Permanent life insurance has similar benefits to a Roth IRA … and that’s just a start

You may have heard of a Roth IRA as a good option for retirement planning. Its favorable tax treatment allows after-tax contributions, tax-deferred growth, and tax-free distributions at retirement. The drawback? A Roth IRA is not available for everyone and has limits to how much you can contribute.

But another vehicle that may be able to provide you with features similar to a Roth IRA – along with other benefits – is permanent life insurance. Take a closer look at how permanent life can differ from a Roth IRA:

Eligibility

Life insurance doesn’t have income limitations like a Roth IRA. The income limit for a Roth IRA is subject to change annually.

Contributions

Roth IRAs also carry annual contribution limits which are also subject to change annually and can vary by the age of the plan participant. But life insurance policies can be structured to accept much more in premium dollars than a Roth IRA contribution limit. This can be helpful if you’re trying to catch up and build savings before you retire.

Volatility

Roth IRA contributions may be subject to market risk depending on the investment options you selected. If the markets are down, your Roth IRA values could go down, too. You can own permanent life insurance policies that never decrease in value and are not subject to market volatility.

Distributions

There are restrictions on when and how you can get earnings out of a Roth IRA. With life insurance cash value, you can access your available policy values when you need them, without penalty.

Next steps

This is just the start! Whether paired with or as an alternative to a Roth IRA, permanent life insurance can help provide protection, flexibility, and potential for your retirement. Talk to your financial professional to see if permanent life insurance should be part of your overall financial strategy.

The purchase of a permanent life insurance policy is a long-term commitment and is subject to underwriting approval. Life insurance policies contain exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For complete details of coverage, contact the company for additional information. Before purchasing any permanent life insurance policy, you should request a policy illustration and carefully compare both the guaranteed and non-guaranteed elements.

Life insurance cash values grow without being subject to current taxation. Cash values can be accessed by way of policy loans without being subject to taxation. However, if tax-free loans are taken and the policy lapses, a taxable event may occur. Withdrawals (partial surrenders) and loans from life insurance policies classified as modified endowment contracts may be subject to tax at the time the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals and loans reduce the death benefit and cash surrender value. Always consult with a tax advisor regarding your particular situation.

Products issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features, and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

What to expect when applying for life insurance

You’ve worked with a financial professional and are ready to apply for life insurance coverage with AuguStar Life. What’s next? While your financial professional will help guide you, here’s a quick overview of what you can expect.

Step 1: Complete your application

The answers on your application serve a few important roles. First, it helps us understand the type of protection you want to put in place, including the amount, type of coverage, customized features, and beneficiaries of the policy. Second, it serves as a roadmap to help our underwriting team quickly and efficiently evaluate your request for coverage. We’re here to help you shoulder important financial risks posed to your family or your business if you’re no longer there. To do that, we need to be able to understand the risks by asking you questions about:

Your occupation, sources of income, net worth, current debt and financial obligations
Any life insurance coverage already in place
Your medical history, including conditions you’ve been or are being treated for, hospitalizations, and prescriptions
Whether members of your immediate family (parents and siblings) have experienced specific medical conditions
Recent or scheduled foreign travel
Personal habits (like smoking, drinking, or recreational drug use) or activities (like scuba diving or mountain climbing) that impact your risk profile

All information you provide is collected, stored securely and kept confidential. While some of the questions might feel a bit detailed or personal, it’s important that you answer them honestly and completely. We want to protect your interests, and the interests of all of our policyholders, so we can maintain fair and competitive prices for protection. Additionally, to protect our policyholders, there are provisions that allow us to cancel or deny coverage if it’s determined that answers provided were fraudulent.

Step 2: We review your application

This step is known as underwriting. Our team will evaluate the information provided in your application, and based upon that information, including your age, health history, amount of coverage requested or other factors, they may request an exam. That exam may include:

Measurements of your height, weight, pulse and blood pressure
A small blood and urine sample
A review of some of the information submitted on your application

If an exam is required, your financial professional will help you schedule it at a time and place that is convenient for you.

