Insurance and annuities are tools for managing risk and protecting income, helping safeguard your family and your wealth against events you cannot fully predict. At TSG Wealth Management, we offer a range of tailored insurance and risk management options, from life and liability coverage to annuities and long-term care, chosen to fit your broader financial plan rather than sold in isolation.
Insurance and Annuity
Protecting Your Income, Your Assets, and Your Family
What role do insurance and annuities play in a wealth plan?
Insurance and annuities form the protective layer of a wealth plan. Where investing focuses on growing your assets, insurance and risk management focus on protecting what you have built: replacing income if something happens to you, shielding your assets from liability claims, and providing dependable income in retirement. TSG helps you identify the gaps and match them with appropriate coverage.
Life Insurance Options
Life insurance helps provide for the people who depend on you if you pass away. TSG can help you evaluate which type fits your needs and stage of life, including:
- Whole and term life insurance
- Universal and variable life insurance
Term insurance covers you for a set period, while permanent options such as whole and universal life last your lifetime and can build cash value over time.
Liability Insurance and Umbrella Coverage
Liability insurance protects your assets if you are held responsible for injury or damage to others. For individuals with significant assets, an umbrella policy adds a layer of coverage above your home and auto policies, helping protect your wealth from a large claim or lawsuit.
Income Preservation: Annuities, Disability, and Long-Term Care
Protecting your income is as important as protecting your assets. TSG can help you consider options that provide income stability through retirement and unexpected events, including:
- Fixed and variable annuities
- Disability insurance
- Long-term care coverage
Annuities are long-term vehicles, and any guarantees are based on the claims-paying ability of the issuing insurance company.1
How TSG Approaches Insurance and Risk Management
TSG approaches insurance as part of your overall plan, not as a standalone product sale. We start with your goals and the risks you actually face, then help you match coverage to those needs and coordinate it with your investments, retirement, and estate plans.2
How Insurance Connects to Your Estate and Tax Planning
Insurance often plays a role in estate and tax strategy. Life insurance can provide liquidity to help cover estate taxes or equalize inheritances among heirs, and annuities grow tax-deferred until you withdraw from them. TSG coordinates these decisions with your estate planning, working alongside your existing CPA or tax advisor, with dedicated tax services available through TSG Tax Management, a separate entity not affiliated with Wells Fargo or Wells Fargo Advisors Financial Network.3
Frequently Asked Questions
What is the difference between term and whole life insurance?
Term life insurance covers you for a set period, such as 10, 20, or 30 years, and pays a benefit only if you pass away during that term. Whole life insurance is permanent coverage that lasts your lifetime and can build cash value over time. The right choice depends on your goals and how long you need coverage.
What is an annuity?
An annuity is a contract with an insurance company in which you contribute money and, in return, receive payments either immediately or in the future, often used to create a stream of income in retirement. Annuities can be fixed or variable, and any guarantees are based on the claims-paying ability of the issuing insurance company.
What is the difference between a fixed and a variable annuity?
A fixed annuity provides a set, predictable rate of return, while a variable annuity’s value rises or falls based on the performance of the investments you choose, which means it carries investment risk. Both are long-term vehicles, and guarantees depend on the claims-paying ability of the issuer.
What is umbrella insurance, and do I need it?
Umbrella insurance is extra liability coverage that sits above the limits of your home and auto policies, helping protect your assets if you face a large claim or lawsuit. It is often worth considering for people with significant assets to protect, though whether it fits depends on your situation.
What is long-term care insurance?
Long-term care insurance helps cover the cost of extended care, such as a nursing home, assisted living, or in-home care, that standard health insurance and Medicare generally do not pay for. It can help protect your retirement savings from being drained by care expenses later in life.
How are annuities taxed?
Annuities generally grow tax-deferred, meaning you do not pay taxes on the earnings until you withdraw them, at which point withdrawals are typically taxed as ordinary income, and withdrawals before age 59½ may face an additional penalty. Because the details depend on your situation, TSG works alongside your existing CPA or tax advisor, and dedicated tax services are available through TSG Tax Management.3
Protect what you have built.
Contact TSG Wealth Management or call 562.414.0900 to review your insurance and risk management needs.
1 Annuities are long-term investment vehicles designed for retirement purposes. Guarantees are based on the claims-paying ability of the issuing insurance company. Variable annuities and variable life insurance are sold by prospectus; please consider the investment objectives, risks, and expenses carefully before investing.
2 Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.
3 Wells Fargo Advisors Financial Network and TSG Wealth Management are not legal or tax advisors. You should consult your own tax advisor before taking any action that may have tax consequences.