Why you may want to think twice about work provided life insurance

As the owner of Farmers Insurance - The Wertzberger Agency, I have conversations with clients about all different types of insurance products. A very regular conversation will be around the product of life insurance. We will have conversations about who should carry it, how much should be carried, and what type should be carried. Inevitably, through that conversation, the topic of life insurance being provided by one's employer will come up and my opinion on it; Should it be purchased? How much should be purchased?

When asked whether a client should purchase life insurance through their employer, my answer is always YES! However, it does come with a cautionary caveat of not to rely solely on work provided coverage to fill one's life insurance need. It should be a part of one's life insurance package, if not just supplementary to the coverage one owns personally.

To expand, think of it this way: There are basically three ways we all leave this earth.

1. Accident - As in car accident or some other type of unforeseeable incident.
2. Illness - As in Cancer or some other type of disease.
3. Age 

When contemplating work provided life insurance, what one needs to realize is that the coverage provided through one's employer normally ceases to be provided if/when one's employment were to stop. Now, think about about the three ways of passing listed above and whether or not work provided coverage would apply to be a saving grace for one's family.

1. Accident - Will you be employed at the time of death if you were to perish due to some type of accident? - POSSIBLY! Obviously, no one ever knows if/when a tragedy would strike that would cause one to perish due to an accident. It is certainly probable that one would be employed at the time of their passing due to an accident. Their work provided coverage MAY apply.
2. Illness - Will you be employed at the time of death if you were to perish due to some type of illness? - PROBABLY NOT! In many, if not all, cases if one were to acquire a life threatening disease it would very likely effect their ability to work. This would cause them to have to leave their place of employment and would in turn cause their life insurance to cease, just at the time it is needed most! Some may argue that in some cases work provided coverage can be converted to a personally owned policy but, if that is available, it is normally rated extremely high. Think about it: if one needs to convert work provided coverage it normally means that they can not acquire coverage directly due to a medical issue. This converted policy will VERY likely get paid out and the carrier will rate highly due to that circumstance.
3. Age - Will you be employed at the time of death if you were to perish due to age? I WOULD HOPE NOT! Obviously we all hope to retire as far before our death as possible. Work provided life insurance would cease to apply when retirement would be reached.

In conclusion, work provided life insurance can be a good PART of one's life insurance plan. Normally, work provided life insurance is very cheap and it allows the applicant to secure the most coverage for a very inexpensive cost. 

One needs to realize that work provided life insurance is cheap for a reason; It very likely will never get used!

If you would have interest in structuring a life insurance plan that you would own/control personally, please reach out to us at Farmers Insurance - The Wertzberger Agency at 913-383-3276 or www.thewertzbergeragency.com

Farmers Indexed Universal Life Insurance

Financial options. Financially savvy people know that the key to having options is to start early and have a mix of short-term and long-term, and lower-risk and higher-risk tactics in their financial game plan.

Life insurance is, first and foremost, a way to help protect your assets by replacing the income that makes your family’s lifestyle possible if something happens to you. But it can also be one step toward helping secure the financial options you want.

Indexed universal life insurance is a long-term insurance tool that combines the end-of-life death benefit offered by permanent life insurance with potential for cash value growth linked to a stock market index. Indexed universal life may offer advantages for people who want a lower-risk choice for their cash value than variable universal life insurance, but with potentially higher returns than traditional universal life insurance.

How indexed life insurance works
To understand how indexed life insurance fits into the spectrum of life insurance available, it's helpful to understand some life insurance basics.
There are two main types of life insurance: term and permanent.

Term life insurance is underwritten for a specific period of time, typically from five to thirty years, and the premium will increase if the policy owner wants to keep the policy in force after the initial term period has ended.

Permanent life insurance can insure you for a lifetime¹. The most common forms of permanent life insurance are whole life and universal life.

To help customers afford life insurance coverage later in life when the risk is higher, permanent life insurance policies have a generally income tax-deferred² cash accumulation feature that’s not available in most term policies. A portion of your premium payment goes toward cash value that may grow over time.

This cash value is primarily intended to help you cover the future cost of the policy as the cost of insurance goes up with age. However, the cash value can be borrowed or taken out (surrendered)³ for any use, and the death benefit remains guaranteed according to the terms of the contract and provided that premiums are paid.

Whole life insurance generally has a level premium and guaranteed level death benefit, while universal life has additional features including flexible premiums4 and face amounts to meet your changing needs.

There are three main kinds of universal life insurance: traditional, variable, and indexed.

Traditional universal life is designed to help you meet your current and future life insurance needs as your life changes – through marriage, parenthood, job promotions, retirement and more. You decide when and how much premium to pay, within policy limits, allowing you to build cash value faster when you have funds available, or temporarily suspend premium payments if times are tight. The policy’s cash value is guaranteed to earn a minimum interest rate, and may earn a higher rate depending on the company’s investment returns.

