Getting a Degree of Financial Security

October 14, 2019

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Lindsay B. Waltower, MBA, CAP

Lindsay B. Waltower, MBA, CAP

Financial Professional



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August 21, 2019

Who Can Be My Life Insurance Beneficiary?

Who Can Be My Life Insurance Beneficiary?

Do you have a recipient in mind for the proceeds of your life insurance policy?

Many people have someone in mind before they purchase their policy. This person or entity can be named as your beneficiary. Naming your life insurance beneficiary helps to ensure that the party you choose gets the proceeds of your life insurance policy, even if your will leaves your estate to someone else. If you’ve decided that you want to provide for a special person or organization through your life insurance policy, it’s important that the beneficiary section will do what you expect.

Here are some simple tips that can help point you in the right direction:

Choosing Your Life Insurance Beneficiary
Who you name as your beneficiary is a deeply personal decision, and there’s no right or wrong answer. Here are some areas to consider:

  • Family: Spouses, children, siblings, and parents are all very common choices as life insurance beneficiaries. However, children under the age of 18 are a special case. Life insurance companies won’t pay a death benefit to a minor, so you may want to choose a responsible adult whom you trust with the welfare of your child.
  • Legal guardian: If your life insurance policy does name a minor as your beneficiary, your insurer may require that you designate a legal guardian.
  • Business / Key Person Life Insurance: In business partnerships, other partners can be a named beneficiary. Businesses also sometimes insure the life of a key employee with the business as the beneficiary.
  • Friends, etc: You can also name a friend as a beneficiary – assuming your friend isn’t a minor.

Note: Contrary to popular belief, you can’t name a pet as your beneficiary — but you can name someone you’d trust to care for your pet. (Sorry, Fluffy.)

Multiple Beneficiaries and Contingent Beneficiaries
You can name multiple beneficiaries for your life insurance policy, but when doing this, it’s better to use percentages rather than fixed dollar amounts. For permanent life insurance policies, like whole life insurance and universal life insurance, the death benefit payout amount can change over time, making percentages a better strategy for multiple beneficiaries.

You can also name contingent beneficiaries. Think of a contingent beneficiary as a back-up beneficiary. In the event that your primary beneficiary passes before you do (or at the same time), the proceeds of your policy would then go to the contingent beneficiary.

Final Thoughts
Avoid using general designations, such as “spouse” or “children” as your beneficiary. Spouses can change, as divorce statistics remind us, and you never know which long-lost “children” might appear if there’s a chance of a payday from your life insurance policy. In the very best case, general designations will cause delays in payment to your intended beneficiaries.

Choosing a life insurance beneficiary isn’t necessarily complicated, but there’s some room for error in certain situations. While the decision is always yours to make, it’s best to discuss your options with your financial professional to help make sure the settlement goes smoothly and your wishes are honored.

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June 3, 2019

Life Insurance: Before or After Baby?

Life Insurance: Before or After Baby?

Many people get life insurance after one of life’s big milestones:

  • Getting married
  • Buying a house
  • Loss of a loved one
  • The birth of a baby

And while you can get life insurance after your baby is born or even while the baby is in utero (depending on the provider), the best practice is to go ahead and get life insurance before you begin having children, before they’re even a twinkle in their mother’s eye.

A reason to go ahead and get life insurance before a new addition to the family?

Pregnancies can cause complications for the mother – for both her own health and the initial medical exam for a policy. Red flags for insurance providers include:

  • Preeclampsia (occurs in 5-10% of all pregnancies)
  • Gestational Diabetes Mellitus (affects 9.2% of women)
  • High cholesterol (rises during pregnancy and breastfeeding)
  • A C-section (accounts for 32% of all deliveries)

Also, the advantage of youth is a great reason to go ahead and get life insurance – for both the mother and father.

The younger and healthier you are, the easier it is for you to get life insurance with lower premiums. It’s a great way to prepare for a baby: establishing a policy that will keep them shielded from the financial burden of an unexpected and traumatic life event.

Whether you’re a new parent or beginning to consider an addition to your family, contact me today, and we can discuss your options for opening a policy with enough coverage for a soon-to-be-growing family or updating your current one to include your new family member as a beneficiary.

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May 29, 2019

3 More "I Dos" for Newlyweds

3 More "I Dos" for Newlyweds

Congratulations, newlyweds!

