At what age should I buy permanent life insurance?

Like most things in life, there is always more to the story (not less) and permanent life insurance is a valuable tool when used in certain situations to achieve specific objectives. Recently, clients are asking the following question and it is deserving of a thoughtful answer: If I am someone considering buying permanent life insurance, at what age should I do that? Brief sidebar: permanent life insurance refers to both whole and universal life insurance products where the coverage is intended to pay the life insurance proceeds to the policy beneficiary when the insured passes at some unknown time in the future. Most, but not all, build cash-values and offer policy owners various choices on how the premium dollars are invested inside the policy. Factors to consider when discussing if permanent life insurance if right for you: • You bought term life insurance, it’s expiring and you still need the coverage. What if your current health or avocation status precludes you from buying new term insurance? In this situation, you may have the opportunity to exercise a term policy’s “conversion rights” and “convert” to a permanent life insurance policy without the need to provide any new medical evidence of insurability. • You want flexibility or need to control how long the insurance coverage lasts. • You need long-term liquidity due to the nature of your illiquid assets (i.e. the family cottage, farmland, commercial real estate, business interests and partnerships, etc.) Dividing hard assets fairly among children without offsetting cash is nearly impossible. Also, selling an asset under duress (a.k.a. “fire sale”) to create that cash prevents your heirs from receiving full value for your hard-earned assets. • You have a desire to pass wealth to the next generation; could health (long term care costs) and/or taxation (income taxation on the passing of qualified money, federal estate tax liability, etc.) severely deplete or degrade the value of your estate? As for age, in a general sense, these are characteristics of a permanent life insurance buyer:

At Rose Street Advisors, our focus is to help clients understand what options best help them achieve their specific financial, business and estate planning objectives. Our team is ready, willing and honored to help. Please Contact Us by web or call 269.552.3200.

Rob Hunt II

Principal & CEO

As Principal and CEO, Rob spearheads the vision, drive for growth, and pursuit of excellence at Rose Street Advisors. Rob loves being outdoors with his wife Erin and kids. He has slalom skied for the past 35 years, never missing a season. He also enjoys spending time at the lake and on the golf course. This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual or entity. To determine what is appropriate for you, please contact your Rose Street Financial Professional. Information obtained from third-party sources are believed to be reliable but not guaranteed. Securities and Investment Advisory: Services offered through M Holdings Securities, Inc., A Registered Broker/Dealer and Investment Advisor, member FINRA/SIPC. Rose Street Advisors is independently owned and operated. Rose Street Advisors is a member firm of M Financial Group. #5441330.1

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A Common Thread: Being thankful for clients who care

When I joined Rose Advisors 12+ years ago, I asked my mentor and insurance industry pioneer, Butch Doerschler -- who is the perfect client? His answer was so simple and clear that it still resonates with me today. Who was Butch’s best client? It was someone who cared about someone or something other than him/herself.

Over the years, I have quickly come to appreciate a client’s different perspective on all facets of life; from family and business to finances and community. While clients are unique, one common thread does bind them together: Buying life insurance is a selfless action where someone or something else benefits from your decision to act. As an advisor who wants to make a difference, I am fortunate to have this foundational understanding of my clients - they care about someone or something other than themselves. What a privilege it is to do this kind of work with this type of person!

Our clients care deeply about the following:

• Their Family: A commitment to, and a love of family compel many to buy life insurance to replace income, fund a spouse’s retirement and to pay off debt obligations.

• Their Business: Underneath it all, business owners care about their partners, their employees, their customers and their community. When a business owner or partner buys a life insurance policy, what they are ultimately buying is peace of mind.

• A Charity or a Cause: Whether it’s a community organization, a religious or educational institution or a worthy cause, life insurance can be used to support meaningful work in our communities for years to come

• A Generational Legacy: Sometimes it’s grandparents wanting to fund a grandchild’s educational pursuit or a desire to divide an undividable asset among multiple siblings so that it can stay in the family (think lake cottage or acres of farmland). Other times it’s to better prepare for a federal estate tax liability looming on the horizon where Uncle Sam could become a majority beneficiary of family-wealth without proper planning. It’s important to note that funds from a properly structured life insurance policy are received by beneficiaries free from taxation (income, capital gains and, possibly, federal estate tax).

At Rose Street Advisors, along with the power of M Financial, we would be honored to help you protect and provide for those people and things you care most about.

Happy Thanksgiving from our family to yours!

