Do You Have the RIGHT Type of Insurance?

Friday, March 22nd, 2013

When speaking to brother knights they usually tell me I have “enough life insurance.” My response to them is, “Why do you have life insurance?” Of course this always brings strange looks. “You are an insurance agent and you are asking why I have life insurance; shouldn’t you be telling me I need more life insurance?”

Having the right amount of life insurance is sometimes not as important as having the right type of life insurance. Members who have term insurance may not realize that most term insurance ends at age 70. Many of you will live beyond age 70. In fact, it is less than 1 out of 100 term policies that ever actually pay a death claim. Now at age 70 you realize that you need whole life insurance which has a guaranteed death benefit until age 120. Plus the death benefit is paid income tax free to your beneficiaries.

Younger members should be looking for whole life insurance for the same reason. You can learn from our experienced brother knights and buy whole life insurance now to “lock in” at a much lower rate. Our whole life insurance pays dividends which increases the death benefit, and has a cash value that increases as well (if you continue to pay your premiums).  The cash value can be accessed for such needs as emergencies, funding education, or to supplement your retirement income.

You may be one of the members who bought universal life or variable life, which is sometimes sold as “whole life insurance and an investment.” However the actual cost of insurance is increasing while your premiums remain the same. As the cost grows larger than the premium, they deduct the difference from your cash value until the money runs out and the policy lapses. To protect my brother knights, I ask that ALL OF YOU request a 20 year projection of future values from your other insurance companies. When you get it call me so I can give you expert advice and help decide what options are best for you. Don’t just assume you have a whole life policy or that all insurances are the same.

Bill Matthews

Four Parts of Retirement – Phase FOUR: “CARE”

Monday, January 28th, 2013

Okay, if you’ve been following along in my articles, you’ve read about the first phases that lead to retirement. Protection and accumulation of savings are the first time, followed by deaccumulation of those funds while making them last.

The final phase is care. At some point, at some age (hopefully a very advanced age), you will need to slow down. You will no longer be able to care for yourself. At that point, you will need to have assets available to provide much needed care, either at home or in a care facility.

As you probably know, the cost of care continues to rise. I cannot quote you a number here (I could give you specific details in a face-to-face meeting), but the nationwide average grows by leaps and bounds. How do you plan to cover these costs? Government programs might not be available, or might require you to spend down your assets leaving your family with little. The best way to handle the cost of care in the future is to plan ahead today. The Knights of Columbus offers long-term care insurance that can cover at home or facility care costs. And our product is backed by the financial strength of the Order. It has many benefits and our premiums are competitive with any other company.

The Knights of Columbus – the organization you trust – is in a position to help you with every phase. Life insurance, disability insurance, guaranteed retirement plans that turn into guaranteed income streams when you retire, and long term care. There is no reason to go elsewhere as you prepare for the four phases!

Contact me today to schedule a meeting.

Bill Matthews

Four Parts of Retirement – Phase THREE: “De-Accumulation”

Saturday, January 26th, 2013

My previous two articles discussed important steps that lead to retirement. But what happens once you reach that goal? You’ve got free time to pursue your interests, visit friends and family and relax. It’s a beautiful thing indeed.

You’ve now entered the de-accumulation phase. You will start to spend down the assets you have accumulated during your working years. Remember: a 60-year-old man has a 20% chance of making it to 95! A 60-year-old woman has a 30% chance. There is a 40% chance that at least one member of a married 60-year-old couple will make it to 95. That’s a long time to live off of accumulated cash while you don’t work. Save, save, save, so you will be able to de-accumulate.

As a Knight, you have access to a product that is designed to make saving safe and easy. Our annuity is designed to provide guaranteed long-term security. Consistent and disciplined savings placed into this annuity over time can provide income at retirement that you cannot outlive. With that guarantee comes the fact that no one has ever lost money put in a Knights of Columbus annuity (remember, absolute safety of principal) and consider the value you are getting.

Contributing money to an annuity can also have positive tax implications (always check with your tax professional on these matters). Our annuities offer a competitive interest rate, consistent with our primary goal of absolute safety of principal.

Take some time to meet with me and I will explain fully the benefits of selecting our annuity along with the benefits of our top-rated life insurance, disability income and long term care insurance plans. As you consider options as you proceed toward retirement, think about the one thing guaranteed to help you and open a Knights of Columbus annuity.

Bill Matthews
Phone 828-371-2509

Four Parts of Retirement – Phase TWO: “Accumulation”

Saturday, December 15th, 2012

In a previous article, I discussed protection and how Knights of Columbus products can provide it for you and your wife in your retirement years. The next phase of retirement is accumulation of cash.

Those life insurance policies you purchased, if they are permanent plans, carry a savings element that helps with accumulation of wealth. Another good option is a Knights of Columbus retirement plan or annuity with a guaranteed interest rate. After basic protection, you spend your working life preparing not to work … for the day the paychecks stop. Factor in here also your pensions, government benefits and other savings you’ve acquired over the years.

Some experts will tell you that you should prepare for retirement with a plan that calls for 70% of the income you had pre-retirement. I think that falls woefully short. Plan on the 90% range. Consider this: what are you giving up that translates to 30% of your income? You still have to eat, you will travel more (going to see the grandchildren), taxes need to be paid, and on and on. Be careful of that 70% arbitrary rule.

I can help you build a plan to reach your goals. Contact me today to learn more.
Bill Matthews

Four Parts of Retirement: Phase One

Wednesday, November 28th, 2012

In the next four articles, I would like to discuss a goal that’s on many workers’ radar: Retirement. To some, retirement is the pot of gold at the end of the rainbow or the reward after a long career. It’s a time to relax, take up a hobby and enjoy life. Whether retirement is just around the next corner or if you have another 30 years to go, it’s never too soon or too late to start planning or revise that plan.

Some experts suggest that there are four phases of retirement: protection, accumulation, income de-accumulation and care. In this article, I will tackle protection.

Protection is the base element of any well-founded financial plan; the base of the pyramid, for example. Without basic protection against premature death or the inability to earn income due to disability, the remainder of the pyramid collapses. If you own mutual funds and die without life insurance, those funds will be needed to pay final expenses (collapsing), perhaps at the most inopportune time (after a market correction). If you own mutual funds and lose your ability to earn income due to disability and are without paycheck protection, those funds will be needed in order to pay living expenses (collapsing), perhaps at the most inopportune time (is there ever an opportune time?).

So, basic protection is a must. The good thing is that this protection is offered by the Knights of Columbus. Our whole life products and disability income insurance are designed with this goal in mind. For example, our Life Paid Up at 65 plan is perfect for this purpose because premium payments end right when retirement is upon you. There are many other options that I can discuss with you that will fit your needs and your budget.

A newer addition to our product portfolio, disability income insurance, protects your most valuable asset; your ability to work and earn money. Plans can be customized and are available to cover many professions, from farmers to lawyers.

Once you’ve established the proper protection, the next phase is accumulation of cash, which I will discuss in a future article.

Contact me to learn more.

Bill Matthews
Phone 828-371-2509
Email Ralph.Matthews@KofC.Org