Sometimes, we may request additional information to better understand your risk profile. For example, we may order copies of your medical records, documentation that verifies financial information or additional tests, such as an EKG. Occasionally, this part of the application process takes the longest, as we cannot always control how quickly we’ll receive the records we’ve requested.

These pieces of information help underwriters decide if you are eligible for coverage, and if so, the right rates to charge based upon your risk profile.

Step 3: Review your offer for coverage

Once approved, we’ll give your financial professional the details of our offer for coverage to review with you. You’ll have time to review the policy, ask any questions you have, and see whether any adjustment may be made to the coverage before putting it in place. If everything meets your expectations, the financial professional will deliver the final policy to you and help you complete the final steps to put the coverage in place.

We’re here for you

We want you to be confident you’ve selected the right coverage, and have the peace of mind that comes with understanding your policy and the value it can provide for you and your loved ones.

Securing a loved one’s future with a special needs trust

When you’re the parent or caretaker of an individual with special needs, thinking about how your loved one will be cared for in the future is a concern. This is especially important if you want a level of care that goes above and beyond what may be provided by government benefits. A special needs trust funded with a life insurance policy may be a great option.

About special needs trusts

A special needs trust is designed to help you leave behind assets with the assurance they will be used to support an individual with special needs.

You and other family members can contribute to the trust and it can help take care of any supplementary needs the individual may have that are not covered by government benefits, without jeopardizing his or her eligibility for need-based benefits from Medicaid or Security Supplemental Income (SSI).

This is a big consideration because those benefits programs typically require recipients to have no more than $2,000 in countable assets and place limits on their income (varies by state).

Benefits

The special needs trust is designed to coordinate with other programs, thereby helping to ensure the individual remains eligible for state and federal government benefits.
A special needs trust can help assure the caregiver that the financial needs of his or her loved one are met.
The cash value from the life insurance grows tax deferred and is accessible during the life of the caregiver via loans.¹
Proper planning provides for the individual’s continued support, quality of life, and dignity.

How it works

A special needs trust is typically funded with a permanent life insurance policy on the life of the caretaker(s) of the person with special needs.
The cash value in the life insurance policy accumulates on a tax-deferred basis and can be accessed by the trustee on a tax-favored basis (if the policy remains in force), via policy loans.¹
At the insured’s death, the death benefit is paid to the trust and the trust coordinates the funds with government benefits to provide financial resources for the care and support of the person with special needs. The death benefit of the life insurance policy passes to the trust on an income-tax free basis.
The trust can provide additional funds to enhance the quality of life of the person with special needs over the basics of food, shelter, medical care, and education that may be provided by government benefit programs.

Considerations

The strategy will require the assistance of an attorney who specializes in special needs planning, along with your financial professional.
The individual with special needs generally should not be a designated beneficiary of any retirement accounts, life insurance, annuity contracts or brokerage accounts. These financial assets could jeopardize eligibility for government benefits.
When a special needs trust is used, the trust beneficiary cannot have direct access to assets — trust distributions should be at the trustee’s sole discretion.
Life insurance may be needed on the lives of the primary caregiver AND the primary breadwinner, if not the same person.

Next steps

AuguStar Financial offers support for you in planning for individuals with special needs, including a needs calculator and an informative Special Needs Planning brochure.

Contact your AuguStar financial professional today to start planning for your loved ones with special needs.

¹ If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

This material provides general information that is designed to be educational in nature and is not intended as specific tax or legal advice to any particular individual nor the law of any particular state. Please seek the advice of a qualified tax or legal professional for your specific situation.

Five tips to help you get through a divorce

Going through a divorce can be one of the most stressful and emotional events a person can experience in their lifetime.

While this change in life can be emotionally draining, it does not necessarily have to be financially draining.

Here are five tips to help make the divorce process less stressful.

