Life Payouts, Social Security and Superfoods

Nate Crosby |

What Type of Life Insurance Pays out Most Often?

In the world of life insurance there are many different types of life policies, but realistically they can all be broken down into two categories: term and permanent insurance. Term policies provide coverage for a specific period of time, and they accumulate no cash value. Initially, term insurance policies have the lowest entry point when comparing premiums. Why? The majority of term life insurance policies do not end up paying a death benefit. According to various industry sources, it's estimated that only between 1% and 2% of term life insurance policies ever pay a death benefit. This low payout rate is mainly due to the nature of term life insurance, which provides coverage for a set period (often 10, 20, or 30 years). If the policyholder outlives the term of the policy, and they have not converted the policy to a permanent one or renewed it, then the coverage ends, and no death benefit is paid out. Term life insurance is typically purchased to cover financial responsibilities that will disappear over time, such as a mortgage or the cost of raising and educating children. If the goal is generational wealth or paying for final expenses, a term insurance policy is not an appropriate choice because it is engineered to expire before you do. Permanent insurance is exactly what it sounds like. It is insurance that is designed to stay with you your entire life. Most permanent policies accumulate cash value which can be accessed at any time. Permanent life insurance policies require more premium than term policies because: 1) They are engineered to last longer than you, 2) many people access the cash value in retirement as a tax-free or tax preferential source of income.

Which policy type is better? The answer is the one that fits your individual needs. 

Who might benefit from delayed Social Security

For those who qualify for benefits, Social Security planning is an important part of a retirement income plan. When might it make sense for the higher earner of a married couple to delay taking Social Security benefits? The question of when to claim Social Security benefits is a highly personal decision that is based on several factors of your individual financial situation. Social Security benefits can be claimed as early as age 62 for a reduced benefit. Full retirement age for Social Security is between age 66 and 67, depending on date of birth. After full retirement age, each year benefits are delayed the benefit amount increases by 8% (simple interest) until age 70. There could be several advantages for the higher income earner of a married couple to delay taking social security benefits - including:

  1. Each year that a person delays claiming Social Security past their full retirement age (up to age 70), their monthly benefit increases by 8%. The higher-earning spouse delaying benefits may result in significantly higher lifetime benefits, especially if they live a long life.
  2. If the higher-earning spouse passes away first, the surviving spouse will be entitled to receive the higher earner's benefit as a survivor benefit if it's higher than their own. By delaying benefits, the higher-earning spouse can ensure that the surviving spouse receives the largest possible benefit.
  3. Depending on other sources of income, it may be tax advantageous to delay Social Security benefits. This is because Social Security benefits may be taxable depending on your overall income level. (Up to 85% of Social Security Benefits can be taxable, depending on income level.)

5 Superfoods to protect against cell damage

Antioxidants help protect your cells from damage by counteracting harmful molecules known as free radicals. Here are five foods that can help you load up on antioxidants:

  1. Many types of berries are rich in antioxidants. Among them, blueberries are often singled out as having particularly high levels. Goji berries, raspberries, strawberries, and elderberries also contain substantial amounts.
  2. Great news, dark chocolate is loaded with antioxidants. It's also rich in other nutrients like iron and magnesium.
  3. Many nuts and seeds are good sources of antioxidants. Among them, pecans and walnuts have some of the highest levels.
  4. Leafy greens like spinach and kale are packed with vitamins and antioxidants. They are also high in fiber and low in calories, making them excellent for overall health.
  5. Artichokes are a great source of dietary fiber, minerals, and antioxidants. Artichoke hearts are a great addition to any salad. 

Crosby Advisory Group, LLC specializes in wealth accumulation, asset protection, and business growth. If you have a question, contact one of our experts.

Disclaimer: This newsletter is for informational purposes and does not represent individual investment advice. Crosby Advisory Group, LLC has three branches of services: registered investment advisor, marketing firm, insurance agency. Investing involves risk including the potential loss of principal.