Types of Retirement Solutions
Final Expense
Here’s a type of insurance that covers the cost of your funeral and burial, and ensures your loved ones don’t struggle financially in those testing times.
Advantages
- Covers cost of burial or cremation
- Premium never increases
- No medical exam needed
- Affordable
Disadvantages
- Low payout compared to life insurance – Face amount is between $5,000 and $40,000, which may not necessarily cover all needs when you are moving on.
Annuities
An annuity is a contract between an insurer and insured, where the latter pays the company an amount, either a lump sum or through installments. This entitles the insured to an income stream at a future date from the insurer. At Lambert, we specialize in offering fixed and indexed annuities. Read more about this insurance based retirement plan.
Fixed Annuities
Advantages
- Simple and easy to understand
- Predicted face amount
- Tax-deferred growth
- Principal is protected and guaranteed to grow at a fixed rate
- Generally speaking, 10% of your funds can be accessed without penalty yearly
Disadvantages
- Penalty for early withdrawal
- Lower rate of return vs some other less safe investments
Indexed Annuities
Advantages
- Principal is protected from market volatility
- Guaranteed minimum return
- Index gains are locked in
- Gains are locked in
Disadvantages
- Upside potential is limited
- Gains of your contract can be capped
- Steep penalty for early withdrawal
Long Term Care Insurance
Under this, a personal retirement account holder is eligible for coverage that provides nursing home care, assisted living, or home-health care for individuals age 65 and above or with a chronic disease or disabling condition.
Advantages
- Can be tailored to fit individual needs
- Tax-free benefits
- Protects retirement savings from depletion
- Family can be care managers instead of caregivers
Disadvantages
- Can be expensive at older ages
- Premium rates are not always guaranteed
- Can be difficult to qualify for