Ed Fojas | Life Insurance & Retirement Information

Leaving a job—whether because you are retiring, changing employers, or taking a different direction—does not mean your 401(k) disappears. The vested money in the account remains yours. What changes is that you generally stop making payroll contributions to that employer’s plan, and you may need to decide what to do with the account. In most situations, you will have four basic choices: Leave the money in your former employer’s 401(k) Move it to a new employer’s retirement plan, if permitted Complete a rollover to an Individual Retirement Account Withdraw some or all of the money Each choice has potential advantages, limitations, costs, and tax consequences. The right decision depends on your age, retirement timeline, need for income, investment options, plan fees, outstanding loans, and overall financial circumstances. Option 1: Leave the Money in Your Former Employer’s 401(k) Many employer plans allow former employees to leave their vested account balance in the plan, although the rul...

When most people think about life insurance, they think about money paid to their loved ones after they pass away. That remains its primary purpose—but certain policies may offer another important feature: access to part of the policy’s death benefit while the insured person is still living. These features are commonly called living benefits or accelerated death benefits . If the insured experiences a qualifying illness or medical condition defined in the policy, an accelerated death-benefit rider may allow access to a portion of the death benefit before death. The money may help the policyowner manage financial pressure during a difficult time. However, living benefits are not automatically included in every life insurance policy, and the conditions for receiving them can vary significantly. What Are Living Benefits? “Living benefits” is a general term often used to describe life insurance provisions or riders that allow an eligible policyowner to accelerate part of the policy’s...

  Reaching your 50s can change the way you think about financial protection. Your children may be older, your mortgage may be smaller, and retirement may be getting closer. At the same time, you may still have people who depend on you financially or expenses you would not want to leave behind. That raises an important question: Does life insurance still make sense after age 50? The answer depends on your individual circumstances. Instead of starting with a particular type of policy, it can be helpful to first understand what you want the insurance to accomplish. 1. Why Do You Want Life Insurance? People over 50 may consider life insurance for different reasons, including: Helping replace income for a spouse or family member Paying off a mortgage or other debts Providing funds for final expenses Leaving money for children or other beneficiaries Helping provide financial protection for a surviving spouse Addressing certain estate or legacy goals Your reason for co...