Serot Group

01/22/2022

Our next product spotlight is Universal Life.

Universal life policies are our teams' most commonly sold life insurance type. They allow cost savings typically associated with term policies while still maintaining the ability for permanent coverage. The real advantage to these policies is the ability to increase or decrease premium payments to achieve your desired length of coverage.

These policies are primarily known for their cash values associated with them. There is potential for gains to be made while also providing coverage on your life. Cash value typically accumulates early on and is used in your later years to help supplement premiums in covering the cost of insurance.

Universal life policies are great for almost anyone. Whether you are young and would like to build cash or are older and looking for a more cost effective solution for your needs, universal life is a great tool to use.

01/08/2022

A new fixed annuity is available and we are very excited to share!

Recently, a partner company has come to offer a 3% guaranteed interest rate on their fixed annuity with a minimum value of $100,000. Below $100,000 account value guarantees an interest rate of 2.6%. Still a great rate.

The product is structured such that you are guaranteed your rate for 5 years. After this 5 year period you have access to all cash with the ability to renew at the future interest rate. Should you choose not to renew, you are free to move the value without penalty.

This product is great for those nearing or at retirement. Anyone investing in CDs would be a great candidate.

As always, feel free to contact our office with any questions or to find out more info.

Contact Serot Group for a quote or assistance

01/03/2022

Our next product spotlight focuses on indexed annuities. This is often times the best product available for those who want market upside with little or no downside or in order to supplement/produce retirement income.

Annuities are often the answer as many approach retirement or find themselves with a need for cash growth/income without the risk of the traditional stock market. Indexed annuities are the best of both worlds. As with any annuity, cash can come as a lump sum payment, a series of payments or be rolled over from retirement accounts without penalty.

What makes indexed annuities different from others?

The primary reason anyone would want an indexed annuity is the ties to the stock market, typically the S&P 500, to get better returns than you might otherwise. The most common method to determine your interest rate is via a "cap" rate. As mentioned before, there is often no risk to your account value in the event of negative market returns. The way this can be promised is by limiting your upside as well.

~"Cap" Method~
This method of determining interest rate is often done on a yearly basis. As most products are tied to the S&P 500, this method utilizes a cap to determine your gains. At present, you can find a cap around 4.5-5% depending on product. This means that gains track the stock market to a "cap" of lets say 5%.

ex. $100,000 in hypothetical annuity.
Market decreases 15% over the year:
due to our protection from loss we would change our value 0%. At the end of year we would still have $100,000.

Now, if the market increases 10% over the year we would increase the value 5% to $105,000 as our gains are capped at 5%.

This is a great way to find decent interest rates with little downside. It is also a great way to play the market with a lot less risk.

12/29/2021

Our first product spotlight is focusing on term life insurance. With this we hope to touch on the basics of each product as we shine our spotlight on them. As always you can reach out to our team with any questions.

Term life is probably the most straightforward class of coverage. You simply select a death benefit amount then pay the premium necessary for the time you elect to be covered. Common term lengths are typically 10, 15, 20 or 30 years. Some carriers have now added the option for a 40 year term policy for those under a certain age threshold.

example: a $500,000 term policy for 30 years of coverage may cost a 35 year old female about $29 monthly. Over the next 30 years, so long as that individual pays their premiums they will have $500,000 in life insurance coverage payable on death. After 30 years this policy would no longer provide any death benefit or require any premiums unless the policy is converted. Converting is the ability to turn a term life policy into some sort of permanent life insurance. Each product is different in if/how it can be done.

Please see our website serotgroup.com under “Life Insurance” for a term price estimate chart by age & s*x.

When is term insurance right for you?

Because term has a set start and end date it’s often used during important times in someone’s life. Common lengths would be 20 years in the event of a newborn child, 30 years during the life of a mortgage and many other lengths during a family‘s most vulnerable financial times. It is the most commonly supplemented type of policy. Perhaps your needs are best met with a permanent policy with an additional term policy during some of those years.