September 14, 2016

If you read the contract for your annuity or permanent life insurance policy, you will encounter insurance industry terms that sound similar but mean very different things. This is the case with terms such as face value, cash value, cash surrender value, surrender cost and account value. The differences between these concepts are sometimes small, but they can make a large difference if you need to pull money from your policy. The cash value or surrender value is equal to the sum of money built up within a cash value-generating annuity or permanent life insurance policy. Your insurance or annuity provider allocates some of the money you pay through premiums toward investments — such as a bond portfolio — and then credits your policy based on the performance of those investments. It should be noted that it is technically illegal for a life insurance policy to be promoted as an investment vehicle, however policyholders will use their whole, universal, or variable universal life insurance policies to grow their tax-advantaged retirement assets. As a reminder, term life policies do not build cash value. The surrender value is the actual sum of money a policyholder will receive if he tries to access the cash value. This is also referred to as the surrender cash value or, in the case of annuities, annuity surrender value. The cash value and surrender value are not the same as the policy’s face value, which is the death benefit. However, outstanding loans against the policy’s cash value can reduce the total death benefit. I’ve included an example of cash vs surrender value from the article:

Suppose you purchase a whole life insurance policy with a death benefit of $200,000. After 10 years of making consistent, on-time payments, there is $10,000 of cash value in the policy. You consult your insurance contract and see that the surrender charge after 10 years is equal to 35%. This means if you tried to cancel your policy after 10 years and withdraw your cash value, the insurance provider will assess a $3,500 charge to your cash value, leaving you with a surrender value of $6,500

It’s important to consult with a life insurance agent, and discuss what type of policy would work best for you. Ultimately you want to have a vehicle in place to provide for your family in case anything happens to you, and you have a large number of liabilities and no true assets that will provide income. Also it’s important to have a last will and testament and if necessary a trust to make sure your assets will be protected. If you want more information, you can reach me in the contact me section

Last Wednesday marked the first day of “Hida Beef Week” in New York City­­­­—a festival and publicity tour for ultra-premium Hidagyu—presented by Gifu Prefectural Government, Japan. For the next week and a half, “or while supplies last,” a selection of renowned Japanese restaurants in New York will feature Hidagyu in dishes and tastings. It was just last October that the meat provided by JA Hida Meat (Hida Meat Agricultural Association) was approved for American markets, thus making Hidagyu now regularly available. This Hida beef is on par if not better than the well-known Wagyu (Kobe) beef. This beef is a black-haired cattle breed from Gifu Prefecture, Japan. These particular cows drink from fresh springs against a mountain backdrop. Hidyagu is raised for at least 14 months or more. This promotes soft texture, delicate flavor and a unique marbling pattern that extends across the steaks, flank, shoulder and round. It’s this thin and thorough marbling that gives the beef a distinctly tender texture, and the fine webbing of fat that seals the meat’s juices like a spider’s nest. At the time of this article, there are multiple restaurants that are offering this type of beef in New York. The traditional way to eat this type of beef is as a steak or filet, but it can also be used in Japanese barbeque. In closing, Durvett seemed enthusiastic about the arrival of Hidagyu. “It just melts in your mouth like butter,” she remarked, “I want to eat some just thinking about it.” This particular article shows the benefits of having a higher quality of life. Is this possible for you? I believe so. It begins with knowing your numbers, controlling your numbers and making your money work hard for you. I suggest a financial checkup to properly assess your financial health.

If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.

For this week, I’ve included an animated book review of the Richest Man in Babylon by George Clason from the TheJourney Youtube channel.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG


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