Variable universal life insurance has the same flexibility as universal life, plus an investment feature. The investment feature typically allows you to allocate your cash value to a broad choice of market-based "subaccounts." Variable universal life has the most potential for gain of any of the universal choices, but the subaccounts are also vulnerable to market fluctuations – when the market goes down, so does the value of subaccounts invested in the market.

Indexed universal life provides you the opportunity to allocate your premium into accounts whose returns are linked to the performance of specific market indexes. This money is not invested directly into the market. Instead, the insurance company monitors the performance of the indexes and calculates a credit based on that index’s annual percentage change. This can lead to gains in the cash accumulation account if the indexes perform well.

But what if the index performs poorly? Luckily, indexed policies usually include features that shield policy owners from losses due to a market decline. In exchange for this protection, most indexed policies are also subject to a cap on gains. Most indexed life insurance policies also offer a fixed account that policy owners can choose, which is guaranteed to grow by at least a minimum interest rate regardless of market performance.

There’s a popular adage in the life insurance industry: the best time to have started preparing for the future was 20 years ago. The second-best time is today.

Maybe you’re balancing a mortgage, saving for your children’s education, and looking ahead to retirement. Because of its versatility and generally income tax-deferred growth, and generally income tax-free⁵ distributions and death benefits, indexed universal life can help meet the needs of customers like you and me – customers with families, who may have full-time jobs or own small businesses.

Call me, at Farmers Insurance - The Wertzberger Agency, to talk about all of the ways Farmers Life can help you protect your financial assets and help secure your family’s financial future at 913-383-3276 or by email HERE

Your Farmers agent may only sell policies in states in which he or she is licensed.
Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.

¹Lifetime coverage is guaranteed as long as all premiums are paid to keep the policy in force.
²For informational purposes only. In general, partial withdrawals from a permanent life insurance policy in excess of the policy’s basis are taxable, and limited circumstances exist where death proceeds will be taxable. Neither Farmers New World Life Insurance Company, its employees nor its Agents provide legal or tax advice. Always consult your own attorney, accountant or tax adviser as to the legal, financial or tax consequences and advice on any particular transaction.

³Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.

⁴This policy may lapse if premiums are not paid or if premiums are not sufficient to continue coverage.

⁵Distributions from a life insurance policy in the character of partial surrenders (withdrawals) up to basis or policy loans will generally be income tax free, provided the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy is not terminated during the lifetime of the insured.  MEC guidelines are rules in the Internal Revenue Code which specify maximum premiums that can be paid without triggering adverse tax consequences for withdrawals. A policy termination during the life of the insured can cause the owner a single taxable event for any gains in the policy that were borrowed or withdrawn on or before the termination date.

Ways to Cover the Cost of Life Insurance

Many people may they think they have a good understanding of life insurance. Often, this may not be the case. When asked how much they thought life insurance would cost for a year, 80 percent of those who answered a recent survey overestimated the cost of term insurance¹ by more than twice what it really costs. The primary reason many people hesitate to purchase life insurance is the belief that it’s too expensive. That’s unfortunate considering that life insurance can help protect the financial future of your family should something happen to you. When you look at the numbers, the cost of coverage should not be a barrier for many people.

For example, a healthy 30-year-old man can get $250,000 of term coverage from Farmers New World Life Insurance Company for $22.68 a month². With the average monthly cost of $61³ for a cell phone, or $64⁴ for a cable subscription, life insurance is a relative bargain. As you can see, life insurance can be affordable.

Here are some money-saving ideas to consider that can benefit many areas of your life in addition to helping cover the cost of life insurance:

Create a budget. Track your expenses: knowing where your money is going may help you identify areas where you can easily reduce your spending. There are many free money management tools and apps that can assist you with this.

Quit smoking. It benefits your health, and a pack-a-day smoker can save over $2,000 per year based on the average cost of a pack of cigarettes⁵. Non-smokers can also expect lower life insurance rates – all other factors being equal – than smokers.

Bring your lunch to work. By not spending just $5 a day you are looking at saving about $1,200 a year. You don’t have to bring your lunch every day: even bringing your lunch every other day can result in savings that can help cover the cost of a life insurance policy, and possibly even more.

Eat out one less time per month. If it costs you about $30 on average each time you go out, reducing this number by once a month will allow you to save over $300 a year.

Bring coffee from home.  Do you spend $3 a day on coffee during the work week? If so, this can add up to $720 per year. Cutting this number in half can result in significant savings.

Save your loose change. It may not sound like much, but setting aside fifty cents a day over the course of a year will allow you to save more than $180.

