Viking Magazine - May 2015 - 13

minimize the tax effect. Also, generally
the proceeds from a life insurance policy
are estate tax-free to the beneficiary.
How do I make sure my money
is safe?
" With the volatility of the stock market,
people are nervous, " Krause says.
" People have worked hard for their
money and they don't want to see their
savings vanish. As you get closer to
retirement, consider a more conservative
approach with your investments.
You do not have the luxury of time to
make up for market corrections. " If
you are looking for a safe vehicle, Sons
of Norway offers guaranteed safe life
insurance and fixed annuities. They have
minimum interest-rate guarantees and
safety features.
Is my money liquid if I
purchase an annuity?
Sons of Norway flexible premium
deferred annuities have a " penalty-free
withdrawal feature, " which allows you
to withdraw up to 10 percent of the
accumulated value per year penaltyfree
after the first year, Carlson says.
Annuities are medium- to long-term
conservative investments and your
money grows tax-deferred. If you need
more short-term liquidity, holding
cash in liquid bank checking accounts,
savings accounts or short-term CDs will
provide that liquidity.
Should I buy
Permanent
or Term Life
Insurance?
Permanent life
insurance as its name
suggests can provide
protection throughout
your life. Generally premiums are level
and build a cash value. It is ideal for
estate planning, providing income in
old age or for legacy giving. Term life
insurance provides coverage for a fixed
period of time. Premiums are lower than
permanent insurance. However, at the
end of the period, either the contract
ends without value or there will be a
substantial premium increase. It is ideal
for shorter-term needs like covering
the cost of a mortgage or providing
replacement income to cover costs
during the time your children are still
dependent on you.
Why should I buy life
insurance for a child or
grandchild?
First, in the event of a premature
death, the policy can help cover final
expenses, as well as lost income for
the parents. With a prolonged illness,
parents may need to take time off work
or need counseling to cope with the
loss. Second, getting coverage early on
for a healthy child can guarantee future
insurability. Should a medical condition
or bad habits develop later, the child
has already qualified for life insurance
protection because a policy is already
in place.
When I buy a life insurance
policy, who should I name as
beneficiary?
Generally the beneficiary is your spouse,
older children or grandchildren. You
should be specific and list the names
of the individuals you choose. Do not
use " estate of the insured " or " wife. "
You may also want to use the policy to
leave a legacy to the Sons of Norway
Foundation, your church, alma mater or
other charity you are involved with.
« Whether you are just starting to
determine your financial goals or just
need a review, your Sons of Norway
Financial Benefits Counselor is ready to
discuss with you the above questions
and more to help you with your lifelong
financial goals.
Sons of Norway Financial Benefits
Counselor Ann Krause serves
members in both North Dakota
and Florida.
FINANCIAL TERMS
For a list of life insurance products
and a glossary of terms, check out
Sons of Norway's Learning Center
at sonsofnorway.com/financial_
products/insurance_products.
« Term Life Insurance: Provides
insurance for a specified period of
time, for example 20 years. While
premiums for term insurance are
initially lower than permanent
insurance, they can increase
substantially over time.
« Permanent Life Insurance:
Provides insurance coverage for
the life of the insured individual as
long as the required premiums are
paid. Generally the premium will
remain level during the length of
the contract and will build a cash
surrender value.
« Cash Value: An amount available
if the policy is canceled or taken as a
loan against the policy. Depending
on the premiums paid, there may be
an income tax consequence upon
taking the cash value of certificate.
« Estate Planning: Preparing for
the orderly and efficient transfer
of assets at death. It also involves
planning for retirement and other
life-changing events.
For a complimentary consultation
with your Sons of Norway Financial
Benefits Counselor, visit
sonsofnorway.com.
sonsofnorway.com VIKING MAY 2015 13
http://www.sonsofnorway.com/financial_ http://www.sonsofnorway.com http://www.sonsofnorway.com
Viking Magazine - May 2015

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