Many of you might have purchased life
insurance at some point because someone depended on you financially and you are
a responsible person.

But what if you were sold a permanent
policy that you don’t need anymore, if you ever needed it. There are different
types of permanent insurance, but this article focuses on whole-life insurance.

Generally speaking, you don’t need
life insurance when you no longer have dependents or you are financially
independent. For this reason, there are a lot of people out there who own
whole-life insurance and do not need it anymore.

Of course, there are always exceptions,
so you must do a proper analysis of your unique circumstances. You’re probably
asking yourself why so many people own it if they don’t need it. One reason is
the significant economic incentive life insurance agents have to sell it.

Conflict of Interest

A simple example illustrates this
point. Life insurance agents earn a percentage of the premium you pay as a
commission. Term insurance premiums are worth significantly less than
whole-life premiums. An agent can make significantly more money by selling you
permanent insurance than term insurance.

This is perfectly legal even if you
don’t need it, because insurance agents do not have to act in your best
interest, unlike a Fiduciary financial advisor. They are
simply doing what any sales-person would do.

Fee-Only advisors are legally required
to act in your best interest and don’t even own the licenses required to earn a
commission, thereby eliminating this conflict of interest.

Your Options

So, what are your options if you
already own whole life insurance and do not need it anymore? Thankfully, you
should have several dividend options and non-forfeiture options. As you’ll see,
the best option for you will likely depend on your specific situation.

You can try the
following dividend options:

Receive as Cash

When you need cash flow, you can ask the
insurance provider to send you a check in the amount of the dividend.

Reduce Premium

You can also use the dividend to
reduce the amount of premium you pay out of pocket. This option can make sense
when you want to keep the policy but reduce your cost.

Purchase Paid-Up Additions

Another option is to use the dividend
to increase the cash value and death benefit of your policy. This can make
sense when you have significant cash flow and are looking to maximize the size
of your policy.

Accumulate at Interest

Perhaps you want to leave the dividend
with your insurance company to earn interest in a separate account. Make sure
you evaluate all alternatives to maximize your return.

Extended Term

You can also use the dividend to buy a
one-year term policy in addition to the existing policy. The amount is
determined by the size of the dividend. This can make sense when you need more
death benefit and the terms of this option are more favorable than purchasing a
separate policy.

There
are several non-forfeiture options as well.

Cash Surrender

If you’d rather just cancel the policy,
you can accept whatever cash value may be available. This can be a taxable
event if the cash value is more than your basis. This option can make sense
when you do not need the death benefit anymore and have a need for the cash.

Reduced Paid-Up

You can also reduce the cash value and
death benefit, which will allow you to keep the policy without paying any more
in premium. Reduced paid-up can make sense when you have a need for some death
benefit.

Automatic Premium Loan

In another option, you can allow the
cash value to pay the premium. This can make sense when you need the full death
benefit but may not be able to continue paying the premium out of cash flow. Be
careful with this option because it could result in a policy lapse and severe
tax consequences.

Extended Term

You can convert your death benefit
into a term policy and eliminate your cash value. The length of the term would
be determined by the amount of cash value. This option can make sense if you
need the full death benefit for a limited time.

1035 Exchange

There is one other option that doesn’t
fit into the categories above and is often overlooked. The IRS allows you to do
a 1035 exchange of a life insurance policy to an annuity or long-term care
insurance. This means you can convert your policy without tax consequences.

Think Your Options Through

To recap, you may or may not still
need a death benefit. Even if you do, your policy may or may not still make
sense for you. A Fiduciary advisor without a commission conflict of interest
can help you evaluate your options.

Insurance policies are contracts and
can be drastically different, so it is important to know all the options
available to you. The best course of action depends on your need for a death
benefit, available alternatives, and the specifics of your policy.

Download Robert’s e-book 9 Mistakes to Avoid When Retiring Solo for more retirement guidance from a Fee-Only advisor.

Have
you paid for a whole-life insurance? Do you still need it? Are you keeping it?
What alternatives have you explored? Please share your thoughts or tips with
our community!

Lala Kent’s Pink Gown at Katie & Tom’s Wedding in Vegas

Season 8 Episode 15 Vanderpump Rules Fashion

Lala Kent’s pink gown at Katie Maloney and Tom Schwartz’s wedding part deux in Vegas is classy af. I always love a Lala lewk because whether it’s a little on the scandalous side or more on the classy side it’s ALWAYS on point.

This particular lewk reminds me of the bridesmaids dress that I wore in my friend’s wedding over the summer. I was absolutely obsessed with the off the shoulder cut. Seeing Lala wear her’s a little higher up on her shoulders made me regret not thinking to do that for a little more movement capability. When it came to the reception I couldn’t move my arms enought to go full force on the dance floor, which in retrospect was possibly a good thing.

Speaking of weddings, there must be something in the water at SUR because wedding bells are ringing all over the place. Lala must have been very excited during this trip because her big day is up next. And although they’ve had to postpone their big day because of COVID 19, I can’t wait to see Randall turn her into a wife.  Then I’ll just be waiting for Andy turn her into a Housewife.