Take advantage of all company benefits and discounts. Your company may offer corporate discounts on gym memberships, cell-phone data plans, hotels, concerts, etc. that can help you save.

Organize your closet. This can have a number of advantages. You can save time in the long run knowing where everything is located, and you may find forgotten items, reducing the need to purchase new ones. Consider consignment for items you no longer want to keep.

Research major purchases. Check product reviews, price comparisons, features, and other aspects of any product you are looking to purchase. Wait for sales for additional savings and discounts. A little research and timing can save big $$$ on a purchase.

Start small to save big
Starting with some small steps, you can easily find the money to pay for life insurance. The hardest part of any change is getting started. Once you do, things usually start to fall into place, the process becomes much easier, and you can begin to recognize the positive impact it has on your life.

Life insurance can positively impact your life by providing you comfort in knowing that it will help support your family financially in what may be a distressing and uncertain time. While no one likes to think about a time when they can no longer care for their family, your family’s needs will still be there even if you are not.

Contact me today to discuss your options regarding life insurance and how it can help you and your family. You can reach Farmers Insurance - The Wertzberger Agency by calling 913-383-3276 or by email HERE

¹ Data from the 2015 Insurance Barometer Study by Life Happens and LIMRA.
² Policy form 2000-230 or applicable state variation. Rate is based on a 20-year Farmers Value Term, 30-year-old male, non-nicotine Platinum Elite underwriting class. Electronic Funds Transfer required. Issuance of a policy and rates are subject to underwriting guidelines and approval. Premiums are subject to change after the initial term period.
³ New Street Research, The Wall Street Journal, March 9, 2014
⁴ Report on Cable Industry Prices, Federal Communications Commission, May 16, 2014
⁵ http://www.cdc.gov/tobacco/data_statistics/tables/economics/infographics/index.htm
Your Farmers agent may only sell policies in states in which he or she is licensed.
Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.
Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.

Help protect your loved ones’ financial future with Life insurance

A summer’s evening spent by a campfire, the sound of your children’s laughter as they play on the beach, grilling your “famous” burgers at an afternoon picnic ... there are many enjoyable ways to spend a summer weekend, and these events are usually made all the more special with family as part of them. You hope these traditions are passed down, and that your family has many days filled with similar memories in their future.

Unfortunately, simply wanting the best for those you love isn’t enough: no one can guarantee they will always be there to care for loved ones. Life insurance can help protect your family, however, by lessening the financial impact of your loss if your family has to carry on without you.

Life insurance can help loved ones

Life insurance can help protect your spouse and children from potentially devastating financial losses that can result if you were to die prematurely. Too often, when an income earner dies, survivors are forced to make tough financial decisions at a time when they may not be in a position emotionally to do so. Life insurance would provide your survivors a chance to adjust to this change over time, instead of having to look immediately for a new residence or a higher-paying job. Some of the ways life insurance can help your family include:

• Providing income in a time of need:  While life insurance won’t replace you, it can help replace some or all of your income if you die. It can help cover the cost of funeral expenses, be used to pay off debts, and help with day-to-day living expenses such as food, clothing and housing. It can help longer term goals, such college tuition or retirement plans, become a reality.
• Assisting with household needs:  Something that can get overlooked is the financial value a stay-at-home parent provides. The services they provide are invaluable to a family. In the event of the loss of a stay-at-home parent, life insurance can help pay for important household services like childcare, transportation and general household duties.
• Supplying financial benefits during your lifetime:  If you choose Whole Life insurance, the cash value of your policy increases over time and you can access those funds for a variety of needs. 1 These funds can be used to help pay for life events such as buying a home, a wedding, or educational expenses. Whole Life insurance can also provide the ability to take out a loan from your policy at a lower rate than banks offer, to add to an investment portfolio or to supplement your retirement income.

Give those you love a lasting gift

Whether for their family, a spouse or an essential business partner, people purchase life insurance to help those they care about have a more secure financial future. You can do this for those important to you as well. Start a new tradition and make life insurance a part of your family legacy. It may end up being the most valuable one of all. Contact me today and we can get started.

To speak to a representative with Farmers about Life Insurance or other products, call us at Farmers Insurance - The Wertzberger Agency at 913-383-3276 or email us HERE

1Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.

Benefits of Life Insurance on Children and Grandchildren

Juvenile life insurance is permanent, affordable insurance that can provide your children or grandchildren with their own life insurance policy as well as benefits above and beyond what your own life insurance policy may offer them.

Why do people insure their children and grandchildren?

