Building a Legacy: How Permanent Life Insurance Creates Family Wealth

You don’t need millions to leave something meaningful—just a smart plan and the right tools.

We all want to leave something behind—something that matters.
But when most people hear the word “legacy,” they picture trusts, estates, lawyers, and generational wealth… and assume it’s out of reach.

Here’s the truth: Legacy isn’t just for the ultra-wealthy.
With the right life insurance strategy, everyday families can build long-term security and pass down real value—tax-free, with no drama, and no court dates.

Let’s talk about how permanent life insurance—like Indexed Universal Life (IUL) or Whole Life—can help you build a legacy that lasts.

Why Life Insurance Is More Than “Just In Case”

Traditional term insurance is great for covering a mortgage or income gap in case something unexpected happens.

But permanent life insurance does more. It’s not just “in case”—it’s a living asset.

• It builds cash value over time

• That value grows tax-deferred

• You can access it while you’re still living

• And it still leaves behind a guaranteed tax-free benefit to your family

💡 Chart: Life Insurance as a Living Asset

Here’s how permanent life stacks up against term life:

Feature	Term Life	Permanent Life (IUL/Whole)
Coverage Length	10–30 years	Lifelong
Builds Cash Value?	No	Yes
Can Be Used While Living?	No	Yes, through loans or withdrawals
Tax-Free Payout to Heirs?	Yes	Yes
Retirement/College Planning Use?	No	Yes

What You Can Do With It (While You're Still Here)

Let’s say you’ve had your permanent policy for a while. That cash value is quietly growing in the background—unaffected by market downturns, in the case of Whole Life, or linked to market indexes with downside protection, if it’s an IUL.

You can use those funds to:

• Help a child or grandchild with college

• Take care of unexpected medical expenses

• Supplement your own retirement income

• Make a down payment on a property

• Fund a family-owned business

It’s your money—accessible without triggering taxes (if structured as policy loans). It’s a self-funded safety net.

And When You’re Gone? It Gets Even Better

The real power of permanent life insurance is what happens after you pass.

• The death benefit passes tax-free to your beneficiaries

• It does not go through probate

• It can be used to pay off debt, keep property in the family, or seed wealth for the next generation

And if you really want to get intentional, you can name a trust as the beneficiary and give detailed instructions for how the money should be used—for example:

• Educational costs only

• Milestone-based distributions

• Long-term support for a special needs child

• Funding a legacy donation to your church or nonprofit

It’s a simple setup, and we can help you talk through how it works.

📊 Chart: Passing Wealth — Retirement Accounts vs Life Insurance

Category	Traditional Retirement Account	Life Insurance Policy
Taxes on Inheritance	Yes – income tax for beneficiaries	No – proceeds are income tax-free
Required Distributions?	Yes, RMDs apply	No RMDs
Probate Process?	Often yes	No – paid directly to beneficiary
Legacy Control	Limited	High – can be tied to a trust or instructions

So What’s the Catch?

None of this works by accident.
You need to:

• Pick the right kind of policy

• Fund it correctly

• Avoid things like MEC status (we can explain that)

• Keep it structured for tax efficiency

But once it’s in place? You’ve created a quiet, steady source of wealth—usable now, and lasting beyond your lifetime.

Final Thought: You Don’t Need to Be Wealthy to Build Wealth

You just need to start with the end in mind.

Whether you want to leave behind $25,000 to cover final expenses, or $500,000 to fund future education, a properly built permanent life insurance plan can help you do it—without taxes, delays, or confusion.

Your legacy doesn’t have to be flashy.
It just has to be yours—intentional, protected, and passed on the right way.

Want to Explore What This Could Look Like for You?

We’d be glad to walk you through it—no pressure, no push.
Just real strategies, real numbers, and real peace of mind.

📞 (423) 510-9197
🌐 www.stockmanagency.com
📍 Chattanooga, TN

Work Policy or Yours to Keep? Why Ownership Matters More Than Ever in Insurance Planning

Why Ownership Matters More Than Ever in Insurance Planning

The job might change — but your coverage shouldn’t have to.

