Buying a Home
What should you know about life insurance? Here are the facts:
- There are two basic types of life insurance: term life insurance and permanent life insurance.
- Term insurance works somewhat like car insurance: You pay premiums that provide coverage for a certain period of time. If your death occurs while you are covered, the beneficiary of your policy will receive a predetermined death benefit. The premiums in a term insurance policy are often cheaper than those in a permanent policy, but usually become more expensive over time.
- Permanent insurance may be more expensive than term insurance, but it can offer significant benefits, including guaranteed premiums, flexible payment options, and investment opportunity. There are four major types of permanent life insurance:
- Whole life insurance offers the most guarantees of any kind of life insurance. The premiums will never increase. The death benefit will never go down (unless there have been any loans or withdrawals taken). In addition, whole life insurance policies have a guaranteed cash value, which can be borrowed against. This living benefit can be used as an emergency fund or to supplement retirement income.
- Universal life insurance provides a guaranteed death benefit while also offering flexibility with premiums. The policy holder can vary the amount paid each month, as long there is enough money in the account to pay for certain minimum insurance and maintenance charges. Depending on how much money accumulates in the account, the policy may also accumulate tax-deferred cash value.
- Variable life insurance allows a high degree of flexibility with premiums, including the option to direct a portion of premium payments to a separate account, which can serve an investment vehicle. This can allow for the possibility of greater growth in cash value, but it can also entail a greater risk.
- Survivorship life insurance covers two people on the same policy. These policies are often cheaper than insuring an individual, but death benefits are not paid until both covered individuals have died.
Is a mutual fund right for me? Here are the facts:
- A mutual fund combines the investments from a number of individuals or groups into a pool, which is managed by a professional investment advisor.
- Mutual funds generally offer a wide degree of diversification; a single fund will often contain a variety of stocks, bonds, and money markets.
- The investors in a particular mutual fund are often united by a specific financial goal. Some mutual funds are focused on immediate income, while others focus more on long-term growth, or on a mix of income and growth.
Mutual Funds are sold by prospectus only. You should carefully consider the investment objectives, risks, charges and expenses of the fund before making an investment decision. The prospectus contains this and other important information. Please read it carefully before investing or sending money. To obtain a copy, please call 503-207-4550.
Investing in mutual funds involves certain risks, including possible loss of the principal amount invested. The investment return and principal value may fluctuate so that the investment, when redeemed, may be worth more or less than original cost.
Disability Income Insurance
Is disability income insurance right for me? Here are the facts:
- Disability income insurance will allow you to retain a percentage of your earned income, even in the event that you are unable to work due to serious injury or illness.
- In most cases, you will not have to pay taxes on the benefits you are paid, when paid by the individual with after tax dollars.
- Disability insurance is crucial for anyone who is an income provider for their family. This also includes single people, who do not have the benefit of a spouse to fall back on if they become unable to work due to serious injury or illness.