1. Start gathering important information

If you are getting a divorce, many — if not all — of your assets may be part of the negotiation.

To help prepare your attorney, gather:

Personal information including birthdays and social security numbers
Marriage and separation agreements with your spouse
Employment information and income for each spouse
Assets and liabilities for each spouse, including retirement assets
Insurance policies (life, health, disability, etc.)

2. Review your beneficiary designations

One important task for those going through divorce is to review your beneficiary designations before, during, and after the divorce.

For example, your attorney may advise you to change your beneficiary designations before initiating proceedings to protect your assets should you pass away before the divorce is final. Once the divorce is finalized, the divorce decree may require updates to existing beneficiary ownership designations.

3. Set a new budget

During a divorce, you may find yourself financially overwhelmed, facing new expenses and less income. Work with your financial professional to set a new budget geared toward accomplishing your current financial goals or setting new goals.

4. Talk to a tax professional

Many people underestimate how important tax planning can be during a divorce. Something as simple as the date of a divorce decree can have a huge impact on your tax filing status for the entire tax year. Understanding the different tax treatment for items such as alimony versus child support can put you in a better bargaining position during negotiations.

Your financial professional may be able to connect you with a tax professional who understands the tax rules applicable to divorce planning, which could save you money and give you peace of mind.

5. Review insurance needs

Throughout a divorce, the need for life insurance protection may change, particularly when one spouse will provide income and the other may have primary custody of minor children. Insurance ownership and premium payments may be negotiated as part of the divorce settlement.

Before the divorce is finalized, work with your financial professional to determine the amount of life insurance you will need that best covers your post-divorce financial situation.

Next steps …

Your financial professional can be an essential resource during a divorce and may be able to connect you with a network of professionals including experienced divorce attorneys, counselors and tax advisors who can provide professional assistance throughout the divorce process.

Saving for health expenses in retirement

Accounting for health care expenses in retirement may need to play a bigger role in your strategy than you realize. According to an estimate from Fidelity Investments¹, an average 65-year-old retired couple will need about $280,000 saved (after taxes) to cover those costs – and that estimate doesn’t include other health-related expenses like over-the-counter medications, dental care, or long-term care needs.

And, when factors like the rising costs of health care and inflation are taken into consideration, the amount you need will likely go up more the further you are from retirement.

Other factors will play a role too, like when you retire, your health, how long you live, and what government and employer benefits you’ll have access to in retirement. You’ll also need to consider what types of accounts you’ll be accessing to help cover out-of-pocket medical expenses. They may differ in how they’re taxed, and distributions may be considered income when you file taxes.

There may still be a gap

Even after private and government insurance benefits are considered, you may still find there’s a gap between the resources you’ll have and the resources you may need. And, for many of the reasons mentioned above, it will be hard to predict how large your gap may be.

Accounting for uncertainty with flexibility

A part of your solution for bridging this gap could be building up a flexible source of “just in case” assets for your retirement. That means having dedicated assets for your anticipated income and healthcare needs, and then having a separate pool of resources that can serve different purposes as your needs become clearer (or change) during retirement. A flexible planning tool to consider is permanent life insurance.

In addition to providing death benefit protection, the cash value in permanent life insurance can also help give you financial security when unexpected (or higher than expected) expenses arise during retirement.

Some policies also have the ability to add an additional rider that can accelerate the payment of the death benefit if the insured needs care for a chronic or terminal illness. This benefit can provide you with additional financial resources at a time when you may need them the most. (Read more about the roles life insurance can play in retirement.)

Coordination is key

The reality is that health care expenses are just one of the things you’re trying to plan for when it comes to retirement. You’re making a series of interconnected decisions that impact how and where you should save for the future.

The sooner you talk to a financial professional about accounting for health care costs in retirement, the more options you may have to efficiently and flexibly plan for those needs.

^1. Fidelity Benefits Consulting estimate; 2019

Life insurance cash values grow without being subject to current taxation. Cash values can be accessed by way of policy loans without being subject to taxation as long as the policy remains in force and the policy is not classified as a MEC.