There are many reasons:

• A medical exam is typically not required and coverage is guaranteed for life¹, regardless of the future health of the child.
• The cost of insurance for a child is typically less than similar coverage for an adult. Some policies offer an option to purchase additional insurance in the future, regardless of insurability.
• Over time, the policy may accumulate cash value. This cash value can be used to pay future premiums.
• You may withdraw or borrow funds² from the policy generally income tax free.³
• Unlike funds in 529 college savings plans, a juvenile life insurance policy’s cash value doesn’t have to be used specifically for education. It can be used for other purposes such as wedding expenses or a down payment on a home, for example.
• Juvenile life insurance may also helpful for estate planning by providing for the tax-efficient transfer of wealth.  See your estate planning expert for details.

How is it different than college savings plans?

Let’s say you want to accumulate funds for your child or grandchild’s future college tuition. You may consider a 529 savings plan. There may be up-front tax savings which might be attractive, but if your child or grandchild’s college plans change, withdrawal restrictions will generally apply. With limited exceptions, you can only withdraw money that you invest in a 529 plan for eligible higher education expenses without incurring taxes and penalties. In contrast, a permanent life insurance policy’s cash value can be withdrawn or borrowed tax-free by the policy owner for any purpose. It can be used to help the child purchase a car, a home, or even to start a business.

If the child goes to college as planned, under current rules, the cash value that has accumulated in a permanent life policy won’t have to be declared and counted against them when it’s time to qualify for financial aid. Although each educational institution may treat assets held in a 529 plan differently, investing in a 529 plan will generally reduce a student’s eligibility to participate in need-based financial aid.⁴

Consider a non-traditional and versatile gift for your child or grandchild. Let’s talk about how the cash value in a permanent juvenile life insurance policy can potentially provide your children or grandchildren with a lifetime of financial and life insurance options.

For more insurance about life insurance or to start the application process, please contact Farmers Insurance - The Wertzberger Agency at 913-383-3276 or by email HERE.

¹The death benefit is guaranteed according to the terms of the contract and provided that premiums are paid.

²Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.

³Distributions from a life insurance policy in the character of partial surrenders (withdrawals) up to basis or policy loans will generally be income tax free, provided the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy is not terminated during the lifetime of the insured. MEC guidelines are rules in the Internal Revenue Code which specify maximum premiums that can be paid without triggering adverse tax consequences for withdrawals. A policy termination during the life of the insured can cause the owner a single taxable event for any gains in the policy that were borrowed or withdrawn on or before the termination date.

For informational purposes only. In general, partial withdrawals from a permanent life insurance policy in excess of the policy’s basis are taxable, and limited circumstances exist where death proceeds will be taxable. Neither Farmers New World Life Insurance Company, its employees nor its Agents provide legal or tax advice. Always consult your own attorney, accountant or tax adviser as to the legal, financial or tax consequences and advice on any particular transaction.

⁴http://www.sec.gov/investor/pubs/intro529.htm
Your Farmers agent may only sell policies in states in which he or she is licensed.

Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.
0615-A  6/15

Love and life lessons learned the hard way

Life insurance is love insurance, which makes February — the month of love — the time to “Insure Your Love.ˮ¹

The death of a spouse often ushers in some harsh economic realities for the survivor. Without life insurance or other assets, many face a sharp drop in income. For some, it can be the beginning of a slide into poverty. Worse yet, older women are more vulnerable to poverty than men. Nearly a third of single women over age 75 are left with incomes of less than $890 a month.²

The two sides of Social Security
Although many widows may be hit especially hard financially by the loss of a spouse, Social Security benefits can prove to be a life saver. For example:

• If you’re a widow and your deceased spouse is eligible for Social Security, you may be eligible to receive full benefits at your full retirement age or reduced benefits as early as age 60.³
• If you and your deceased spouse have children under age 16 you may be eligible for survivor’s benefits payable until they reach the age of 18.³ Something to note: Once your dependent children reach age 18, there are no Social Security survivor benefits available until you are age 60 or eligible for your own Social Security retirement, the earliest at age 62.³

Bottom line: What this means is that there may be a blackout period that could run for many years during which a widow is not eligible for any Social Security benefits. That’s the reason why many struggle financially and why some end up in poverty. It doesn’t have to be this way, however.

The power of life insurance
People buy life insurance because they love someone — they want to protect them financially and have a positive effect on their lives. Once families know about their vulnerability to these risks they can do something about it, and there’s no better time to act than now.

Let’s get together. I can help you begin to assess your needs so you can determine how much and what kind of coverage is appropriate for you and your loved ones. Life can change in the blink of an eye — what will be your legacy?

¹http://www.lifehappens.org/press-releases/february-marks-the-life-foundations-annual-insure-your-love-awareness-campaign/
²http://www.wiserwomen.org/index.php?id=274&page=Widowhood:_Why_Women_Need_to_Talk_About_This_Issue
³http://www.ssa.gov/survivorplan/survivorchartred.htm

Why Should I Buy Life Insurance on My Child?

