Month: February 2020

Why Do I need Life Insurance?

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Why Do I Need…
Life Insurance?

Life insurance isn’t a pleasant thing to think about, and it may seem like an unnecessary expense. But if you have dependents who rely on you for financial support, then life insurance is really about protecting them in case something happens to you. Your designated beneficiary would collect a financial benefit upon your death.

Youth minister Preston Newby and his wife, Tara, met during college and were soon married. After visiting their local insurance agent to purchase auto and renters insurance, they decided to look into life insurance policies. With a 19-month-old son and another child on the way, life insurance policies made a lot of sense in case anything ever happened to either of them. Unfortunately, this worst-case scenario became reality a couple of months later.

While driving to Canada to visit Tara’s parents, a group of cars up ahead of the Newbys slammed on their brakes and veered to the right side of the road. After coming to a stop, Preston hopped out of the car to find out what happened. One of the cars had hit an elk, and when Preston realized a passenger was bleeding, he ran back to his car to tell Tara to dial 911. As she reached for her phone, a car flew by and hit Preston, killing him instantly.

Thanks to the life insurance policy the Newbys purchased months earlier, Tara was able to pay off the family’s existing debt and provide for her two young sons after Preston’s death.

Whether you are 25 or 55, a life insurance policy gives you the peace of mind that should the worst happen, your loved ones will be taken care of.

Even if you already have life insurance through your employer, you may be underinsured. Call Schechner Lifson Corporation today—we can work with you to ensure that there aren’t any gaps in your current coverage.

SECURE Act (Setting up Every Community for Retirement Enhancement

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SECURE Act (Setting up Every Community for Retirement Enhancement) signed into law December 20, 2019 is the biggest piece of retirement plan legislation since the Pension Protection Act of 2006. The Act is designed to:

Encourage employees to save more for retirement by

• Repeal of age limitations for IRA contributions
• Moved the required beginning date for Defined Contribution Plan (includes 401(k) Plans, Profit Sharing Plans and IRAs) from 70 ½ to Age 72
• Make retirement savings available to more people by expanding 401(k) employee coverage to part-time employees working 500 hours annually for the past 3 years
• Requires lifetime income disclosures in addition to simply showing your account balance
• Makes it easier for your employer to offer lifetime income options

Encourage more businesses to offer a retirement plan to their employees

• Tax credit for retirement plan start-up costs
• Makes retirement plans affordable for small businesses

The Act also eliminates “Stretch” IRAs with certain exceptions which include a surviving spouse and disabled/chronically ill beneficiary. We do have some ideas for stretching the IRA wealth into the third generation. Contact Michael Schechner (michaels@slcinsure.com) for more information.

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