The optional Accelerated Benefit Rider provides for a partial acceleration of the policy death benefit in the event that the base policy insured is certified by a licensed physician as being chronically ill or terminally ill. By taking an accelerated death benefit payment, a lien is created against the policy death benefit. The lien accrues carrying charges at an adjustable rate we declare. The lien, including the lien carrying charges, will be deducted from the total death benefit otherwise payable to the policy beneficiary(ies) and will reduce the cash value available for policy loans, surrenders, or the exercise of any non-forfeiture option.

The required premium for the policy must still be paid even if an accelerated death benefit is taken. If an accelerated benefit is taken and the policy lapses or otherwise terminates, a taxable event may occur. Any death benefit provided by an optional Accidental Death Benefit Rider is not available for acceleration under this rider.

Any accelerated benefit you elect to take under this rider may be taxable. Consult your tax advisor on all tax matters. Adding the rider to a life insurance policy or the taking of rider benefits may affect eligibility for certain public assistance programs and government benefits.

The Accelerated Benefit Rider is not designed to be a substitute for long-term care insurance, health insurance, or nursing home insurance. Rider benefits and features may vary by state.

Withdrawals and loans may reduce the death benefit, cash surrender value and any living benefit amount.

Consult your representative before taking a withdrawal or loan. Withdrawals and loans may cause loss of the no lapse guarantee. In addition, withdrawals may incur substantial charges and tax penalties. Withdrawals and loans will reduce the death benefit and cash surrender value. Surrender charges may apply to withdrawals. Consult your policy to see if surrender charges apply.

Certain policy loans may result in currently taxable income and tax penalties. If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the loan or withdrawal is taken and, if taken prior to age 59½, an additional 10% federal tax may apply.

If you are considering the use of policy loans as retirement income, you should consult your personal tax adviser regarding potential tax consequences that may arise if you do not make necessary payments to keep the policy from lapsing.

Where future planning meets indexed whole life insurance

There are many ways to build up assets you can use in the future. Roth IRA plans are popular in part because of their tax benefits. Assets inside a Roth IRA generally grow tax-free if the Roth has been established for at least five years and the money is taken out after you reach the age of 59 ½.¹ What’s not to like?

There’s another option that provides similar tax advantages and a few other benefits as well¹: indexed whole life insurance (IWL). An IWL policy can grow assets on a tax-deferred basis² while also providing a few benefits you may not have considered.

Protection

Life insurance provides a tax-free death benefit many times the size of the annual premium. While it can’t replace you, the benefit can provide the funding to ensure that your plans come to fruition and deliver the benefits to your loved ones just as you would have done.

Controlled volatility

When you own an IWL policy, your premiums ultimately wind up in accounts linked to market indices with a floor of 0% asset performance to protect you from steep market downturns.³ In order to provide this floor there is also a cap to the amount that can be earned inside the account. You might think of this as downside protection with upside potential.

Eligibility and contributions

Roth IRAs do have some limits based upon income, as well as limits on how much can be contributed annually. A life insurance policy can be purchased, provided you’re healthy, irrespective of how much you earn. And the only limiting factor on your premium size is the amount of death benefit purchased. Please note, that unlike a Roth IRA, your life insurance policy is a long-term commitment with premium requirements for ten years.¹

Distributions

IWL policies provide you with a variety of ways to access the money inside the policy. Working with your financial professional you can determine which one makes the most sense for you. You may even have the option to change the mode of distribution depending on your risk tolerances or the economic environment. What you get is flexibility in how you access your asset, and that’s a good thing.

When planning your future you should weigh multiple options for how you save money. A Roth IRA can be a fine asset to own, but an IWL may suit your needs more. Or perhaps owning both can make sense for you. Discuss this with your financial professional.

¹ Constellation Insurance, Inc. and its affiliates do not provide tax or financial planning advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax or financial planning advice. You should consult your own tax or financial planning advisor before engaging in any insurance transaction.

