Under the terms of an annuity, an individual agrees to make regular payments to an organization, usually a life insurance company. The funds are invested and provide an income stream back to the individual, usually during retirement years.

Earnings on annuity investments are not taxable until the money is withdrawn. There are no limits on the amount of money that can be placed in an annuity, and the minimum withdrawal requirements are more liberal than many other retirement instruments.

There are many different types of annuities. We understand them all, and we can help you determine if an annuity is a good fit with your retirement strategy.

Many financial planners view life insurance as the cornerstone of sound financial planning. It is a tool that can play the following important roles:

• Replace income for dependents
• Pay final expenses
• Create a legacy for your heirs
• Make charitable contributions
• Create a source of savings

  There are two major types of life insurance—term and permanent.

Term life insurance is the simplest form of life insurance since it pays only if death occurs during the term of the policy. It is available in terms from 5 to 30 years.

Permanent life insurance includes several categories: traditional whole life, universal life, variable life, and variable universal life.

A traditional whole life policy can be designed so that both the death benefit and the premium stay the same throughout the life of the policy. It also develops a cash value and may pay dividends or interest which can be used to reduce the cost or increase the benefit.

A universal life policy offers more flexibility. Under certain circumstances, the policyholder can increase the death benefit during the term of the policy.

A variable life insurance policy includes a savings account that the policyholder can invest in a variety of financial instruments. Since the performance of the investments directly affects the policy’s cash value and death benefit, there is more risk associated with this policy.

A variable universal life policy combines the features of the individual variable and universal life policies. Policyholders have the ability to adjust the premium and death benefit that is characteristic of universal life. They also have the investment risks associated with variable life policies.

Disability insurance replaces lost income when a covered individual is unable to work because of an accident or illness. Depending on the circumstances, the coverage supplements health insurance, workers compensation insurance, auto insurance, or, in some cases, even Social Security benefits.

There are two types of disability policies: short-term and long-term. Short-term policies have a waiting period of 14 days or less, with a maximum benefit period that is usually no longer than two years. Long-term policies have a longer waiting period, sometimes as much as several months. However, the maximum benefit period is much longer as well.

The cost of disability insurance is based on age, sex, medical history, and occupation, as well as the amount of potential lost income you are trying to protect. In general, the less risk involved in an occupation, the lower the premium.

Many employers offer some type of disability insurance. However, since laws vary from state to state, and some companies offer more generous plans than others, it is important for workers to know the coverage their company provides. Many group plans do not cover bonus or incentive compensation. Many have a monthly cap, and benefits are often taxable if the employer pays the premium. Group long-term disability is a good start, but might not meet individual needs.

A variable universal life policy combines the features of the individual variable and universal life policies. Policyholders have the ability to adjust the premium and death benefit that is characteristic of universal life. They also have the investment risks associated with variable life policies.

Long-term care insurance helps offset the cost of assistance with the activities of daily life such as meal preparation, bathing, or dressing. The coverage is often thought of as care for the elderly. However, the insurance can be used by anyone who is impaired due to mental or physical illness, or injury. Nor is the care always long-term. Some people may need services for a few months or less.

Assistance with the activities of daily life can be provided in a nursing home, an adult day-care center, an assisted-living facility, or even at home.

As with disability insurance, long-term care insurance presents some difficult decisions – to buy or not to buy, if you decide to buy, when is the best time, and what features are likely to be most important.

When choosing a long-term care insurer, the stability of that carrier is critically important. As an independent agent, we have relationships with carriers that are fully committed to this market.

In organizational development, succession planning is the process of identifying and preparing employees to replace key leaders in the company.

From a risk management perspective, succession planning provides funds to keep the business running if a key person is lost. A formal plan is critical and adequate funding can be used in a variety of ways to keep the business on track while a suitable replacement is found or developed.