Services We Provide

If you are nearing, or in, retirement you might be concerned about outliving your assets. Annuities are designed specifically to address that concern. Annuities are a contract with an insurance company in which an individual, or couple, give funds (premium) to an insurance company and the company is obligated to pay them back at a certain time, or over a period of time. The original form of annuity was based on payments being paid out over the lifetime of the individual no matter how long they lived starting when the funds were paid to the insurance company. This is referred to as an “Immediate Annuity”. While that is still available, annuities have evolved and there are other annuities with more flexibility. Another important benefit of annuities is that your policy value grows tax deferred. This means you don’t pay taxes on the interest earned until you begin receiving payments or make withdrawals. This feature allows your money to potentially grow faster than it would in a taxable account, making annuities an attractive option for long-term retirement planning. It also makes them attractive for rollovers. While you don’t get any additional tax advantages, you do maintain the tax deferral element of the original plan. We can help you assess your situation, how annuities might help and find the ones to fit your need.

Typically, when people consider purchasing life insurance, they only contemplate the death benefit and how much the policy will cost. But life insurance can have other useful benefits worth considering. Secondary features such as a “cash value accumulation” may be beneficial years after the initial purchase. In addition, life insurance proceeds are tax free to the beneficiary. Other uses for life insurance can include business needs and estate planning strategies. The purpose and length of time needed are important factors. Deciding which type of policy fits your needs can be daunting. We’re here to help.

With the ongoing debate over the future of Social Security, and the fact that fewer companies offer pensions, many people are concerned with preserving their assets and not outliving them. Fixed annuities can address some of these concerns. A fixed annuity is a contract with an insurance company that offers you guaranteed minimum interest rates, guaranteed death benefits, tax deferral, and the availability of different income options.

One popular type of annuity is the Fixed Index Annuity (FIA). These are designed to earn interest until you decide to take income. The interest credited to Fixed Index Annuities is a fixed rate and, or, linked to the performance of one or more external market indexes. Fixed Index Annuities are designed to meet retirement and other long-term goals. They provide guarantees against the loss of principal and credited interest and offer the reassurance of a death benefit for your beneficiaries.

FIAs are appealing because they guarantee that a downturn in the market index cannot decrease your contract values. For those people that are averse to risk, a Fixed Index Annuity may be an appropriate solution. We have thorough knowledge of the various crediting methods available and can help you select the FIA for your situation and goal objectives. ​

Comprehensive Long-Term Care Insurance (LTCi) provides nursing home care, home health care, adult day care, and custodial care. According to the U.S. Dept. of Health and Human Services’ National Clearinghouse for Long-Term Care Information (www.longtermcare.gov, 4/12/12), almost 70% of people over age 65 will need LTCi at some point. Many people think that our federal and state governments will provide for their Long-Term Care needs. Unfortunately, Medicare doesn’t pay for most Long-Term Care services. California’s state program (Medi-Cal) does pay for them, but only for people with very low savings and income. This means that some people would have to deplete the majority of their assets before they would qualify. Therefore, Long Term Care insurance can also be thought of as an asset protection strategy. ​

Note that the guarantees are based on the financial strength and claims paying ability of the insurer. Early withdrawals will reduce the contract values and may result in the loss of principal and credited interest due to surrender charges. Any distributions are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty.

EFM Insurance Services does not provide tax or legal advice. You are encouraged to consult your tax advisor or attorney. ​