² Life insurance cash values grow without being subject to current taxation. Cash values can be accessed by way of policy loans without being subject to taxation. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

³ The deduction of any applicable policy fees may result in a loss of account value when market performance is poor.

Roth IRA contribution and eligibility requirements as of 1/1/2026.

The purchase of an indexed whole life insurance policy is a long-term commitment and is subject to underwriting approval. Life insurance policies contain exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For complete details of coverage, contact the company for additional information. Before purchasing any indexed whole life insurance policy, you should request a policy illustration and carefully compare both the guaranteed and non-guaranteed elements.

Indexed whole life policies are issued as Policy Forms ICC22-IWL-1/U and any state variations.

Indexed whole life insurance issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

A surprising alternative to education funding

You’ve probably heard of a 529 plan when it comes to saving for your child’s college education. It’s the most recognizable vehicle for college savings because of its favorable tax treatment for qualified education expenses, as well as a state tax deduction in some states. But it’s not the only option available to you.

A permanent life insurance policy can help you accomplish your college savings goals the same way a 529 plan can. But there are differences between the two that might make whole life insurance a more suitable option for you.

Income tax-free loans

The built-up cash value in your policy can be used to take out tax-free loans¹ to help pay for college expenses (or other uses) without having to worry whether they’re qualified education expenses or not.

Guarantees without market volatility

A 529 plan likely has funds tied to market returns. While that can allow your college fund to grow over time, a down market could significantly affect what you can afford when you have a need for the funds.

Timing is everything. Imagine a market downturn occurring right before your student’s freshman year.

Certain permanent life insurance policies offer you protection from market downturns. Whole life insurance provides you with guaranteed premiums, death benefit and cash value that won’t decrease based on financial market performance. Any dividends paid can be used to enhance your policy’s cash values and death benefit if used to additional paid-up insurance (known as paid-up additions).

Certain universal life insurance policies also provide protection against market downturns with a declared interest rate that builds cash value in the policy. Unlike whole life insurance, universal life insurance gives you the opportunity to stay flexible with adjustable premiums.

Options in case of disability

What if you became disabled while trying to build up savings for that college education? In the event of total disability of the insured, the optional Waiver of Premium for Total Disability rider credits a premium to the policy so that your plan for college funding stays on track.

Financial aid considerations

FAFSA® financial aid guidelines don’t currently count the cash value of life insurance policies as an asset, which means you could qualify for a higher level of aid. A 529 plan is considered an asset by FAFSA®. However, it is important to note that some colleges do view life insurance as an asset in determining financial aid.

Should the unthinkable happen

Unlike a 529 plan, life insurance provides an income tax-free death benefit to your named beneficiary which can be used to fund an education.

Sometimes there are better solutions

There may be situations where permanent life insurance won’t work for you – such as if that first tuition bill is coming up soon. It is best to purchase cash value life insurance as a college savings option when your child is young. This gives your policy time to build enough cash value to help fund college expenses. Adding an optional paid-up additions rider can significantly add to the early build-up of cash values in your policy.

Talk to your financial professional to see if using permanent life insurance is a college savings is a solution for you.

(scroll > to view the information)

	Permanent life insurance	529 plan
Potential deductible contributions	No	Via state tax in some states
Tax-free access to cash	Via policy loan as long as the policy stays in force	If for qualified education expense
Not subject to market risk	Yes²	No
Optional disability waiver rider	Yes	No
May affect financial aid amount	No	Yes³
Death benefit	Yes	No

² When utilizing whole life insurance and current assumption universal life insurance policies.

³ Applicable if owned by parents. 529 plans owned by grandparents/third parties generally do not affect financial aid or beneficiaries under current guidelines.

FAFSA^® is a registered trademark of the U.S. Department of Education.