The Setup Has Changed

It used to be simple:
You’d work 30 years for the same company, retire with a pension, and live on whatever coverage came with the job.

Today? Not so much.

Careers shift. People change jobs. Freelance. Work remotely. Get laid off. Start side businesses. Return to school.

In this world of constant movement, one question matters more than ever:
Do you own your life insurance policy—or are you just borrowing it from your employer?

Work Policies: The Illusion of Security

Most employer-provided life insurance or disability policies seem convenient at first. But they come with limitations:

• ❌ You don’t own the policy

• ❌ You can’t take it with you when you leave

• ❌ You usually lose coverage when changing jobs or retiring

• ❌ You rarely have options for customization or growth

Work coverage ends when your employment does. And in today’s job market, that's not a long-term plan.

📊 Comparison: Work Policy vs. Owned Policy

Feature	Work Policy	Owned Policy
Ownership	Not owned by you	Fully owned by you
Portability	Ends when job ends	Goes wherever you go
Coverage Flexibility	Employer sets terms	You choose coverage amount and type
Cash Value Growth	None	Available with IUL, Whole Life, etc.
Retirement Use	Not designed for income planning	Can support tax-free retirement income
Access to Funds	None	Policy loans or withdrawals (if applicable)

Owned Policies: Control, Flexibility, and Growth

When you own your life insurance policy:

• ✅ It stays with you—no matter what job you take next

• ✅ You control the type, coverage, and beneficiary

• ✅ You can build cash value with permanent options like Indexed Universal Life (IUL) or Whole Life

• ✅ You create a tax-advantaged income stream for later in life

• ✅ You protect your family, on your terms

Why This Matters Now More Than Ever

The average American changes jobs 12 times in their career.
Most workers under 40 change jobs every 3–5 years.

Meanwhile:

• The gig economy is booming

• Remote work is reshaping employer benefits

• Early retirement is on the rise

• Small business ownership is more common than ever

If your life insurance ends with your job, you’re potentially starting from zero every time.

✅ Who Should Consider Owning Their Policy?

• ✔️ Freelancers and gig workers

• ✔️ Small business owners

• ✔️ Remote or contract employees

• ✔️ Professionals who change jobs often

• ✔️ Anyone who wants long-term financial growth

• ✔️ Anyone planning around future tax flexibility

What About Cost?

A lot of people assume owning their own policy is too expensive.

But term life insurance for a healthy adult in their 30s or 40s can be as little as $35/month.
That’s less than many people spend on streaming services.

And permanent life insurance, like Indexed Universal Life (IUL), not only provides lifelong coverage—it also:

• Grows tax-deferred

• Offers market-linked growth potential with downside protection

• Can be used for tax-free income in retirement

• Doesn’t require employer involvement

The Bottom Line

If your current job disappeared tomorrow…
Would your life insurance go with it?

Owning your own policy means:

• You’re never caught without protection

• You’re building long-term financial value

• You’re in control—no matter where life or work takes you

The job might change. The company might downsize.
But your coverage? That should be yours to keep.

Ready to review your current coverage or explore policy options that grow with you?
We’re here to help.

📍 Stockman Insurance Agency
4202 Brainerd Road, Chattanooga, TN
📞 (423) 510-9197
🌐 www.stockmanagency.com

Overfunded Retirement? Here’s Why an IUL Might Be the Best Problem Solver You’ve Never Heard Of

How Indexed Universal Life can help you turn tax-time stress into long-term strategy.

Most people spend their working years trying to save enough for retirement. That’s the goal, right?

But here’s the twist: some people actually reach a point where they’ve saved “too much” in the wrong buckets. We’re talking about traditional 401(k)s and IRAs—tax-deferred accounts that look great on paper but come with strings attached.

If you’ve been saving aggressively, contributing the max each year, maybe even getting a generous employer match—congrats. That’s a great position to be in. But eventually, you might start asking:

“Am I going to get hit with a tax wall in retirement?”
“What else can I do to give myself options?”