For many adults, the need for life insurance on themselves is clear. They have a household that depends on them (and their income) in order to survive. The income that they bring into the household on a monthly basis allows the family to pay the mortgage, pay for daycare, pay the car loan, pay all other bills, save, and live the lifestyle that they are accustomed to. If an untimely death would occur, the household would cease to receive their income. The surviving family would no longer be able to live the same lifestyle; live in the same home. An untimely death would also put the burden of funeral expenses on the family that may have not been saved for. This is why many adults purchase life insurance. Life insurance isn't bought for you, but for those you would leave behind.

However, babies/children have no income to replace if anything were to happen so why buy life insurance on a child?

At Farmers Insurance - The Wertzberger Agency, we not only highly recommend life insurance for parents. We highly recommend life insurance for EACH CHILD of our clients. Why you might ask? Here are four reasons why you should purchase life insurance on your children.

Reason #1: The Coverage
As a parent, a loss of a child is devastating no matter the age of that child. If anything were to ever happen to one your children, you are going to want to spend time with your family to process and recover. Having life insurance on your children allows you the opportunity to take the necessary time to grieve and give your child the proper sendoff they would deserve. Life insurance provides you and your family peace of mind by not having to worry about income stopping during that time, it also would provide you funding for funeral services etc during that time.

Reason #2: Protecting their insure-ability
We all know that the big factors when it comes to qualifying for life insurance is our age and our medical history. If someone is overweight, a diabetic, a cancer survivor, or of just an older age, they may not be able to qualify for life insurance. When purchasing life insurance for your children, they are the healthiest they will ever be. As we age, we are more at risk for issues that would determine if we are eligible for insurance or not. Getting life insurance on a child when they are the youngest allows them to get coverage in force before the risk of any child onset illness that may effect whether they can qualify for life insurance in the future.

Reason #3: Future cash growth
Many permanent type life insurance policies have added benefits of being able to grow cash value in addition to providing needed life insurance. Over time, if funded properly, this cash value can grow to substantial levels. Even better, this cash value can be accessed without penalty (usually after a waiting period) and TAX FREE! Many parents use this benefit to help with down payments on a home for their children, assistance with purchasing a car, or simply let their children reap the benefits of the cash value continuing to grow. Many high income earners who can no longer qualify for tax beneficial savings plans (Roth IRAs), use permanent life insurance as a way of growing cash to access (tax free) in the future. With the assumption that tax rates will do nothing but increase as time goes on, this can be a method of minimizing future taxable income. This would be referred to as tax free supplemental retirement income when accessed. Getting life insurance on a child allows for a very long time period for growing the cash account for future benefit.

Reason #4: It's cheap
After hearing about all the reasons to get life insurance on children and future cash growth benefits, many parents are shocked to know exactly how inexpensive it is. Depending on the age of the child, the type of policy, and the funding intentions, a policy can be purchased for as low as $15/month.

The mindset of purchasing life insurance on a child can be a hard one for parents to put themselves in. However, after having a conversation on all the benefits of a policy, it's usually a very easy decision to make on purchasing a life policy for your child.

For more information on life insurance policies or to receive a personalized proposal, please contact Farmers Insurance - The Wertzberger Agency at 913-383-3276.

How will you make a difference?

How will you leave the world a better place? Beyond the contents of your last will and testament, what part of you do you want to leave behind? What will be your legacy?

What matters to you?
The cornerstone of your legacy is a deep sense of knowing what’s important to you. Maybe you have strong ties to your college. Maybe it’s the Humane Society who blessed you with your beloved pet; maybe it’s the American Cancer Society or the Ronald McDonald House that helped you out when your child had surgery; perhaps it’s the symphony you love or the YMCA where your kids learned to play soccer; maybe it’s your house of worship or community foundation. Whatever it may be, your first step in legacy planning is to define it.

The planning
Once you know what’s important to you, you need a plan that enables you to make a positive impact on the people and causes you care most about. After you’ve defined your charitable goals and developed your plan, life insurance may help provide the means to fund your plan.

There are many ways to make a charitable gift using life insurance. You (as the owner) can name the charity as the beneficiary on an existing insurance policy. This may allow you to make a larger gift than you could otherwise afford. Another alternative is to donate an existing life insurance policy to charity. Or the charity can purchase a policy on your life. Each method has advantages and disadvantages and which is best for you depends on your individual situation. You should consult with and rely on your own independent legal and tax advisors.

Make a difference
I can show you ways to use life insurance to help maximize your charitable gift while still providing a legacy to your family. Let’s get together. I want to help you learn more about how life insurance can help you make a difference to both your family and the causes you care most about. By combining charitable giving and life insurance in your estate planning, you can help build a lasting legacy and influence the good work of a charity beyond your own lifetime. You can make a difference.

