People’s Financial Advisor Assess Your Need for Life Insurance
Technology enables middle-income Americans to benefit from objective personalized assessment of Life Insurance needs.
Buena Vista, CO, February 27, 2010 --(PR.com)-- People’s Financial Advisor (PFA) www.peoplesfinancialadvisor.com, a leading provider of online fiduciary financial planning services, today unveiled it includes a Life Insurance Needs Evaluation in its $99 Financial Plan.
Mr. Robert Schumann, Chief Advice Officer at People’s Financial Advisor explains:“The primary purpose of life insurance is to protect dependents against the loss of income caused by the premature death of the wage earner. If you do not have dependents, you probably do not need life insurance. Life insurance buys time to build the portfolio. The period of insurance coverage should match the length of time needed to build the portfolio.”
Permanent vs. Term
Industry data shows that 80% of all “permanent” or cash value insurance is surrendered or lapsed for insufficient premium. In other words, in 80% of all cases where permanent insurance was sold, term insurance would have been more suitable. Every time an insurance agent persuades you to replace one permanent policy with another, the transaction itself is a tacit acknowledgement that you should have had term insurance in the first place.
Cash value life insurance is very expensive compared to level term and often causes young families to be underinsured. Usually for the same premium, a young wage earner can purchase 3-6 times as much term as permanent insurance.
Mr. Schumann added: “Most people should not be putting money into cash value life insurance or annuities until they are maximizing their contributions to the Qualified Retirement Plans and IRAs and are in a very high tax bracket. Premiums paid into cash value life insurance or annuities are not tax deductible. Investments in cash value life insurance and annuities are not protected from creditors by ERISA. Investment gains in cash value life insurance and annuities are subject to higher income tax rates instead of lower capital gains rates.”
Mr. David Ron, Co-Founder & CEO of People’s Financial Advisor said: “We calculate the amount of Life Insurance you should have considering the size of your portfolio, the income to be replaced and the number of years it should last. We don’t sell insurance - we only care about our client’s actions and focused on increasing their net worth.”
About People’s Financial Advisor
People’s Financial Advisor is a leading provider of fiduciary financial planning services. Designed to help Middle America gain financial independence and peace of mind, convenient online services are balanced with interactive advisor consultations. People’s Financial Advisor offers a robust portfolio of services based on a proven behavioral finance approach called the Cambridge Methodology. Services include a free online assessment, online financial planning development tools and advice dealing with all aspects of financial decisions, opportunities and options. For more information please visit www.peoplesfinancialadvisor.com.
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Mr. Robert Schumann, Chief Advice Officer at People’s Financial Advisor explains:“The primary purpose of life insurance is to protect dependents against the loss of income caused by the premature death of the wage earner. If you do not have dependents, you probably do not need life insurance. Life insurance buys time to build the portfolio. The period of insurance coverage should match the length of time needed to build the portfolio.”
Permanent vs. Term
Industry data shows that 80% of all “permanent” or cash value insurance is surrendered or lapsed for insufficient premium. In other words, in 80% of all cases where permanent insurance was sold, term insurance would have been more suitable. Every time an insurance agent persuades you to replace one permanent policy with another, the transaction itself is a tacit acknowledgement that you should have had term insurance in the first place.
Cash value life insurance is very expensive compared to level term and often causes young families to be underinsured. Usually for the same premium, a young wage earner can purchase 3-6 times as much term as permanent insurance.
Mr. Schumann added: “Most people should not be putting money into cash value life insurance or annuities until they are maximizing their contributions to the Qualified Retirement Plans and IRAs and are in a very high tax bracket. Premiums paid into cash value life insurance or annuities are not tax deductible. Investments in cash value life insurance and annuities are not protected from creditors by ERISA. Investment gains in cash value life insurance and annuities are subject to higher income tax rates instead of lower capital gains rates.”
Mr. David Ron, Co-Founder & CEO of People’s Financial Advisor said: “We calculate the amount of Life Insurance you should have considering the size of your portfolio, the income to be replaced and the number of years it should last. We don’t sell insurance - we only care about our client’s actions and focused on increasing their net worth.”
About People’s Financial Advisor
People’s Financial Advisor is a leading provider of fiduciary financial planning services. Designed to help Middle America gain financial independence and peace of mind, convenient online services are balanced with interactive advisor consultations. People’s Financial Advisor offers a robust portfolio of services based on a proven behavioral finance approach called the Cambridge Methodology. Services include a free online assessment, online financial planning development tools and advice dealing with all aspects of financial decisions, opportunities and options. For more information please visit www.peoplesfinancialadvisor.com.
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Contact
www.peoplesfinancialadvisor.com
Bob Schumann
(720) 897-7966
http://www.peoplesfinancialadvisor.com
Bob Schumann
(720) 897-7966
http://www.peoplesfinancialadvisor.com
Contact
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