Sincerely Stylish,

Jess

Click Here To Shop Her Pink NDB Samuel Gown in Limited Sizing

Photo Credit: @lalakent

Originally posted at: Lala Kent’s Pink Gown

Braunwyn Windham-Burke’s Leopard One Shoulder Dress on Instagram

Real Housewives of Orange County Instagram Fashion 2020

According to Instagram Braunwyn Windham-Burke & Co. found a very creative way to celebrate their friend Bianca’s birthday over the weekend by giving her a drive-by, Tiger King style hello complete with BWB serving up some serious big cat energy in this leopard one shoulder dress. A lewk which, needless to say, we totally can’t wait to copycat once we’re let out of the cage and back into the wild. 

Fashionably,

Faryn

Click Here to Rent Her Jonathan Simkhai Dress

Photo: @BraunwynWindhamBurke

Originally posted at: Braunwyn Windham-Burke’s Leopard One Shoulder Dress

Hotel chains will streamline, airlines consolidate, and sadly, some tour operators will close their doors. It might be time for the travel industry reboot.

I refuse
to stress over things I cannot change. I believe we are a few months away from
getting back on track in whatever form travel will take. Hopefully, the road
will be paved with more authentic journeys of discovery and less mass tourism.

My Vision is a World of Travelers, not Tourists

Let’s appreciate what makes us different and similar without judgment, leave our preconceived notions at home, open our minds, and learn what every destination and culture can teach us.

Imagine returning home from our
travels with understanding and new perspectives to share, rather than trinkets,
souvenirs, and selfies. You might be surprised at what you see when not looking
through the lens of a cell phone.

Show gratitude for the sights we are
privileged to enjoy, respect sensitive environments so as not to leave a
footprint, and the knowledge that wildlife should be observed in their natural
habitat, not used as a form of entertainment.

Is Your Life a Page Turner?

A very
long time ago, I wrote the article “If Your Life was a Book, What Would it Look
Like?” Here is an excerpt:

“You started composing the Book of You the moment you were born. What does it look like? Better yet, what do you want it to look like? The adventurous romp of Jonas Jonasson’s The 100-Year-Old Man, romantic Pride and Prejudice by Jane Austen, Dan Brown’s international murder mystery The Da Vinci Code, or the political intrigue of Tom Clancy’s Jack Ryan series? As you can imagine, I saw myself as the fanciful sidekick of the handsome Phileas Fogg in Jules Verne’s Around the World in 80 Days.”

Use Your Imagination

This article is a bit different in that I am going to ask you to use your imagination. If you have forgotten how to do that, your grandchildren can remind you. I may never physically travel to New Guinea to sit quietly with the orangutans, but my imagination can whisk me there in seconds!

Delights of Coming Attractions

Read,
watch, and imagine the joys of future travel. Just like the book The Secret,
if you can see it in your imagination, it can happen! The journey begins the
moment you start to anticipate and prepare for your next adventure. Have a peek.

Virtual Travel

South America

In the world’s driest desert, this otherworldly place will transport you to another planet: Relais & Châteaux, San Pedro de Atacama Desert, Chile.

And if you’re into love stories, this one will take you to the end of the world: Awasi Relais & Châteaux, Patagonia.

North America

Forget expensive Mardi Gras – parades and parties are an everyday event in the Big Easy. Visit the real New Orleans by tour bus and on foot. Music, art, cuisine, and that delicious chicory coffee and sugar-coated baguettes!

The
magnificent mansions and lavish gardens of the Garden District, oak-shaded
streets, Lafayette Cemetery, boutiques and antique shops. My kind of town!

May I also suggest a fall foliage cruise from charming Quebec City, Canada to New England, USA. And when in Canada, why not visit Vancouver Island. This is my favourite place on earth!

Europe

If you haven’t been, try river yachting in France. There is a spectacular canal cruise through Burgundy you can enjoy on the Belmond Hirondelle.

Re-live the Golden Age of Travel aboard luxurious railway journeys. One option is Ireland’s Belmond Grand Hibernian train.

For those who are fascinated by the scenic north, with its fjords and unforgettable nature, the Hurtigruten Highlights of Coastal Norway may be the voyage of a lifetime.

And though Italy may never be the same after the pandemic experience, it will get back on its feet. And then you can enjoy a Behind the Scenes journey of Sicily, just as Steve McCurry saw it through his camera.

Africa

If you have a spirit of adventure, nurture it in the vast lands of this hot continent. The Skeleton Coast of Africa is definitely on my bucket list!

Australia and the Pacific Islands

How would you like to be an explorer in Australia? You can discover the natural beauty of the magnificent Kimberley or enjoy Tahiti under sail.

Recommended Travel Books

Many
people love to read books in addition to all the video material that exists
around the Internet. Here are several choice offerings you can explore if you
love reading travel picture books:

• Peru: Turn Right at Machu Picchu by Mark Adams
• Canada: The Shipping News by Annie Proulx
• Colombia: Short Walks from Bogota, by Tom Feiling
• Great Britain: One Hundred & One Beautiful Towns in Great Britain by Tom Aitken

I’ll wrap this up with a video produced by Butterfield & Robinson – bike, hike and walking company extraordinaire – created to view on Facebook to bring you joy and hope during this difficult time.

What
is your favourite travel book? Please join the conversation and share your
thoughts on what changes you’d like to see in the travel industry.