The information provided in this article is for informational purposes only. Neither Farmers New World Life Insurance Company, its employees nor its agents provide legal or tax advice. Always consult your own attorney, accountant or tax advisor as to the legal, financial or tax consequences of any transaction.

Your Farmers agent may only sell policies in states in which he or she is licensed.

Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040

It’s time for your fiscal checkup

When was the last time you evaluated your financial health? Many people get a physical checkup annually but how about a fiscal checkup? It’s an opportunity to review how you’ve done financially over the past 12 months and to make sure you’re still headed in the right direction.

• Review your goals. Have you made progress on them this year? If not, where have you fallen short? Have your goals changed? If so, revise them and write them down.
• Evaluate changes in your personal situation. Big life events such as a job change, marriage, divorce, the birth of a child and so on, can disrupt even the best strategies and necessitate a change. For example, you may need to adjust your budget, your spending, your savings, etc. You may need to purchase additional life insurance, if for example, you lost/left your job and no longer have your employer group life insurance coverage.
• Protect your assets. Are you still adequately insured? I can help you review your homeowners, renters and auto insurance policies as well as your life insurance so you can be sure you have the coverage you want.
• How’s your emergency fund? Life is full of unexpected surprises. If you don’t plan for the unexpected — a car repair, illness, unemployment — these events can catch you off guard and leave you financially strapped or tapped. When the unexpected happens, it’s important to have a stash of cash set aside in an emergency fund. At a minimum, an emergency fund should consist of three months of your living expenses.
• Track your net worth. Simply subtract what you owe (your liabilities) from what you own (your assets). Like the stock market, your net worth will fluctuate so track it year-by-year. It’s the overall trend that’s important — as you pay down debt, build equity in your home, acquire more assets, and so forth, your net worth should continue to grow.
• Review your retirement strategy. Are you contributing the maximum to your 401(k) plan? If not, make sure you’re contributing at least enough to capture any available employer-matching funds. If your employer doesn’t offer a retirement plan, consider setting up an IRA on your own and making regular contributions.
• Prepare for the unexpected. Review your estate plan, including your will.
• Do you need to make adjustments? Make sure the beneficiary designations on your retirement accounts and life insurance policies are up to date.

Whether getting started or working toward your goals, contact The Wertzberger Agency today, because the more you know about your overall financial health, the better you can plan for the future.

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.

Prepare today for your family’s tomorrow

Life insurance is often an essential component of a sound financial plan. However, if you’re not in perfect health, or if you’ve been turned down for life insurance before, it’s not always easy to get. Yet you want to plan ahead to take care of your obligations — you don’t want to burden your family, the ones you care most about.

Farmers Life^® wants to help. If you think you’re stuck without options, consider this: You may qualify for up to $20,000 of permanent whole life insurance¹ with no medical exam² — answer only three simple health questions. Here are three important features of this life insurance:

• You don’t have to be in perfect health — If you’re between ages 45 and 80 and still living independently you may qualify.
• Your policy builds cash value — You may be able to borrow against your policy to cover unexpected expenses.
• Your rate will never increase — Regardless of your age or health, your premium will never go up.

With the average cost of a funeral³ now more than $7000,⁴ this coverage may be an appropriate way to help you prepare for your family’s tomorrow. Call Farmers Insurance - The Wertzberger Agency at 913-383-3276 to learn more so you can be sure you have the coverage you want. The more you know about life insurance the better you can plan for the future. Learn more, plan better.

¹ Farmers Graded Death Benefit Whole Life Insurance policy. Limited death benefit during the first two policy years. Policy form numbers ICC11-2011-123 or applicable state variation.

² Issuance of a policy may depend on answers to questions set forth in the application.

³ This life insurance does not specifically cover funeral goods or services, and may not cover the entire cost of your funeral at the time of your death. The beneficiary may use the proceeds for any purpose unless otherwise directed.

⁴ http://nfda.org/news-a-events/all-press-releases/3719-nfda-releases-results-of-member-general-price-list-survey.html

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040. Products and features may not be available in all states and may vary by state.

Do you have a life insurance gap?

Are you one of the millions of employees in the U.S. who has life insurance through your place of employment? You may think you have enough coverage, but do you?

Currently, more than half of private businesses offer their employees life insurance plans, and nearly all eligible employees are enrolled.¹ Even though so many take advantage of this benefit, 50 percent of American households don’t think they have enough life insurance.² Are they right?

Life insurance purchased through an employer can be a convenient, cost-effective option, and it often doesn’t require a medical exam. However, tying your life insurance coverage to a job could leave your coverage at risk in the event of layoffs or changes in company benefit plans. If you were to get sick or injured and had to leave work, your group life insurance coverage could terminate, just when you may need it most.