Key Social Security facts to know

You can begin collecting Social Security benefits as early as age 62, but delaying until your full retirement age—or beyond—can substantially increase your lifetime payout. For most people retiring today, full retirement age ranges from 66 to 67, depending on year of birth. Even so, more than one in five eligible Americans choose to start benefits immediately at 62.¹

Unknowingly, many people reduce their lifetime benefit payments by thousands of dollars.

The do’s and don’ts for claiming benefits can be complicated. By educating yourself on your options, you’ll be better equipped to make the right decisions for you. Here are some key Social Security facts to know.

Who’s eligible for Social Security benefits?

In order to be eligible for Social Security benefits, you need to earn enough credits based on your work history. You earn credits when Social Security taxes are deducted from the income you earned working.

You need 10 years of work to qualify and they don’t need to be consecutive. If you stop working before you have enough credits to qualify, you don’t need to worry about losing the credits you’ve earned. If you begin working again, you can add any new credits to your total.

The monthly benefit you’ll receive is determined by your age when you start your benefits and your average earnings during your working years. Higher lifetime earnings generally mean higher benefits, although there is a cap.

Calculating benefits

You may be wondering how Social Security benefits are calculated. The formula uses the 35 years in your employment history in which you earned the most (adjusted for inflation and any changes in your wages during those years). If your work history is less than 35 years, the remaining years with no earnings will be factored in at zero dollars.

You can increase your benefit by replacing any zero-dollar years by working longer, even if it’s just part-time. Fortunately, no lower-earning year will replace a higher-earning year because the benefit is based on the highest-earning 35 years. If you do happen to make more money, your benefit will be increased, even if you are still working while taking your benefit.

Your benefits may also be increased annually to account for increases in cost-of-living expenses. Any increases will be based upon the Consumer Price Index for that year, a measure of the change in prices typical consumers paid for retail goods and services.

Age matters

Determining what age to begin receiving Social Security benefits is the single biggest factor that will determine the amount of benefits you receive during retirement. Generally, the longer you wait to begin payments, the larger they will be. To understand the impact of timing on Social Security benefits, consider these factors:

Taking benefits early could mean locking in a lower benefit amount. You can collect Social Security as early as age 62, but your benefit could be permanently reduced by as much as 25% of the eligible benefit compared to if you’d waited until reaching Full Retirement Age.²
Full Retirement Age² is the age at which you’re eligible to receive your full Social Security benefits. Waiting until this key age or even longer to start benefits can mean a larger benefit amount. It may also open up a variety of claiming strategies for married couples.
It can pay to delay. Delaying your Social Security claim can be a huge plus. Each year you wait between Full Retirement Age and age 70, your benefit amount will increase automatically. For example, if you were born between 1943 and 1954, your benefit amount would increase by 8% annually for each year you waited between ages 66 and 70.

Marriage has advantages

While anyone may be able to increase benefits by delaying their start, married couples have several additional advantages when it comes to Social Security:

Once a spouse starts receiving Social Security benefits (at Full Retirement Age), his or her partner can take spousal benefits, worth up to 50% of the benefit-receiving spouse’s total.
Former spouses and surviving spouses may also be eligible to receive benefits based upon the worker’s benefit amount.

Benefits while working

If you are Full Retirement Age or older, you can continue to work and keep all your benefits, no matter how much you earn. However, if you are younger than Full Retirement Age and have started receiving Social Security benefits, there’s a limit to how much you can earn without reducing your benefits. How much your benefits are reduced³ depends on when you reach Full Retirement Age and how much you earn.

Next steps

Social Security is incredibly complex. Choosing the best time to start benefits requires a thorough understanding of your individual situation and your options.

Although you may benefit from higher annual payments by delaying your start date, for some individuals, starting benefits earlier might be preferable. For example, if one spouse had significantly higher earnings during their working years, when they retire, they may need to start receiving payments sooner to offset any lost income.

An experienced financial professional can work with you to help determine the best time for you to file for Social Security, based upon your unique situation.

For additional information regarding Social Security, or to request an updated Social Security Statement, visit www.ssa.gov.

