Insurance & Annuities

At Mustard Seed Financial, we see insurances and annuities differently than most financial professionals.  The commissions associated in this category of products, make overselling them tempting, even to professionals.  As a fiduciary, we are bound to a higher standard, one that takes into account your long-term financial best interests.

We take an approach like a Dr. would take when prescribing medicine… 

“This right insurance, for the right client, at the right time.”

Annuities and Life Insurance can be helpful financial tools when used correctly.  Both financial products are designed to provide protection and financial security, but they serve different purposes and offer distinct benefits. Let's explore the benefits of each:

Benefits of Annuities:

Guaranteed Income:

Annuities can provide a steady stream of income for a specified period or for the rest of your life. This can be particularly valuable during retirement, ensuring you have a stable income source regardless of market fluctuations.

Tax Deferral:

Annuities offer tax-deferred growth, meaning you won't pay taxes on your earnings until you start withdrawing funds. This can help your investments grow more quickly over time.

Diversification:

Some annuities offer investment options, allowing you to diversify your portfolio and potentially achieve higher returns.

Longevity Protection:

Annuities with lifetime income options ensure that you won't outlive your savings, making them a tool to address the risk of longevity in retirement.

Death Benefit:

Many annuities come with a death benefit that guarantees that your beneficiaries will receive a minimum payout, even if you pass away before annuitization or before the full value of the annuity is paid out.

Principal Protection:

Fixed and indexed annuities often offer protection of your principal investment, shielding you from market downturns.

Benefits of Life Insurance:

Financial Protection:

Life insurance provides a death benefit to your beneficiaries upon your passing. This benefit can be used to cover funeral expenses, replace lost income, pay off debts, or meet other financial obligations.

Estate Planning:

Life insurance can be a valuable tool in estate planning, helping to provide liquidity to cover estate taxes and ensuring that your heirs receive the assets you intend them to without having to sell off valuable assets.

Business Continuation:

For business owners, life insurance can ensure the continuity of a business in the event of a partner's or key employee's death. It can provide funds to buy out a deceased partner's share or cover losses resulting from the death of a key individual.

Cash Value Growth:

Permanent life insurance policies (such as whole life and universal life) accumulate cash value over time. This cash value can be accessed through loans or withdrawals, offering a source of funds during your lifetime.

Tax Advantages:

Life insurance death benefits are generally not subject to income tax, and the cash value growth within permanent policies grows tax-deferred. Additionally, policy loans are often tax-free.

Charitable Giving:

Life insurance can be used to make a charitable gift, allowing you to provide for a cause you care about while potentially enjoying tax benefits.

It's important to note that both annuities and life insurance have associated costs, fees, and terms that vary based on the specific product and provider. The suitability of these products depends on your individual financial goals, risk tolerance, and overall financial situation. Before making any decisions, consult with a fiduciary who can help you determine the most appropriate products for your needs.