In addition, group life insurance policies typically have low limits. Many financial professionals recommend a death benefit equal to seven to 10 times your annual income.³ However, many households rely solely on employer-provided coverage, which may only replace up to twice your yearly income. The takeaway is this: 50 percent of consumers are probably right, they are underinsured, potentially affecting their ability to pay bills, send their children to school and meet other financial obligations.

So, how do you get the life insurance you need, beyond what your employer may provide?

Close the gap
For many families, personal life insurance may help fill gaps in employer group coverage and provide financial security in case of cutbacks or job changes. You can choose your own insurance provider, lock in rates and have consistent, flexible coverage.

Exactly how much life insurance you need depends on factors such as your assets, your debts, and your family’s other sources of income. You’ll be able to choose between term and permanent life insurance and maybe even receive cash-accumulating benefits.

When it comes to life insurance, cheaper isn’t always better
The cost of life insurance can vary widely from company to company, even for the same amount of coverage. And if coverage appears to be the same, why should you pay more?
Here are some factors to consider when selecting an insurance company:

• Company strength — Life insurance is a long-term investment, so it’s vitally important that you select a provider with a history of financial stability. Companies such as A.M. Best, an insurance rating agency, provide up-to-date information on the financial health of most life insurance companies.
• Company size — Does size matter? Yes and no. Although past performance does not guarantee future results, most of the largest insurance companies have been in business for decades, and some date all the way back to the 1840s. When a company has been in business that long, it’s reasonable to assume that it understands the complexities and nuances of the insurance business, is able to manage risk and grow assets, and has a history of meeting long-term financial obligations. Farmers Life has been meeting its obligations to customers since 1910.
• Agent relationship — Life insurance can be complicated. My goal is to help you find a life insurance policy that best meets your needs based on your family obligations, finances, health, and personal circumstances. Once you purchase your coverage, my goal is to keep the conversation going. We’ll get together annually — or sooner if your life situation changes — and review your policy so you can be sure you have the coverage you want based on your current circumstances.

No matter which company’s policy you decide to purchase, make sure you understand what you are buying. Learn all you can about life insurance because it’s worth knowing about. And remember, the more you know, the better you can plan for the future. A free service that I offer is a Farmers Friendly Review^®, an opportunity to get together and go over your insurance program so you can determine whether your coverage is aligned with your needs. Call me, and together we can work to find life coverage that’s right for you. The Wertzberger Agency can be reached at 913-383-3276 where we can chat about your life insurance plan.

¹http://www.bls.gov/news.release/ebs2.t05.htm

²http://www.limra.com/uploadedFiles/limracom/Posts/PR/LIAM/PDF/Facts-Life-2013.pdf

³http://www.bankrate.com/finance/insurance/how-much-life-insurance-should-you-buy.aspx

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.

What if you didn’t know what Boomer knows?

If you were suddenly removed from the picture, what would happen to those you love? Think about it … would they suffer financially? Boomer knows.

Boomer Esiason is a husband, a dad and a record-setting NFL quarterback. These days he’s a popular radio and TV broadcaster. He’s also a spokesperson for Life Insurance Awareness Month — his hope is that others will learn from his personal story and get the life insurance protection they need.

Boomer was seven when his mother died with no life insurance. His father coped with his own grief and the constant struggle to keep finances, work, home and his kids in balance. “I was handed a life lesson early,” says Boomer. “It wasn’t the easiest life — my dad sacrificed a lot.”

Boomer went behind the counter in “Undercover: Boomer the Barista,” to show that you just never know what’s going to happen next. After all, would you expect to have your morning espresso served up by a sports hero?

Does anyone depend on you for support?
Whether you’re single, starting a family, have kids already in school, are preparing for retirement or already retired, life insurance should be part of your overall financial plan. Helping your family avoid financial hardship in the event of your passing is one of the most important reasons to own life insurance. And if you own a small business, you have business insurance needs as well.
Now is the time to act: You can help ensure that your family does not endure unnecessary financial hardship. I am here to help and so is Farmers Life^®.
Life insurance can be life changing for those you love. It can help them:

• Pay the mortgage
• Maintain their current standard of living
• Fund your children’s college education
• Pay for final expenses

Life insurance is one of the greatest gifts you can give to those you love. Boomer knows.

Farmers Insurance makes it easy to do the right thing for loved ones

It should be easy to buy life insurance to help protect your loved ones. But for anyone without a Social Security number (SSN), it may get complicated. Farmers wants to help: We’ve removed certain barriers to allow more people to qualify for Farmers EssentialLife^® Simple Whole Life (FESWL)¹ or Farmers Simple Term Life² insurance.
Farmers Life^® now accepts applications for term and permanent life insurance from U.S. residents who are Individual Taxpayer Identification Number (ITIN) holders. An Individual Taxpayer Identification Number is a tax ID issued by the IRS to individuals who have U.S. income but are not eligible for a Social Security number (SSN). People who have ITINs and U.S. residency may now be eligible for certain products. If you’re already a Farmers customer, you don’t even have to provide proof of residency. Not a Farmers customer yet? Just verify that you’ve been a U.S. resident for at least six months.