¹ Social Security Administration, 2023 (based on 2022 data)

² Full Retirement Age is the age at which you’re eligible to receive your full Social Security benefits. For people born between 1943 and 1954, Full Retirement Age is age 66. For individuals born between 1955 and 1959, Full Retirement Age increases by two months for each additional birth year (e.g. an individual born in 1955 would reach Full Retirement Age two months after their 66th birthday). For those born in 1960 or later, Full Retirement Age is 67.

³ If you are younger than Full Retirement Age for the entire year or reach retirement age during the year, your benefits will be reduced over a certain threshold amount. The thresholds change annually, so it’s worth visiting Social Security’s website (www.ssa.gov) or speaking to a representative to determine the exact reductions and thresholds each year.

The information above regarding Social Security was derived primarily from government sources and is believed to be accurate, but does not constitute legal or tax advice. Clients are encouraged to solicit advice from a qualified professional. The information presented does not constitute an advertisement or solicitation for the purchase or sale of any Social Security supplement policy. For more information, visit www.ssa.gov.

Life insurance can help with many needs and stages in your life

You have goals for your future, but sometimes you need a little help to reach them. Life insurance can be used in ways you might not expect when creating a smart financial plan.

Why life insurance?

Life insurance helps protect your family or business from the financial impact caused by your death with a death benefit that in most cases is paid tax-free.

Your beneficiaries can use the proceeds to help:

Cover living expenses
Pay off debts
Take care of final expenses
Provide for your children’s education
Make sure your business keeps operating

Protection and more

Life insurance can do more than protect your loved ones if you die, it can also be there for other needs in life. From supplementing your retirement income, starting a business, or paying for college, many permanent life insurance policies have the potential to build cash value that you can use during your lifetime.

Flexible protection

Meet the unknowns in your life head on by tailoring your policy with riders that can provide early access to your death benefit in the event of a terminal illness or chronic illness or help paying your premiums if you become disabled.

Protect what matters

Life insurance from AuguStar Life means you have our promise to help you protect what matters most while helping you pursue potential for tomorrow.

Successful business planning balances three needs

Every business owner faces the challenge of deciding how to best use available resources to grow their company. But positioning a business for growth takes more than just producing more of a good or service.

It’s also about finding the right balance when setting up plans to protect your business, to provide for your employees, and to take care of your own needs – because neglecting any one of those areas could jeopardize the ability of your business to succeed.

Protecting your business

Even thriving businesses may face adversity. Without the right safeguards in place, what should be temporary setbacks can quickly become serious threats to the health and sustainability of your business.

One of the most significant risks you can help protect your business against is the impact of losing a key employee due to death or disability. The impact on the business is heightened even more if the loss involves an owner. Many successful businesses put buy-sell policies in place to help ensure the business can continue operating when challenges come, helping protect the livelihood of the owners, employees, and their families.

Providing employee benefits and rewards

When structured properly, employee benefits become a powerful and cost-effective way to drive business results. Foundational benefits like a 401(k) plan are critical to attracting and retaining talent, while helping your employees prepare for the future. Targeted benefits for your top talent, like executive bonus plans and split-dollar life insurance, can improve retention and reward them for delivering exceptional business results.

Planning for your own needs

With so much time, energy and passion invested in your business, it can be easy to forget to take the time to plan for your own financial future. And while your business may be the best investment you ever make, it’s also true that not every business succeeds. An over-reliance on your business to provide for you and your family may be putting your future at too much risk. Other factors beyond your control, like a premature death, can also put your family and business at risk, even if your business is thriving.

Effective personal planning helps balance these risks so that you can focus on making your business successful, while knowing that the needs of you and your family will be taken care of. You can take important steps like having sufficient life insurance, helping protect your income with setting aside resources for your retirement, and planning ahead for the future sale or transfer of your business.

Balancing business and personal planning takes a bit of extra effort, but with a bit of guidance from a financial professional, it can help you maximize the value of your business for you, your family and your employees.