Rob Hunt II

Principal & CEO

Securities and Investment Advisory: Services offered through M Holdings Securities, Inc., A Registered Broker/Dealer and Investment Advisor, member FINRA/SIPC. Rose Street Advisors is independently owned and operated. Rose Street Advisors is a member firm of M Financial Group. #5242974.1

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Rose Street Advisors Community | Life Happens

Name: Rose Street Advisors — Grand Rapids Office
Address: 5181 Plainfield Ave NE, Grand Rapids, MI, 49525, US
Telephone: 269.552.3200

Top 5 Reasons to Convert Your Term Insurance:

1. Timing: The level premium paying term is running out…and you still need coverage. Life insurance premiums increase exponentially once the original level term time period expires. For example, year 21 of a 20-year level term policy can see the annual premiums rise 30X over the previous annual premium (in one case, the premium jumped from $1,420 to $45,510 in year 21). 2. Cost: Life insurance costs are largely based off the age and underwriting class of the insured. As we age, most of us don’t get healthier. In addition to being older, qualifying through medical underwriting for new coverage could be challenging. Term conversions are based on the underwriting rate class you earned when the term policy was originally purchased, which could be a significant cost-savings benefit. 3. Convenience: The underwriting process, which includes medical and personal history assessments, can be invasive and time-consuming. Conversions avoid the underwriting process and can be completed quickly. 4. Flexibility: You're tired of renting your life insurance and want to control how long the coverage lasts and how you pay premiums. Permanent insurance allows you, not the insurance carrier, to determine how long the coverage lasts and how you pay premiums. 5. Change in Circumstance: Your situation has changed and access to tax-deferred cash values for future retirement income and/or tax-free (income, capital gains and federal estate) liquidity at your passing helps accomplish your estate planning objectives. If you have term insurance and would like to understand your options, an advisor at Rose Street Advisors would be pleased to help.

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #4332774.3

Rob Hunt II LIC, CLU

Principal & Chief Executive Officer

As Principal and CEO, Rob spearheads the vision, drive for growth, and pursuit of excellence at Rose Street Advisors. Rob loves being outdoors with his wife Erin and kids. Fun Fact: He has slalom skied for the past 35 years, never missing a season. He also enjoys spending time at the lake and on the golf course.

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Life happens...have you updated your life insurance coverage?

Key events in life prompt a call or email to a life insurance advisor. In our experience, marriage, the birth of a child, a job change, or the death of a friend or relative should (and many times do) cue a reassessment of one’s life insurance coverage.

Marriage - For many, this is the first time someone else relies on your income and/or benefits. What would happen to your spouse if you were to die unexpectedly?

Birth of a Child - With a child as a dependent, the proper life insurance coverage is even more important. Do you want to make sure that your child(ren) will be taken care of if you or your spouse pass away? Childcare costs, education expenses coupled with the basic costs of raising children also need to be considered?

Job Change – During initial client conversations, we often hear that “they are set” with life insurance coverage because “my employer offers life insurance.” While a great benefit, it’s often not nearly enough coverage and isn’t portable if the insured leaves for a new job. Group life insurance should never be a reason to hesitate to take that new job. When a new position comes with an increase in compensation, discussions center around appropriate amount and type of coverage that best meets their needs.

Death of a Friend or Relative - Unfortunately, tragedy hitting close to home prompts clients to start the conversation about updating their life insurance coverage. We all think “that won’t happen to me,” until it does.

Life happens, and chances are, one or more of these life events have happened to you. Is it time to reassess your life insurance coverage?

Mark Denenfeld

LIFE INSURANCE ADVISOR

Mark joined Rose Street in 2017 and helps clients with their estate, business succession, and family/business planning through the use of life insurance products.

He loves golf, skiing, hiking, and reading. Fun fact: Mark has both played and coached tennis at the collegiate level.

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Let Us (Re)Introduce Ourselves

To the many friends of Rose Street Advisors, As we embrace this new year, we are more committed than ever to living out our core values and our mantra "What We Do and How We Do It Matters". Enjoy this glimpse into the people and the heart of Rose Street Advisors from the team themselves. With humble appreciation for our clients and our people,

Rob Hunt

LIC, CLU | PRINCIPAL & CHIEF EXECUTIVE OFFICER

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Honoring the Past and Embracing the Future

As we close out 2021, I want to express my gratitude for another year filled with unexpected blessings, opportunities to test our fortitude and time spent with those people who make life interesting, meaningful and fun. Never to dismiss the challenges that we face, each one unique and personal, but it is with optimism and hope that I look towards 2022. At Rose Street Advisors, we continue to experience the meaning of balance, continuity, and stability with a burning desire to be the best at what we do. It is more than a cliché to say that “the only consistent thing in life is change”. We must embrace change, that doesn’t mean forgetting the things of the past that make us who we are. I am proud that our team is committed to service, the pursuit of excellence and giving others the benefit of the doubt. For us to look forward, we must first look back. What has made our business successful, what does it mean to be community-minded? What is good and noble about our country, our families, and our relationships that we should run to, not from? Like a swimmer at the starting blocks, ready to push off into the water, we hold tightly to those ideas and beliefs that have built the foundation we now are using to jump forward from; time-tested ideas like integrity, friendship, resilience and doing work we enjoy with people we enjoy. The Rose Street Advisors team is ready and excited for the new year because we won’t forget who we are, and that our clients are at the heart of all we do. We are reminded of our core value that “What we do and how we do it matters” because of who we serve and how our services impact the lives of so many in our community. Thank you for allowing us to play a small part in your 2021 and for continuing our partnership into the year that lay ahead. With gratitude from our Rose Street Advisor’s family to yours, here’s to a prosperous and fruitful New Year! Rob Hunt

Rob Hunt

LIC, CLU | PRINCIPAL & CHIEF EXECUTIVE OFFICER

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