Farmers knows that protecting loved ones is important to everyone, and we want to help you make sure your loved ones can maintain their lifestyle if something happens to you. A Farmers life insurance policy can help you do that. Call The Wertzberger Agency today for more information about helping protect your family at 913-383-3276

¹ Policy form 2008-352
² Policy form 2005-261 or applicable state variation

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040. Products and features may not be available in all states and may vary by state.

Summer safety: Lightning facts and safety tips

Each year, lightning causes dozens of deaths, thousands of fires, and billions of dollars in property damage.¹ It’s smart to learn as much as you can about lightning so you can take steps to protect yourself, your loved ones and your property against one of nature’s most dangerous phenomena.
Most lightning deaths and injuries in the United States occur during the summer months, when lightning strikes are more frequent and outdoor activities are at their peak², so when enjoying outdoor activities it’s important to pay attention to the weather and take appropriate actions in a timely manner when thunderstorms approach.
Did you know that:

• When it comes to lightning, rubber shoes do nothing to protect you?
• In the home, talking on a wired landline telephone is the leading cause of lightning injuries? Cordless phones are safe to use.
• You should not seek shelter in a lightning storm under a tall tree? That’s one of the most dangerous places to be.

Flash facts
Here are some facts about lightning excerpted from National Geographic News, Flash Facts About Lightning³:

• Lightning is a giant discharge of electricity accompanied by a brilliant flash of light and a loud crack of thunder. The spark can reach over five miles, raise the temperature of the air by as much as 50,000 degrees Fahrenheit and contain a hundred million electrical volts.
• The Fourth of July is historically one of the most deadly times of the year for lightning in the U.S. In summer, especially on a holiday, more people are on the beach, golf course, mountains, or ball fields. Outdoor chores such as lawn mowing or house painting are at their peak.
• If you can hear thunder, you can be struck by lightning — seek shelter.
• Use the 30-30 rule. When you see lightning, count the time until you hear thunder. If it’s 30 seconds or less, you are within six miles of the storm and should seek shelter immediately.
• Don’t be fooled by sunshine or blue sky! Wait at least 30 minutes after the last clap of thunder before leaving shelter. 
• Swimming is particularly dangerous. Water conducts electricity and swimmers protrude from the water, offering a potential channel for electrical discharge.
• At home, avoid contact with anything that conducts electricity:
• Stay away from windows and doors
• Don’t use wired landline telephones
• Don’t lie on a concrete floor (it likely contains a wire mesh)
• Avoid contact with concrete walls (they may contain metal reinforcing bars)
• Avoid washers and dryers
• Unplug electronic equipment
• Don’t wash dishes or your hands
• Don’t shower, bathe or do laundry
• Always avoid being the highest object or taking shelter near or under the highest object, including tall trees and umbrellas. Lightning is “lazy,” and usually takes the shortest path to earth, striking the tallest object. Don’t let that be you.
• If someone is struck by lightning, call 911 immediately. Lightning often causes cardiac arrest. Check for respiration and a heartbeat. If the victim isn’t breathing and doesn’t have a heartbeat, immediately begin CPR and continue until emergency medical help arrives.

Flash fiction
Here are some misconceptions about lightning excerpted from National Geographic News, Flash Facts About Lightning³:

• Surge protectors offer protection against direct lightning strikes. False. They don’t! Unplug equipment such as computers and televisions.
• Don’t touch a lightning victim — you could get electrocuted. False. People who’ve been electrocuted don’t retain the charge and are not “electrified.” It’s safe to help them.
• Rubber shoes provide meaningful protection from lightning. False. They don’t.
• Lightning doesn’t strike the same place twice. False. It can — and often does. Tall buildings and monuments are frequently hit by lightning. 

If the worst occurs
While your chances of being struck by lightning are rare, it does happen. Should the worst happen to you, would your family be able to maintain their standard of living? Make sure the answer is yes. Whether you’re just getting started with life insurance or have had insurance for years, there’s a lot to learn. I want to help you understand the basics and feel confident that you’re making informed choices. It’s worth a conversation — let’s get started. Call The Wertzberger Agency today at 913-383-3276

¹http://www.lightningsafety.com/nlsi_lls/nlsi_annual_usa_losses.htm

²http://www.lightningsafety.noaa.gov
³http://news.nationalgeographic.com/news/2004/06/0623_040623_lightningfacts.html

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040