“To have and to hold, from this day forward…”   At a time like this, there are 3 more “I dos” for you to consider:

1. Do you have life insurance?
Any discussion about life insurance is going to start with this question, so let’s get it out of the way! As invigorated as people feel after finding the love of their life…let’s face it – they’re not invincible. The benefits of life insurance include protecting against loss of income, covering funeral expenses, gaining potential tax advantages, and having early access to money. Many of these benefits can depend on what kind of life insurance you have. Bottom line: having life insurance is a great way to show your love for years to come – for better OR worse.

2. Do you have the right type and amount of life insurance?
Life insurance policies are not “one size fits all.” There are different types of policies with different kinds of coverage, benefits, and uses. Having the right policy with adequate coverage is the key to protecting your new spouse in the event of a traumatic event – not just loss of life. Adequate life insurance coverage can help keep you and your spouse afloat in the case of an unexpected disabling injury, or if you’re in need of long term care. Your life with your spouse isn’t going to be one size fits all, and your life insurance policy won’t be either – for richer or poorer.

3. Do you have the right beneficiaries listed on your policy?
This question is particularly important if you had an existing policy before marriage. Most newlyweds opt for listing each other as their primary beneficiary, and with good reason: listing the correct beneficiary will help ensure that any insurance payout will get delivered to them– in sickness and in health.

If you couldn’t say “I do” to any or all of these questions, contact me. It would be my pleasure to assist you newlyweds – or not-so-newlyweds – with a whole NEW way to care for each other: tailored life insurance coverage – ’til death do you part!

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December 17, 2018

How much will this cost me?

How much will this cost me?

If you’re dipping your toe in the pool of life insurance for the first time, you’re bound to have a lot of questions.

At the top of your list is probably how much setting up a policy is going to cost you.

There are several things that can determine how much you’ll pay for life insurance, including the type of policy you select. But before we dive in and look at cost, let’s check out the types of life insurance available.

Major types of life insurance
Life insurance is customizable and can suit many different needs, but for the most part, life insurance comes in three main varieties.

Term life insurance: A term life policy is active for a preselected length of time. It could be 15, 20, or 30 years. If something happens to you during that term, your beneficiary will receive the death benefit of the policy.

Permanent life insurance: Permanent life insurance is a policy that stays active as long as you’re alive. When you pass away, the policy pays out to your named beneficiary. The value of the policy increases over time, and you can borrow against this “cash value” in some circumstances.

Universal life insurance: Universal life insurance works like a permanent life policy in that it pays out to your beneficiary, but it also accrues interest over the policy term (which may be affected by market performance).

How your cost is calculated
The insurance company estimates the cost of a life insurance policy based on your risk factors. Risk factor data is gathered and evaluated based on the information in your application. Then the insurance company uses historical data, trends, and actuarial processes to come up with a premium for you.

The cost of some life insurance policies can change over time, while others remain the same.

What risk factors does the company use?
When the insurance company is calculating your rate, they look at several factors, including:

Your demographics: Your demographics include your age, weight, gender, and health. The company will also want to know if you smoke, and other health-related issues you may have.

The amount of the death benefit: The death benefit is the amount the policy will pay to your beneficiaries when you pass away. The larger the death benefit you select, the more expensive the policy.

Your lifestyle: Lifestyle habits and hobbies can affect the cost of your policy. The insurance company will want to know if you ride a motorcycle regularly, or how often you drink alcohol, for example.

Your risk and life insurance cost
The risk of when your death will occur ultimately determines your life insurance costs. That’s why the younger you are the less the policy should cost. If you wait to purchase your life insurance policy when you’re older, the policy will most likely cost more.

But there are things you can do that may help lessen the cost of the policy. Anything that will increase your health status may help with your life insurance costs. Quitting smoking and starting a regular exercise program can promote your health and in turn this may also have a positive effect on your health insurance premium.

A life insurance agent can help
If you’re looking for a life insurance policy and wondering about the cost, a qualified life insurance agent can be a great help. A life insurance agent has access to many different insurance companies and can work to get you matched with the right policy at the right price for you.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing or enacting a savings or retirement strategy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options.

December 10, 2018

How young people can use life insurance

How young people can use life insurance

Sometimes life insurance doesn’t get the credit it deserves.

Most of us know it’s used to replace income if the worst were to happen, but that’s about it. If you’re in your twenties and just starting out on your own, especially if you’re single or don’t have kids yet, you might be thinking that getting a life insurance policy is something to put off until later in life.

On closer inspection however, life insurance can be a multi-faceted financial tool that has many interesting applications for your here-and-now. In fact, there’s probably a life insurance policy for most every person or situation.

Read on for some uses of life insurance you may be able to take advantage of when you’re young – you might find some interesting surprises!

