Frequently Asked Questions

At Team R U S H, we have been providing financial consulting services for over 14 years. Our team of experts has helped numerous individual and businesses achieve their marketing goals and increase their revenue.

*Life insurance FAQ:

1. **What is life insurance?**

 Life insurance is a financial contract between an individual and an insurance company, where the insured pays regular premiums, and in return, the insurer provides a death benefit to the beneficiaries upon the insured's death.

2. **Why do I need life insurance?**

 Life insurance helps provide financial protection for your loved ones in the event of your death. It can cover expenses like funeral costs, outstanding debts, and provide income replacement to maintain your family's standard of living.

3. **What are the types of life insurance?**

 There are two primary types: term life insurance, which provides coverage for a specific term, and Permanent insurance, which covers you for your entire life and includes a cash value component.

4. **How much life insurance do I need?**

 The amount of coverage depends on factors like your financial obligations, income, and the needs of your dependents. A common guideline is to have coverage that is 5 to 10 times your annual income.

5. **Can I change my life insurance coverage?**

 Yes, you can typically adjust your coverage. With term life insurance, you might be able to convert to a permanent policy. IUL policies often allow adjustments to the death benefit and premiums.

6. **How are premiums determined?**

 Premiums are influenced by factors such as age, health, lifestyle, coverage amount, and the type of policy. Generally, the younger and healthier you are when you buy a policy, the lower your premiums.

7. **Are life insurance payouts taxable?**

 In most cases, life insurance death benefits are not subject to income tax. However, there could be estate tax implications, so it's advisable to consult with a tax professional.

8. **What happens if I miss a premium payment?**

 The consequences depend on the policy and the insurer. Some policies have a grace period, while others may lapse if premiums are not paid. It's crucial to understand the terms and conditions of your specific policy.

9. **Can I have multiple life insurance policies?**

 Yes, it's possible to have multiple life insurance policies. This might be beneficial if your needs change over time or if you want a combination of term and permanent coverage.

10. **When should I review my life insurance coverage?**

 It's advisable to review your life insurance coverage whenever significant life events occur, such as marriage, the birth of a child, a change in income, or the purchase of a home. Regular reviews ensure your coverage aligns with your current needs.

*Indexed Annuity FAQ:

*What is the advantage of rolling over an IRA/401K/etc... to an indexed annuity?

• Answer: Rolling over an IRA/401K/etc... to an indexed annuity may provide the potential for market-linked returns while offering principal protection, making it attractive for individuals seeking a balance between growth potential and downside risk.

*How does an indexed annuity offer growth potential?

• Answer: Indexed annuities are linked to the performance of a financial index. If the chosen index performs well, the annuity may credit interest based on that positive performance, potentially providing higher returns compared to traditional fixed-rate options.

*Do indexed annuities have guaranteed minimum returns for IRAs?

• Answer: Yes, indexed annuities typically come with a guaranteed minimum interest rate, providing a floor for the IRA's growth even if the linked index performs poorly.

*Can I lose money by rolling over my IRA to an indexed annuity?

• Answer: While indexed annuities offer principal protection, the potential for loss exists in certain market conditions. The credited interest may be lower than expected or even zero, but the contract's value won't decrease below the guaranteed minimum.

*What are the tax implications of rolling over an IRA to an indexed annuity?

• Answer: The rollover itself is generally a tax-free transaction, but earnings within the indexed annuity will grow tax-deferred. Withdrawals from the indexed annuity, when taken, are taxed as ordinary income.

*Is liquidity affected by rolling over an IRA to an indexed annuity?

• Answer: Yes, indexed annuities often have surrender periods during which early withdrawals may be subject to surrender charges. Some annuities, however, allow penalty-free withdrawals up to a certain percentage of the account value each year.

*Can I access my money in the indexed annuity during retirement?

• Answer: Yes, indexed annuities can provide a stream of income during retirement. There are various payout options, including annuitization or utilizing optional riders for guaranteed income.

*Who might benefit from rolling over an IRA to an indexed annuity?

• Answer: Individuals who are looking for a retirement strategy that combines potential market-linked returns with a level of principal protection may find rolling over their IRA to an indexed annuity beneficial.

*Are there any drawbacks to consider when rolling over an IRA to an indexed annuity?

• Answer: Drawbacks may include surrender charges for early withdrawals, potential limitations on market-linked returns due to caps or participation rates, and the complexity of the annuity contract.