If that sounds like you, this post is for you. Let’s talk about Indexed Universal Life (IUL)—a lesser-known tool that might be the missing piece in your long-term plan.

What’s an IUL, in Plain English?

An Indexed Universal Life policy is a type of permanent life insurance that does more than just protect your family if something happens to you.

Think of it like a hybrid vehicle:

• Part life insurance

• Part growth account

• Built for long-term flexibility and tax efficiency

Here’s how it works:

• You pay premiums, just like any life insurance policy

• A portion goes toward a death benefit (what’s paid out when you pass)

• The rest goes into a cash value account that grows over time

• That growth is tied to a market index (like the S&P 500), but with built-in downside protection

That means your account participates in market upside (up to a cap), but never loses value in a downturn (thanks to a 0% floor).

Why Overfunded Retirees Should Care

If you’re already maxing out your 401(k), you know the rules:

• Tax-deferred growth sounds good now

• But later on, you’ll pay ordinary income tax on withdrawals

• And once you hit your 70s, the IRS says: “Time to take RMDs”

• Those Required Minimum Distributions can bump you into a higher bracket and shrink your Medicare subsidy

Here’s where an IUL becomes a secret weapon.

When you overfund an IUL, you’re putting more money in than just the cost of the insurance. That extra money goes into your cash value account, growing tax-deferred and available tax-free later via policy loans (if structured correctly).

In short: you’re building a tax-free retirement bucket—and one that doesn’t come with government strings attached.

Real Example: Meet Lisa

Lisa is 45. She’s been saving well, maxing out her 401(k), and has a healthy emergency fund. She’s now earning more than ever and is looking for ways to diversify her retirement strategy.

She opens an IUL and chooses to overfund it for the next 20 years, using money she would’ve otherwise parked in a brokerage account.

By the time she’s 65, her policy has:

• A healthy death benefit to leave behind

• A growing cash value that can provide tax-free income

• No RMDs to deal with

• And no exposure to market crashes during drawdown years

Lisa now has a third leg of her retirement plan: not taxable like a 401(k), not limited like a Roth, and not tied to market volatility like her brokerage account.

Key Advantages of an IUL

✅ Tax-Free Access to Funds
Withdrawals via policy loans (done properly) are tax-free and don’t affect Social Security or Medicare thresholds.

✅ Market Growth Without Market Risk
Indexed growth lets you ride the wave when the market is up—but avoids the drop when it’s not.

✅ No Income or Contribution Limits
Unlike Roth IRAs, IULs aren’t limited by how much you earn. You can contribute as much as the policy structure allows.

✅ Legacy + Liquidity
You get a life insurance benefit and cash value growth in the same vehicle.

✅ Flexibility in Retirement
Need to skip a payment during a rough year? IULs often offer premium flexibility other vehicles don’t.

Things to Watch Out For

An IUL isn’t magic—it’s a tool. And like any financial tool, it needs to be used properly. A few key notes:

• Watch for MEC status. If you overfund too quickly, it can turn into a Modified Endowment Contract, which changes the tax treatment.

• Fees exist. Yes, there are costs associated with insurance—but they’re often offset by the growth potential and tax advantages over time.

• It’s not short-term. If you want access in a few years, this may not be the best fit. IULs work best when you have a long runway.

Who This Strategy Works Best For

This isn’t just for high-net-worth individuals. We see it work for:

• Professionals in their 30s to 50s who want tax-free retirement income

• Business owners looking to bonus themselves efficiently

• Parents funding college and building long-term value

• Anyone worried about future tax rates and RMD headaches

If you’ve ever thought, “I want more control over my money later,” this is something to explore now.

Final Word

If you’ve already done the hard part—saved, built, and planned—then maybe the next step is about optimizing what you’ve created.

An IUL isn’t a replacement for a 401(k). It’s a complement—a tool that fills in the gaps, softens the tax blows, and gives you more ways to enjoy your retirement instead of stress over it.