Loan collateral: If you have your eye on entrepreneurship, life insurance can be of great service. Some types of business loans may require you to have a life insurance policy as collateral. If you have an eye on starting a business and think you may need a business loan, put a life insurance policy into place.

Pay off debt: A permanent life insurance policy has cash value. This is the amount the policy is worth should you choose to cash it in before the death benefit is needed. If you’re in a financial bind with debt – maybe from unexpected medical expenses or some other emergency you weren’t anticipating – using the cash value on the policy to pay off the debt may be an option. Some policies will even let you borrow against this cash value and repay it back with interest. (Note: If you’re thinking about utilizing the cash benefit of your life insurance policy, talk to a financial professional about the consequences.)

Charitable spending: If a certain cause or charity is near and dear to you, consider using the death benefit of a life insurance policy as a charitable gift. You can select your favorite charity or nonprofit organization and list them as a beneficiary on your life insurance policy. This will allow them to receive a tax-free gift when you pass away.

Leave a legacy of wealth: A life insurance policy can serve as a legacy to your beneficiaries. Consider purchasing a life insurance policy to serve as an inheritance. This is a good option if you are planning on using most or all of your savings during your non-working retirement years.

Mortgage down payment: The cash value of a whole life policy may be able to be used for large expenses, such as home buying. A whole life policy can serve as a down payment on a home – for you or for your children or grandchildren.

Key man insurance: Key man insurance is a useful tool for businesses. A key person is someone in your business with proprietary knowledge or some other business knowledge on which your business depends.

A business may purchase a life insurance policy on a key man (or woman) to help the business navigate the readjustment should that person die unexpectedly. A life insurance policy can help the business bridge that time and potential downturn in income, and help cover expenses to deal with the loss.

Financing college education: With the rising cost of college tuition, many families are looking for tools to finance their children’s college education. You may consider using the cash value of your life insurance policy to help with college tuition. Just remember to account for any possible tax implications you may incur.

Life insurance policies have many uses. There are great applications for young people, business owners, and just about anyone. Talk to a financial professional about your financial wishes to see how a life insurance policy can work for you.

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Read all of your policy documents carefully so that you understand what situations your policies cover or don’t cover. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Before purchasing an insurance policy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options and the consequences with use of the policy.

November 26, 2018

Travel Insurance: What to know before you go

Travel Insurance: What to know before you go

Postcard-worthy sunsets. Fascinating cultures and customs. Exotic people and maybe even a new language to learn – at least enough to order food, pay for souvenirs, and find the nearest bathroom.

Travel can leave us with some amazing memories and lead us to grow simply by being exposed to different ways of seeing the world. It’s also fraught with peril – much of which we don’t consider when daydreaming about our trip. Travel insurance has the potential to provide protection if the daydream turns into a nightmare in a number of ways.[i]

An auto or life insurance policy is designed to provide a limited set of coverages, making the policies fairly easy to understand. Travel insurance, by comparison, can cover a wide range of unrelated risks, making the coverage and its exclusions a bit more difficult to follow. Depending on your travel insurance provider, your travel insurance may cover just a few risks or a wide gamut of potential mishaps.

So how do you know what kind of travel insurance you should purchase? Read on…

Trip Cancellation Insurance
One of the most basic and most commonly available coverage options, trip cancellation insurance provides coverage to reimburse you if you are unable to take your trip due to a number of possible reasons, including sickness or a death in the family. Cancellations for reasons such as a cruise line going bust or your tour operator going out of business are also typically covered. Additionally, if you or a member of your party becomes ill during the trip, trip cancellation insurance may reimburse you for the unused portion of the trip. Some trips you book will allow cancellation with full reimbursement (within a certain timeframe) for any reason, whereas some trips only allow reimbursement for medical or other specific reasons – make sure you check the travel policy for any limitations before you purchase it.

Baggage Insurance
Your travel daydreams probably don’t include lost baggage or theft of personal items while abroad – but it happens to travelers every day. Baggage insurance is another common coverage found bundled with travel insurance that provides protection for your belongings while traveling. If you already have a homeowners insurance or renters insurance policy, it’s likely that you already have this coverage in place. As a caveat, homeowners insurance and renters insurance policies typically limit the coverage for certain types of items, like jewelry, and may only pay a reduced amount for other types of items. Home insurance policies also have a deductible – typically $1,000 or more – that should be considered when deciding if you should purchase baggage insurance with your travel insurance.

