If you are looking to learn more about life insurance, annuities, disability or long term care Advanced Planning Services can help refer you to an agent that will take care of you and teach you what you need to know. They can also get you a quote if you are ready to begin the process.

Email us at underwriting@apshome.com or call us at 619-220-8116 ext. 118 to be referred to a qualified advisor.

Want to learn a little bit about insurance first? Read our life insurance 101 below to learn the basics about life insurance and how you can use it to meet your needs.

Life insurance provides protection against financial loss resulting from one’s death. It is an insurance company’s guarantee to pay your beneficiary a specific amount of money when you die in exchange for premium payments for your life insurance policy.

Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents won't have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that there is no federal income tax on proceeds paid to beneficiaries. Here are some reasons people buy life insurance.

Death Benefit Uses:

• Replace income the family would need to maintain their standard of living.
• Pay off a mortgage loan and other personal/business debts.
• Create funds for children & grandchildren’s education.
• Pay final expenses, such as funeral costs and taxes.

Life insurance provides the extra security for those who matter the most to you. Life insurance is a cost-effective way to help those you care about maintain their quality of life, repay debt, and secure their financial future. Insurance also supports your financial strategy in other ways such as retirement accounts and cash reserves. Here are some reasons people invest in life insurance to secure their financial goals.

Financial Goals:

• Maintain financial security and protect the ones in your life that matter the most.
  You have the peace of mind that those in your life who mean the most are protected from any potential financial burdens.


• Capitalize on tax-advantages in their policies.
  Some life insurance policies provide the opportunity to accumulate cash values on a tax-deferred basis. This can help reduce the current tax liabilities today.


• Transfer assets tax free.
  Your beneficiary’s will pay no income taxes on the proceeds of your life insurance policy.


• Preserve accumulated wealth for heirs.
  Historically, some life insurance policies can help provide your lifetime needs without the fluctuation and risk of the stock market. There are several different types of plans that provide strong guarantees on the future performance of the policy. These types of accounts create additional sources of funds in addition to your retirement savings.


• Build future retirement income.
  Life insurance policies are a vehicle that provides the opportunity to build up cash values in a tax-deferred environment. Most policies have a guarantee on the money being built up, so that the policy owner does not experience dramatic losses in their cash accounts. Creating a diversified portfolio through the right life insurance policy can create a strong financial strategy.


• Charitable/organization donations.
  Since the owner of the policy controls where the money goes, one can make a significant contribution to a group that they care about. Life insurance is another way to transfer a sizeable gift to a group that you care about.

Term Insurance:
Term life insurance is also referred to as “temporary insurance”. Term life insurance provides protection for a stated period of time. Every year a premium is paid to cover the risk of death during that particular year. Term insurance has no built up cash value in the policy. The only way to collect anything is to die during the term. If death occurs, the beneficiary collects the death benefit of the policy, free of income tax. In general, term life insurance premiums are initially lower than permanent policies, but increase as you get older.

Benefits of Term Insurance:

• Relatively inexpensive over a shorter time period.
• Often can convert to a permanent insurance policy.
• Often used to cover short-term needs and debts.

Permanent Insurance:
Permanent can provide protection for your entire lifetime, while building cash value and earning interest tax-deferred. This cash value can be borrowed against or withdrawn to help meet future financial goals, such additional retirement funds, emergency cash reserves or a child’s education. If you want lifetime coverage, greater financial flexibility to adjust coverage to your changing needs and access cash values. Then permanent insurance may be your best solution.

Benefits of Permanent Insurance:

• Tax-free growth on cash value.
• Access to cash for emergencies and opportunities.
• Flexibility to adjust future premiums and coverage amounts.

Permanent insurance offers several different product choices for you to protect your loved ones and accumulate cash values. The following are several types of permanent plans:

Universal Life Insurance
Universal Life Insurance is a flexible-premium product that has an adjustable death benefit that accumulates cash value. Universal life insurance provides permanent coverage for as long as you live and continue to make the required premium payments. The flexibility of this policy allows you to change the amount of insurance as your needs change over time. Universal life insurance is a good choice for securing you long-range goals.

Whole Life Insurance
Whole life insurance provides permanent coverage for as long as you live and continue to make timely premium payments. The premiums are designed to remain level over time, while accumulating cash values on a tax-deferred basis. These guaranteed cash values can provide money later on in life to help in times of emergencies or long-term financial goals. Whole life insurance is a good choice for securing your lifelong insurance needs.

How much do I need?
It is important to properly determine the amount of life insurance coverage, because the major reason you buy life insurance is to cover the financial effects of unexpected or untimely death. Some financial professionals recommend that an individual should provide protection as follows: 5-7 times your gross income, plus your mortgage, debts and funeral expenses.