Tri-Tex Insurance Agency, LLC

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Address:




Tri-Tex Insurance Agency, LLC
Affordable Health Insurance Agency


AHIA


7330 San Pedro Ave., Suite 150

San Antonio, TX 78216

Phone:

(210) 404-0010

Fax/Other:

(210) 403-3299

Retirement Planning Definitions

Estate Planning

Estate Planning involves the orderly arrangement of one's financial affairs so as to maximize the value of the estate when transferred at death, to the people and institutions favored by the deceased, with minimum loss of value because of taxes and forced liquidation of assets. A well-structured estate plan is invaluable. Through it you can control the distribution of your assets and possessions, as well as name guardians for your children or plan care for other dependents. While the process of planning your estate can raise some difficult emotional and personal issues, your heirs will be glad that you did so, and you will be comfortable knowing that your wishes are assured.

Trust Planning

Setting up trusts can help you avoid probate, reduce estate taxes, and may also help you set up long-term property management. Probate can take months and can erode the value of the estate by 5% (Or more) through lawyer and court fees. If you set up a trust before your death, after your death property can be quickly and quietly distributed to the beneficiaries, and there are no lawyer or court fees to pay. There are several kinds of living trusts. With the assistance of an attorney, we can help you decide whether you need a living trust and what type would be best for you and your heirs.

Charitable Remainder Trusts

The Charitable Remainder Trust is an irrevocable trust with both charitable and non-charitable beneficiaries. The donor transfers highly appreciated assets into the trust and retains an income interest. Upon expiration of the income interest, the remainder in the trust passes to a qualified charity of the donor's choice. If properly structured, the CRT permits the donor to receive income, estate, and/or gift tax advantages. These advantages often provide for a much greater income stream to the income beneficiary than would be available outside the trust.

Irrevocable Life Insurance Trusts

An Irrevocable Life Insurance Trust helps you reduce the number of assets that will be subject to taxation after your death, by gifting life insurance premiums to the ultimate beneficiaries through a lifetime gifting program. You can avoid transfer tax on any appreciation in the value of the gift between the time of the gift and the grantor's death. Life Insurance is a particularly attractive vehicle for this situation because of the great difference in values before and after the insureds (grantor's) death. Gifts to an Irrevocable Life Insurance Trust are often eligible for the $12,000 annual gift tax exclusion, meaning that no one pays any taxes on the gift, neither the grantor nor the heir.

Revocable Living Trusts

A Revocable Living Trust is "Revocable" because you can change the terms or cancel it at any time. It is "Living" because the trust takes effect while you are still alive. It is a "Trust" because it creates a place where assets are available for your normal use now as well as after your death. It can be used for other reasons in addition to avoiding probate: if you own property in more than one state your heirs can avoid multiple probate proceedings; if you are incapacitated, your successor trustee can manage your affairs; and you can specify the maturity age of your heirs.

Life Insurance

Life insurance provides either a stated sum or a periodic income to your designated beneficiaries upon your death. Certain "life events" such as marriage, the birth of a child, or a change of jobs trigger the need to buy or add life insurance. Deciding that you need life insurance is the first step. The next step, deciding what kind of life insurance, is where we can help. We offer a variety of policies to fit a variety of needs.

Universal Life

Universal Life insurance is similar in design to Term Life insurance but has an additional feature that allows you to put extra funds into the policy over and above the life insurance cost. These excess funds are entered into an interest bearing account where they grow on a tax-advantaged basis. You may accumulate significant cash value over the years and, in some circumstances, "borrow" the appreciated funds without paying taxes on the borrowed gains. As long as the policy stays in force the borrowed funds do not need to be repaid, but interest may be charged to your cash value account.

Whole Life

A traditional Whole Life insurance policy provides both a death benefit and a cash value component. You can borrow this cash value to pay for unforeseen expenses, education or even to supplement retirement income. Many Whole Life insurance policies let you participate in the profits of the insurance company by receiving "dividends" and let you choose what you want done with your dividends, from building cash value, to buying additional "paid up" amounts of Whole Life insurance coverage, to even helping pay your policy's premiums.

Variable Life

A traditional Variable Life policy provides both a death benefit and cash value component, but differs from a Whole Life insurance policy because it allows you to invest the cash value in investment portfolios selected by the insurer. Your invested portfolio may fluctuate and may worth more or less then your investment. If you accumulate significant cash value over the years, you may “borrow” the appreciated funds without paying taxes on the borrowed gains. As long as the policy stays in force, the borrowed funds do not need to be repaid, however, interest may be charged to your cash value account. However, “borrowed” funds may reduce the death benefit of the policy and may require additional premiums invested to prevent policy lapse.

Term Life

Term Life insurance provides protection for a specific period of time, usually 5, 10, 15 or 20 years, and pays the benefit only if the loved one passes away during the term. If you are interested in short term coverage or coverage for a specific need such as college tuition or the purchase of a home, Term Life insurance would suit you. It is also an affordable option for young people buying insurance for the first time. Term Life insurance does not build any cash values and can get more expensive as you get older.

Mortgage Term Life

Mortgage Term Life insurance is a life insurance policy covering a mortgagor. The benefits from this policy are intended to pay off the balance due on a mortgage upon the death of the insured. It provides level premiums with a decreasing death benefit.