Emergency Medical Coverage
Most people don’t know if their health insurance will cover them internationally – it could be that your policy does not protect you outside of the country. Accidents, illness, and other conditions that require medical assistance are border-blind and can happen anywhere, leaving you wondering how to arrange and pay for the medical attention that could be needed by you or your family. Travel health insurance can cover you in these instances and is often available as a stand-alone policy or bundled as part of a travel insurance package.

Accidental Death Coverage
Often bundled as a tag-along coverage with travel health insurance, accidental death coverage provides a limited benefit for accidental death while traveling. If you already have a life insurance policy, accidental death coverage may not be needed – and chances are good that your life insurance policy has fewer limitations and provides a higher death benefit for your named beneficiaries or loved ones.

Other Travel Coverages
A number of other options are often offered as part of travel insurance packages, including missed connection coverage, travel delay coverage, and traveler assistance. Another coverage option to consider is collision and comprehensive coverage for rented cars. Car accidents are among the leading types of mishaps when traveling. Typically, a personal car insurance policy will not cover you for vehicle damage, liability, or medical expenses when traveling abroad.

When you’re ready to cross “See the Seven Wonders of the Modern World” off your bucket list, consider travel insurance. It may provide some relief so you can concentrate on the important things, like making sure you bring the right foreign plug adapter for your hair dryer.

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[i] “Should you buy travel insurance?” Insurance Information Institute, 2018, https://bit.ly/2Lv9BPc.

October 29, 2018

Understanding life insurance living benefits

Understanding life insurance living benefits

Most of us think of life insurance as something that only pays off once you die.

Once upon a time, that’s all life insurance did – the basics. However, today’s life insurance policies can be simple (if that’s what you’re looking for), or feature-packed and customized to your needs. Life insurance policies now can even pay living benefits. Yes, that means what you think it means: A policy can pay benefits even if you are still alive.

Term life insurance living benefits
Usually, a term life policy is among the most basic of policies, providing a fixed death benefit. It can provide coverage for a limited time at a guaranteed rate. But many companies are now offering a rider (that is, an add-on feature) that can provide living benefits with your term policy.

Living benefits can allow you to access the value of your policy under certain conditions:

  • Critical illness
  • Chronic illness
  • Terminal illness

Terminal illness is a commonly offered living benefit as an accelerated death benefit. Any amount withdrawn from the policy would be deducted from the policy’s face value. For example, if your term policy provides coverage for $250,000 but $100,000 is paid as an accelerated death benefit, your policy would still provide $150,000 as a death benefit to your beneficiaries.

Living benefits may also provide access to money from your policy in the case of chronic illness or critical illness.

Chronic illness can be a little confusing. Insurers usually look at the six activities of daily living (ADL): eating, bathing, transferring (walking), dressing, toileting, and continence. If your chronic illness prevents you from performing these activities, you may be eligible to receive a portion of your death benefit in advance.

Critical illness such as a heart attack, stroke, cancer, and some other illnesses may also make you eligible for an advance payment of your death benefit.

Not all term policies offer living benefits for chronic illness or critical illness, but an increasing number are offering this option as a rider, and a handful are offering this expanded coverage as a built-in benefit of the policy.

As always, speak with me or your financial professional about what living benefit policy options may be right for you and your family.

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June 4, 2018

She Got the House… AND the Life Insurance Policy?

She Got the House… AND the Life Insurance Policy?

Life insurance is great for protecting your spouse… as long as it’s for your current one.

This Forbes article tells the story of Warren Hillman, a man with a life insurance policy, a wife, and an ex-wife.

Now, I don’t know if the former Mrs. Hillman “got the house” in her divorce from Warren, but she definitely got the life insurance policy payout! When Warren died from a rare form of leukemia, the entire amount of $124,558.03 was given to Judy, the former Mrs. Hillman. Warren’s widow Maretta got nothing.

Why? When Warren remarried, he never changed the beneficiary designation on his life insurance policy.

Maretta and Judy fought over that money in court for years. The case went all the way to the Supreme Court. And the justices ruled in Judy’s favor. She, the ex-wife, was entitled to the entire payout.

All that time and money wasted on legal battles could have been avoided by changing a name on a form! Speaking of which… When’s the last time you reviewed your own life insurance policy? After reading this, you may already be scrambling through your files to find it!

Let’s check up on your policy together. Contact me today, and we can get the ball rolling on:

  • Reviewing (or revising!) your list of beneficiaries.
  • Making sure you have the coverage you want.
  • Discussing the life insurance features you might have that you can use now.
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Read More Over at Forbes

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