Knights of Columbus Insurance

Metro Omaha, Nebraska

Time...

by Tim Heller, FICF

After a Knight's funeral the other week, my thoughts were with the family of that Brother Knight…to his wife, his children, his beautiful grandchildren. Afterwards, I went inside and sat down at my computer and began typing…

Wheat, corn, oil, uranium, diamonds, gold, platinum…

What is the single most valuable commodity in the entire world?

What is so valuable that, throughout the course of history: kings and queens, emperors and politicians, even Popes and paupers have gone to the ends of the earth to covet?

What is so valuable that men have been willing to sell their souls to obtain?

What is the one thing that even Warren Buffet and Bill Gates combined can’t buy?

My friends, what is the one thing that even you will NEVER have enough of?

Four simple letters. TIME

Do we ever have enough time with the ones we love?

Do we ever have enough time in the day to accomplish the most important things?

Do we ever spend enough time in every day with our Lord and Savior?

Do we know the hour and day when we will have no more time?

Will someone ring a bell the day or week before we have no more time?

Will you wake up tomorrow morning?

Is there still enough time?

Have you spent enough time planning for this eventuality?

Do you know beyond a shadow of a doubt that your family will have the resources they need to fill the financial void you leave behind?

Will they know that you took the time to show them that you cared enough to meet their needs?

Put your watch to your ear and listen closely to the tick-tock of the second hand…Those seconds are gone. That time is gone, forever.

You are now seconds closer to the day you hear those words from your doctor…

You are now seconds closer to the moment you will hear these words from a priest "Through this holy anointing may the Lord in his love and mercy help you with the grace of the Holy Spirit. May the Lord who frees you from sin save you and raise you up." your last rites.

You are now seconds closer to the moment you can no longer make changes in how you will be remembered.

Some of you are like me, you’ve buried grandparents and maybe a couple of friends (albeit, too early.) Some of you have buried wives…some sadly children…some sadly grandchildren.

Will you be remembered as one who did the right things and made the right plan for that moment in time?

Take time for the ones you love. Take time to spend with your Lord and Savior in prayer and adoration.

Take the time to meet with your Field Agent. Take the time to put the right plans in place.

Take the time…for the ones you love. Brothers, take the time to do what is right.

If you would like a printable copy, please e-mail me at: tim.heller@kofc.org

4th Quarter 2006 www.kofcinsurance.com

Dear Brother Knight:

You’ve worked hard all your life to accumulate the assets you have. You’ve planned well and minimized the taxes you had to pay. Perhaps you even own rental properties. If so, your accountant has probably had you faithfully writing down all those expenses over the years to help reduce taxes.

So it’s a bit ironic to think that, whether the estate you’ll leave behind is large or small, Uncle Sam could get a significant chunk of your assets. Between estate taxes, probate fees, and capital gains taxes, your family may have to liquidate a substantial amount of your hard-earned estate just to pay the taxes.

That is, unless you have a plan in place—one where the taxes are paid for your estate rather than by it. One where the control of your estate stays in your family’s hands instead of the government’s. Or perhaps you’d like some of it to go to charity, and still leave a financial legacy for your children and grandchildren. This is entirely possible through sound estate planning, even if you have not accumulated great wealth during your working years.

We are charged to be good stewards of our money—and that means having a plan in place. There are many strategies to consider when building a solid plan. Life insurance is the cornerstone—and as a Knights of Columbus member you and your family have access to some of the highest rated products in the marketplace. Our Dual Life policies are a popular choice—they allow coverage even for someone with serious health challenges. What’s more, our tax-deferred annuities (and you’ll see inside that rates have recently risen nicely) can play a huge part by giving you a predictable income stream to live on, yet they are a probate-friendly source of funds to leave on.

Browse the inside pages and learn how the Knights of Columbus can help you build a secure future—from your children’s needs all the way through to your retirement. Then give me a call to help get some of these ideas started. That’s what we’re here for: the Knights of Columbus—protecting families for generations.

Fraternally yours—

Tim Heller

Fees that can deplete your estate*:

Federal estate taxes vary by state and are based on the value of your estate.
Inheritance taxes are state taxes your heirs may be required to pay on property they inherit from you.
Probate fees are based on the value of your estate and can be substantial.
Capital gains tax is due on any gain from the sale of properties—residential, commercial, or recreational.
Tax-sheltered funds you saved in 401(k)s and other investments are usually subject to estate tax.

* Not intended as legal or tax advice: for such matters please consult a qualified legal or tax professional.

A STEADY INCOME in retirement

It’ll be here before you know it: the first wave of baby boomers turns 60 this year and will be hitting retirement very soon. While it’s unclear exactly how the loss of such a large segment of workers will affect the economy, what is clear is that many boomers have misguided expectations of how their retirements will play out.

Consider these headlines from major newspapers and magazines within the past year:

“Workers’ views on retirement may be too rosy”
“Forget the rule of thumb: Saving 10% of your salary is no longer enough”
“Optimism about pension prospects may not be realistic”

Experts have been saying for years that as a whole, the baby boom generation is not saving enough for retirement. What’s less clear is what each of us should be doing about it. If you’re a bit stumped, read on. The Knights of Columbus offers three powerful planning tools that can put you right where you need to be.

And they are tools experts nationwide recommend, as borne out in more recent headlines:

“The secret to a happier retirement: Friends, neighbors and a fixed annuity”
“Almost seven million…now own LTC”
“Demand for life policies among older

These three tools—permanent life insurance, fixed annuities, and long-term care insurance (LTC)—can work together to provide a steady income stream in retirement. LTC insurance protects your assets and retirement monies, which would be quickly spent down if you needed care. Life insurance provides an income to the surviving spouse if one dies early, and protects him or her from having to deplete assets to pay probate fees and taxes. A fixed annuity buys you a steady income stream that never fluctuates and, depending on how you set it up, that you can’t outlive. And, interestingly, an annuity can offer a larger income stream than the same funding placed into investments, because with an annuity you receive part of the principal back in each monthly payout.

For more information, give me a call. Each of us is responsible for making our retirements work for us: don’t be caught in the shortfall many retirees will soon face. ✦

Extra-lifelong value for children

3 reasons why a Guaranteed Purchase Option (GPO) is a great buy

In generations past, people younger than 19 didn’t think much about protecting their future families against financial hardship or about saving money for retirement. Children today still don’t.

The difference is, children today can’t (and probably don’t want to!) count on working for decades for a big employer that provides life insurance and a pension plan. They probably won’t trust Social Security as a safety net, either. That’s why the gift of a life insurance policy for a young person may be more important today than ever.

Here are three great reasons to secure coverage for your children, supplemented with a GPO:

1. Give your child options

When you buy a Knights of Columbus life insurance policy for your dependent son or daughter, escalate the value of the gift with a Guaranteed Purchase Option (GPO) rider. As your child continues the coverage as an adult (as do 87% of those who have this option, according to the Life Insurance Market Research Association), he or she is guaranteed the right as an adult to buy up to six times the face value of the original policy, regardless of his occupation or health.

For example, say you buy your young son (or daughter, but we’ll use your son as an example) a $100,000 permanent life policy. That’s a great gift; $100,000 to his future loved ones, with very affordable premiums his whole life. But add a GPO to your purchase, and you’ve just exponentially increased your gift. Now he’ll have the option to buy up to an additional $100,000 of coverage after he turns 25, and again every three years after that: at age 28, 31, 34, 37, and 40.

Now your boy’s got an affordable option to secure more than half a million dollars of life insurance by the time his own kids are looking at him the way he’s looking at you today.

2. Remove the family health history factor

With a GPO, he can buy additional insurance when he decides to use the options, regardless of his health! That could make all the difference in the world for his own family’s financial well-being some day. Most of us have concerns about family health history that we or our children may inherit. Could your son be looking at diabetes, heart disease, even high blood pressure someday? Many common diseases can mean denial of life insurance, or very expensive premiums. Not for yours on; not if you’ve purchased a permanent life policy for him. With the additional protection of the GPO, you have guaranteed his future insurability.

3. Provide a quick source of cash

A great bonus of permanent life insurance is that the accumulated cash value of the policy will grow and could become significant—providing a financial safety net, a springboard for your grandchildren’s education, or anything your son encounters that requires an additional source of cash*. What a great financial foundation for him his whole life!

Would you like to consider a permanent life policy and the accompanying GPO for each of your children? Just give me a quick call to learn how affordable it is to give your kids this wonderful gift. ✦

*Your child may choose to pay back a loan against his or her permanent life policy at a low interest rate, or may simply deduct the value of the loan from the eventual proceeds of the policy.

Pink slips happen

all it whatever you want: downsized, right-sized, laid-off, or fired—the truth is, it means you're out of a job. While being “let go” can be a traumatic experience, there are ways to successfully prepare for surviving a pink slip.

Save! Save! Save! Start saving for that rainy day now. According to the Bureau of Labor Statistics, those who lose their jobs remain unemployed an average of four months. You'll need an emergency fund to carry you through.
Secure your own life insurance now. Employer sponsored plans usually stay with the job. The Knights of Columbus can provide you with an individual plan that will provide financial protection your whole life - no matter how many times you change jobs. And whole life plans build cash value you can use to get by on, too.
Avoid dipping into the retirement plan. It may seem like a good source for quick cash while you’re job-hunting, but remember, that money was ear-marked for the long-term, and your job loss is only short-term.
Call your creditors. Inform them of your job status and see if you can arrange for an alternate timeline to pay those bills.
Update your skills. Improve your job skills - and your value to the marketplace - by taking classes or attending industry seminars as you search for new work.

Losing your job can be one of the more challenging situations in life. But by being prepared, you can survive unemployment - and have the focus you need to move successfully on to a new career.

This publication is written to provide accurate and authoritative information with respect to the subjects covered. However, the information contained in this publication is not intended as a substitute for direct financial and legal advice. For such assistance, please contact a qualified professional. Reproduction of any part without written permission is strictly prohibited. Published in conjunction with the Knights of Columbus by Planet Newsletter, LLC; distributed in the United States and Canada.

Buying for kids means

LOW PREMIUMS FOR LIFE.

Childhood is a great time to begin a permanent life insurance policy, that is, a policy that accumulates cash value as long as premiums are paid. Here's why:

The longer in late we wait to purchase this type of insurance, the higher the premiums will be. On the other hand, the younger, the lower.
If you buy a K of C permanent policy for your child at current rates, premiums can't increase*, even if you child later develops health problems.

*As long as premiums continue to be paid so the policy stays in force.

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