It’s not for everyone. But for those who qualify and structure it right, an Indexed Universal Life policy could be the smartest piece of your retirement plan no one’s told you about.

We’re here when you’re ready to run the numbers.

Stockman Insurance Agency
📍 4202 Brainerd Road, Chattanooga, TN
📞 (423) 510-9197
🌐 www.stockmanagency.com

Flood Insurance: What Most Homeowners Don’t Know (But Should)

Why it’s not included in your regular policy—and why it might be smarter to have it anyway.

When most people think about home insurance, they assume it covers everything: wind, fire, theft, even floods. But here’s the truth:

Flood damage is almost never covered by a standard homeowners insurance policy.

That might sound like a technicality, until you’re standing in ankle-deep water and realize the repair bill is yours to pay.

So… What Counts as a Flood?

Insurance companies define a flood as rising water from outside your home—like heavy rain, overflow from rivers or creeks, storm surge, or even a broken dam. It doesn’t have to be a natural disaster. It just has to come from outside and affect two or more properties or two or more acres.

If a pipe bursts inside your house, that’s usually covered.

If rainwater floods your basement after a storm, that’s usually not—unless you have flood insurance.

Is Flood Insurance Expensive?

Here’s the good news:
For most people who don’t live in a high-risk flood zone, flood insurance is surprisingly affordable.

• FEMA’s National Flood Insurance Program (NFIP) offers coverage starting around $300–$700 per year

• That’s about $25 to $60/month for peace of mind

• Even in higher-risk areas, private flood insurance options exist that may offer better rates or broader coverage

And unlike some types of insurance, flood policies don’t require a full home inspection to quote—you just need your address and a few key details.

📌 (Confirmed: As of 2025, FEMA’s average annual premium for low-to-moderate risk areas ranges from $400 to $800 depending on coverage limits.)

Why It Matters Even If You’re Not “High Risk”

Floods don’t follow maps. In fact:

• Over 25% of flood claims come from homes outside high-risk zones

• Flash floods, drainage backups, and severe storms are becoming more frequent

• FEMA flood maps don’t account for construction changes, climate shifts, or blocked storm drains

Translation? You don’t have to live near a river to get hit by rising water.

How It Works

Flood insurance typically covers:

• Structural damage to your home

• Electrical and plumbing systems

• HVAC and water heaters

• Appliances and foundation

• Personal belongings (if contents coverage is added)

There’s usually a 30-day waiting period unless required by a mortgage—so it’s not a last-minute add-on.

What You Can Do Today

If you’re not sure whether you have flood coverage, ask. It’s not a dumb question—it’s a smart one.

We can tell you:

• Whether you’re in a designated flood zone

• What a real policy would cost for your address

• If private flood insurance might be a better fit

And if you’re already protected, we’ll make sure your coverage levels still make sense.

Final Thought

Nobody thinks they’ll need flood insurance—until they do. And by then, it’s too late to add it.

If you’re already protecting what matters most, don’t leave this one off the list.

Let’s check your policy.
Let’s talk about what you actually need.
Let’s make sure the coverage fits your life—not just your address.

Stockman Insurance Agency
📍 4202 Brainerd Road, Chattanooga, TN
📞 (423) 510-9197
🌐 www.stockmanagency.com

The Real Cost of Waiting to Buy Life Insurance

What you don’t know could cost more than you think.

Most people don’t wake up thinking, “Today’s the day I buy life insurance.”
It’s one of those things that sits on the “I’ll get to it later” list—right next to cleaning out the garage or setting up a will.

But here’s the thing: the longer you wait, the more it costs—not just in money, but in peace of mind. And the truth is, waiting could leave your family unprotected at the very time they need you most.

Time Isn’t on Your Side (At Least Not Here)

Life insurance rates are based largely on two things: your age and your health. And let’s be honest—neither of those usually improves over time.

Estimated Monthly Premiums
(20-Year Term, Healthy Non-Smoker)

Age	Estimated Monthly Cost
30	$24/month
40	$34/month
50	$65/month
60	$120/month

Estimates vary by company, but the trend is clear: waiting costs more.

