After completing the Series 65 exam, Darcy Bergen started providing financial consultation as president of Bergen Financial Group. A financial advisor, Darcy Bergen provides clients with advice on risk management, income planning, and life insurance.
According to a study by the Life Insurance Marketing Research Association, less than half of Americans have individual life insurance coverage, the lowest level in half a century. One of the main reasons for this is that most workers opt for employer-provided group policies rather than individual coverage. Even though the employer benefit can be convenient, it is far better to maintain an individual life insurance coverage. The more obvious reason is to safeguard from employment uncertainties. Considering the employment market has its ups and downs, it is better to have an individual cover that remains active in the case of employment termination. The other less obvious reasons are the flexibility and benefits of an individual coverage.
Individual life insurance policies can either be term or permanent. Term life insurance provides cover over a specified time period. The terms can go as long as 30 years. This policy gives policyholders several options. The payment schedules can be fixed or annually adjusted. Some plans have an option to extend the term or convert the coverage to permanent life insurance which provides a death benefit upon the death of the policyholder.
With the permanent cover, payments are typically higher but the premiums remain the same. Insurers set aside a portion of these payments in tax-deferred, cash value accounts which grow at guaranteed rates. Policyholders can make withdrawals or take loans from these accounts, tax-free.
Financial advisor Darcy Bergen is the president of Bergen Financial Group. Committed to helping people have financial freedom in retirement, Darcy Bergen encourages people in employment with 401(k) plans to take advantage of employer matching accounts.
Saving retirement money in a 401(k) alone will not lead to a comfortable retirement for many Americans. A study by Boston College’s Center for Retirement Research reveals that most Americans’ balances are not enough to guarantee a financially secure retirement. So how can workers maximize their 401(k) contributions? By taking advantage of employer matches.
Workers who fail to get their full employers match are leaving huge sums of money on the table. On average, workers leave retirement incomes worth $1,336 every year by failing to maximize employer matches. Taken over the course of a person’s employment, this amount really adds up. Paying $1,336 into a 401(k) earning a 10 percent return every year for 45 years will grow to a $960,000 retirement fortune. That’s enough to give you a comfortable retirement. Workers should take advantage of employer matches on 401(k) plans and invest the proceeds wisely to help grow their nest eggs exponentially over time.