agency.

Michael Taylor Agency is here to serve the insurance needs of the greater Columbia, SC community. If you want to make sure that your family doesn’t have to worry about your final expenses, call us today. We can help you find a policy that can help defray the cost of these expenses. 

Cover your burial expenses with a life insurance policy

Access to a death benefit can make dealing with the loss of a loved one a lot easier to deal with. There are no claims to file. Thus, the benefit is available to cover any funeral or burial costs without coming out of pocket to cover the expenses. Even if you have a significant estate with sufficient funds to cover these expenses, they may not always be readily available.

Many estates can languish in the probate process before they are settled. This means that it is up to you and your family to find the funds necessary to cover any immediate expenses related to your death. In some instances, this can be an undue burden that creates a lot of stress for someone who is already mourning the loss of a loved one.

Having a life insurance policy in place that will cover these expenses will allow your family to take care of immediate financial needs during their initial bereavement period. Fortunately, you can prepare your family for a smooth transition that takes care of their immediate needs upon your passing.

Call or stop by today!

Columbia, SC area residents can count on the folks at Michael Taylor Agency for all of their insurance needs. Call or stop by our office today if you want to make sure that your loved ones don’t have to worry about your end-of-life expenses.

Life insurance is something you want to get right. You need to have the right amount and the correct type of insurance. To get to that point, you need to ask yourself some questions. Once you have the answers, talking to your local independent insurance agent can help you get the right amount. In Columbia, SC, you can count on the Michael Taylor Agency to provide you with the kind of service and customization you want. 

What do you want from your life insurance?

Are you purchasing your life insurance strictly for the death benefit?  If so, then term life insurance will provide what you need. If you want to end up with life insurance earning dividends and having a cash value you can borrow against, then whole life insurance may be more than what you have in mind. 

Who depends on your income?

Of all the things that need to be considered, who depends on you is one of the most important. If you support your aging parents, that is much different from having young children who are counting on you. 

How long will you need to supply support?  

Depending on the age of your dependents, you may need to supply support for a very long time. That means having a longer term on your term insurance. 

What is your income?

Your income affects the amount of life insurance you need to have. You are replacing your income with your dependents. You need to multiply your yearly income by the number of years you need to provide for. If you don’t need to supply all the amount they need to survive for the year, consider that. 

Contact the Michael Taylor Agency in Columbia, SC for all your life insurance needs. We are happy to give you the personalized service you deserve.

 

When the time comes to think about life insurance, you can count on the Michael Taylor Agency in Columbia, SC  to be there to help you to get through the mounds of data and information to find out what amount is right for you. As independent insurance agents, we work for you, not one insurance company, and we can look through multiple carriers to get the right policy for your situation. 

Life insurance is not one size fits all. It needs to be customized to your personal needs and finances. Your annual income is a major determining factor in how much life insurance is enough for you. Providing for dependents who are used to having a breadwinner with a $50,000 income is different from those who survive someone who makes $150,000. 

First, ask yourself who depends on your income to survive? Do you have children? What are their ages? Does your spouse have an income separate from yours? All of these are questions you need to answer to develop an educated solution to how much life insurance is enough. 

Keep in mind that your spouse may not be able to work outside the home if you pass away. One parent raising children is much different from having two, and grief must be considered. Ensuring they have the money they need to take some recovery time will make the whole process much more manageable. 

How young are your children? If they are very young, you will need to care for them for much longer than if they are teens. Do you want to make sure they have enough money for college? Experts suggest between 7-10 years of your income is a figure to shoot for with your life insurance. 

Contact Michael Taylor Agency in Columbia, SC if you have life insurance needs and questions.

 

Your Health and Wellness Options with Retirement Insurance

You may not have come across the phrase retirement insurance before. You probably do know what it is, and you’re probably pretty well versed in it if you’re of retirement age. Retirement insurance refers to retiree insurance, the name that the Medicare program uses to refer to its medical coverage.

Medicare Basics

You gain the option to sign up for retirement insurance, aka Medicare, at the age of 65 years. You can sign up for it earlier than that if you develop Lou Gehrig’s disease (amyotrophic lateral sclerosis or ALS), permanent kidney failure, or have been diagnosed with certain disabilities. This type of medical insurance provides coverage that’s free for your hospitalization costs.

You can add to your Medicare coverage if you want to do so, directly from the government or from Columbia SC’s Michael Taylor Agency. You automatically qualify for Part A coverage for hospitalization, and it remains free. You have to pay a monthly premium for Parts B, C, and/or D though. Part B covers doctors’ visits and preventative services. You could choose Part C, which includes parts A, B, and D. Part D covers your prescriptions. You might also want Medigap insurance, which covers copays, coinsurance, and deductibles.

Stop-Loss Coverage

You might still have insurance coverage from your employer after you retire. The company policy might only provide stop-loss coverage, which means the employer insurance only starts paying your out-of-pocket costs once they reach the maximum amount. Essentially, the employer-provided insurance includes a pre-determined amount of money that, once you’ve paid, the insurance policy it provides takes care of. That means that your Medicare A covers all of your hospitalizations, but you might cover all of your medical visits and your at-home care up to $10,000, the point at which your employer’s stop-loss plan triggers and pays the rest of the medical costs.

While you can only obtain Medicare A from the US government, you can obtain the other types of coverage from Michael Taylor Agency, serving Columbia, SC. Contact us today to obtain your retirement coverage.

While it’s good practice to get into the habit of reviewing your coverage routinely, every year or so, there are other times when it pays to review your needs and discuss your options with a professional. 

When You Buy a Home

Your debt load has increased. You want to ensure that your life insurance can pay off existing debts so you don’t burden your family with them after death. 

When Your Income Increases

A pay raise is often cited as a moment to review your life insurance policy. If your policy includes income protection, a review after a change of income is critical as your benefit amount and premium cost are linked to your income. 

When Your Family Expands

New family means new potential beneficiaries. It might also be worthwhile to reassess if you have enough insurance for your changing obligations. 

When You Start a Business

Not only has your income likely changed, but your debt load will also have likely increased as well. You may have additional considerations as a business owner that can impact your life insurance needs. 

When You Become the Sole Provider

Your obligations to your family increase when they are reliant on your income to maintain their existence. You may wish to discuss your situation to ensure you are carrying enough life insurance to protect your family should something happen to you. 

When You’ve Gotten Healthier

Life insurance companies use what’s called ‘premium loadings’ to account for personal risk factors. Examples of risk factors that might increase your premiums due to this practice include:

• Smoking.
• Having a high Body Mass Index (BMI).
• Having a risky occupation.
• Having underlying medical conditions. 

Serving Columbia, SC

Call or stop by the Michael Taylor Agency when you are ready to discuss your life insurance options. Our friendly agents are happy to help you understand what’s available and help you make the best choice for your needs.