Guaranteed (Fixed) Annuities

Guaranteed Annuities offer two important features of a sound retirement savings plan-relative security and predictability-with the ability of tax deferral. Your investment earns competitive tax-deferred interest guaranteed by the issuing insurance company. By annuitizing, you may enjoy a lifetime income. There may be a 10% tax penalty for withdrawals before age 59 ½. Penalties may apply for withdrawals during the surrender period. The risk associated with a guaranteed annuity is that you will earn no more than the minimum guaranteed interest. Guarantees are based on the claims paying ability of the insurance company.

Traditional

Conservative investors who are more interested in protecting the principal of their investment and receiving a competitive fixed rate of return may be more comfortable with the safety offered by a traditional fixed-dollar annuity. With a deferred fixed annuity, you lock in an interest rate for an initial period, normally one to three years. When the period ends, the insurance company designates a new rate of return for the succeeding period. Most deferred fixed annuities have a minimum guaranteed rate that will be paid regardless of economic conditions.

Total Return

If you are seeking reduced risk but still want the potential for high total return on your investment, you may want to consider a Total Return fixed annuity. These types of annuity products obtain a total return from a flexible combination of current income and capital appreciation, along with the preservation of capital over the long-term using a multi-asset approach. Total Return Annuities maintain a diversified portfolio that includes stocks, bonds and money market instruments. This approach can reduce the risk of loss due to the decline of one portion of the portfolio. There may be a 10% tax penalty for withdrawals before age 59 ½. Penalties may apply for withdrawals during the surrender period. The risk associated with a guaranteed annuity is that you will earn no more than the minimum guaranteed interest. Guarantees are based on the claims paying ability of the insurance company.

Indexed

Indexed Annuities (IA's) offer a minimum guaranteed interest rate combined with a rate linked to a stock market index. IA's also have the potential to earn returns better than traditional fixed annuities when the stock market is rising, however IA's are not stock market investments.

The index-linked gain depends on the particular combination of indexing features that an IA uses. Participation rates are set and limited by the insurance company. So, for example, an 80% participation rate limit means that only 80% of the gain experienced by the index for that year would be credited to the contract holder. If there is no indexed-link interest for a year or a period of years, IA's offer a minimum guaranteed interest rate. More importantly, IA's are guaranteed never to lose value regardless of market conditions.  Like most annuity contracts, IA's have certain rules, restrictions and expenses, and some insurance companies may change rates and fees annually. To fully understand an IA, make sure you not only understand each feature, but also how the features work together, since these features can dramatically impact the return on your investment.

IAs are long-term investments. IAs are not stock market investments. If you surrender your IA early, you may have to pay a significant surrender charge. As with any withdrawals from tax-deferred annuities before 591/2, a 10% tax penalty will reduce or eliminate any return.

All guarantees are based upon the claims paying ability of the sponsoring insurance companies.

 

Please click here for more information and video on Indexed Annuities.


 

 

 

Multi-Year Guaranteed

A Multi-Year Guaranteed Annuity allows you to select from various guarantee periods. Each guarantee period carries a declared rate that is locked in throughout the selected period. The rate your premium will receive depends upon which guarantee period you choose. There may be a 10% tax penalty for withdrawals before age 59 ½. Penalties may apply for withdrawals during the surrender period. The risk associated with a guaranteed annuity is that you will earn no more than the minimum guaranteed interest. Guarantees are based on the claims paying ability of the insurance company.

Combined

If you are looking for the safety and security of a fixed annuity with the upside potential of a Total Return Strategy, then combining a Multi-Year Rate Guarantee Strategy and a Total Return Strategy may be the solution for you. There may be a 10% tax penalty for withdrawals before age 59 ½. Penalties may apply for withdrawals during the surrender period. The risk associated with a guaranteed annuity is that you will earn no more than the minimum guaranteed interest. Guarantees are based on the claims paying ability of the insurance company.

Immediate

If your desire is to have an income you cannot outlive, or you just want to "Spend your last dime on your last day", then an immediate annuity might be for you. Many people already have an immediate annuity and do not even realize it.....it is their pension. Immediate annuities can be structured to simply payout an income for only a specific number of years, or for lifetime with (Or without) a specific number of years. The risk associated with an immediate annuity is in choosing a lifetime only payout, then not living long enough to recoup the investment. This is easily avoided by choosing a lifetime payout with a period certain. In this case if the annuitant dies early, the beneficiary receives the proceeds of the annuity. Immediate annuities are commonly used to minimize taxation when estate planning, interest income and taxation are an issue. Guarantees are based on the claims paying ability of the insurance company. For more information about immediate annuities, or for an immediate quote, click on the link below.

www.immediateannuity.com

Disability Insurance

If you were disabled and unable to work as a result of an accident or illness, what would you and your family do for income?  Disability income insurance (Which complements health insurance) can replace lost income. Forty-three percent of all people age 40 will have a long-term disability event by age 65 (lasting 90 days or more).
 
Disability insurance pays an insured person an income when that person is unable to work because of an accident or illness.
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):
Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
 
 
Critical Illness Insurance
 
In comparison to disability income payments, Critical Illness insurance pays an insured person a lump sum (Tax-free) if that person is unable to work because of an accident or illness.
Doctor Marius Barnard said, “There have been more advances in medical science and technology in the last 20 years than the prior 2000 years.” This medical phenomenon has completely changed the rules of the game, and must be addressed in any responsible financial plan. 

What is your greatest asset?  We believe your greatest asset is your health and your ability to earn income. Is it possible in the next 90 days that you could suffer a heart attack, stroke or cancer?  If you do, having a lump sum tax-free check would allow you to focus on recovery rather than stress over lack of income. 
 
 
 


 
 
 
Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck