COVID-19 woke up a lot of people that didn’t have proper financial protection because they didn’t know-how. Most people store cash aside, but realized after the pandemic that it is very important to have a financial plan to build and preserve wealth.”

Annie Yan-Case, a financial planner for World Financial Group, has been in the financial industry for over 20 years where she managed fortune 500 companies, banks, mortgage companies, and individual finances daily. Annie started with being passionate about improving her finances and obtained her financial licenses. She was then able to help her clients, friends, and family protect and preserve their wealth to better prepare for retirement.

In her professional experience, understanding savings and budgeting are very important factors in every aspect of life. She starts with a financial checkup assessment Annie Yan – Case, a financial planner for World Financial Group, has been in the financial industry for over 20 years where she managed fortune 500 companies, banks, mortgage companies, and individual finances daily.

Annie started with being passionate about improving her finances and obtained her financial licenses. She was then able to help her clients, friends, and family protect and preserve their wealth to better prepare for retirement. In her professional experience, understanding savings and budgeting are very important factors in every aspect of life. She starts with a financial checkup assessment to establish a budget so her clients can find cash flow to manage personal debt, build 6–9-month emergency funds, and base her client’s goals and needs to customize their plans.

Let’s talk about protection. The three main types of life insurance are whole life, universal life, and term life insurance. Each serves its own unique purpose for unique circumstances.

First and foremost, life insurance exists to pay a death benefit to your chosen beneficiary(s) when you die. Some offering a living benefit nowadays. It’s all about the clients’ needs. Term life insurance offers inexpensive death benefit protection for those who have a finite need. It works particularly well for a primary breadwinner that needs to make sure their income is replaced for their family when they die.

In most cases at the end of a 10, 20, or 30-year term, your level is fixed and the affordable premium is over and so you may renew your coverage but at a greatly increased cost. Whole life insurance is great for those with a higher amount of discretionary income, a long-time horizon, and the desire for safety with strong guarantees.

Universal life insurance is a fast-growing product due to its index strategy, is infinitely flexible, and can offer better returns on cash value over time if designed, executed, and managed properly. The key part of IUL (Indexed Universal Life) is that the cash value is modeled on a certain index, such as the S&P 500. The policy owner is not directly investing in the index.

The cash value of the policy is credited with the interest rate based on the performance of the index. You can earn growth based on the index up to a ceiling maximum, called a cap, for example, 13%. However, if the index drops, you have the safety that it won’t go lower than the minimum floor, for example, 0%. So if the S&P 500 index drops -20%, you get 0% interest credit. That’s the minimum floor, which means your cash value receives no interest credit during a down market. And if the index gains 15%, your interest credit will be capped at 13% as set by the policy.

The Index Universal Life strategy:

In an effort to cut down losses, some insurance products introduced a new interest crediting strategy using market indexes such as S&P 500:

Example 1: $100.00 per year is put into the account:

Example 2: Same amount, but no negative return:

Please note that the above examples are for conceptual explanation purposes. They don’t include fees, costs, or charges. Thus the actual result will be lower.

** The S& P 500 is a broad measure of the US stock market. Indices [Indexes] are unmanaged, and one can invest directly in an index.

** Please be advised there are situations where the caps may limit the potential upside.

Empowering WIP Conference

“I attended the WIP Conference as both a speaker and an attendee in 2019 and was amazed that the topics covered all aspects of life and how to take that life to the next level personally, professionally, and financially. The conference teaches the importance of personal self-care first to take care of others better.”

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