And if your health changes—blood pressure, weight, or a new diagnosis—you could see rates double or even become ineligible for coverage altogether.

What Waiting Really Costs

It's not just about premiums. Waiting can cost you:

• ✅ Access: Some people wait too long and find out they no longer qualify.

• 💰 Cash Value Growth: Permanent policies build value over time. Starting later means less long-term benefit.

• 🧾 Financial Burden: The older you are when you buy, the higher the cost over the policy’s lifetime.

If you're paying $120/month at age 60 instead of $24/month at age 30, that's nearly $23,000 more over 20 years—and that’s assuming you qualify.

Common Excuses We Hear (and Why They Don’t Hold Up)

“I’ll get it when I have more money.”
Rates are lowest when you're young. A modest policy now beats a pricey one later—or none at all.

“I’m healthy. I don’t need it yet.”
That’s exactly why now is the time. You’re buying with your current health, not tomorrow’s unknown.

“It’s probably too expensive.”
Most people overestimate the cost. Many are surprised to learn how affordable coverage really is.

Term vs. Permanent: Know the Difference

We’ll walk you through the options, but here’s a quick breakdown:

Feature	Term Life	Indexed/Universal Life	Permanent Life
Cost	Lowest cost	Moderate—flexible premiums	Highest initial cost
Coverage Duration	10–30 years	Lifetime (if funded properly)	Lifetime
Cash Value	None	Yes, with market-linked growth potential	Yes, grows at a fixed rate
Investment Potential	None	Earns based on market index (with limits)	Low but steady accumulation
Best For	Short-term needs, affordability	Those who want growth without direct market risk	Long-term planning, legacy, guarantees

We can help you find the right mix based on your goals and budget.

What You Can Do Today

You don’t need to make a major decision today. But starting the conversation is easy—and free. Here's what you can do right now:

• 📞 Call us for a quick quote, or click <HERE> to start the process

• 📝 Ask questions about the types of coverage

• 🧭 Get honest guidance from a local team that knows the ins and outs

No pressure. No hard sell. Just a little clarity and a plan that fits your life.

Closing Thoughts

Waiting to buy life insurance might seem harmless now—but it adds up. Higher costs, fewer options, and more risk for your loved ones.

If you’ve been putting it off, we get it. Life’s busy. But this is one of those things that’s easier to check off than you think—and more valuable than you know.

Let’s talk.

Stockman Insurance Agency
4202 Brainerd Road, Chattanooga, TN
📞 (423) 510-9197
🌐 www.stockmanagency.com

A Smart Way to Reward (and Keep) Your Best Employees

How local business owners are using life insurance to stay competitive—without the red tape

When you run a business, there’s always something competing for your attention: customers, payroll, inventory, taxes. But one of the hardest things to juggle these days?

Finding and keeping good people.

It doesn’t matter if you’ve got 3 employees or 30. If someone on your team shows up early, solves problems, builds trust with clients, or keeps things running behind the scenes—they’re worth hanging onto. The question is: how do you make it clear they matter, without stretching your budget or getting buried in paperwork?

Here’s one option you might not have considered:
An executive bonus plan funded with life insurance.

It’s not as complicated as it sounds. In fact, this kind of plan is surprisingly simple, tax-efficient, and flexible. Let’s break it down.

What’s an Executive Bonus Plan, Anyway?

An executive bonus plan is a way to reward top employees with something more meaningful than a holiday gift card—but still easy to implement. The basic idea is this:

• You give a bonus to your key employee.

• That bonus is used to pay for a life insurance policy (or annuity) that the employee owns and controls.

• The bonus is a tax deduction for your business.

• The employee can use the plan as retirement support, or a portable financial asset that stays with them—even if they change jobs later on.

That’s it.

No government filings. No long-term tracking. No major compliance headaches.

You stay in control. Your employee gets a real, long-lasting benefit.

Why This Works for Small Business Owners

Large companies have teams of HR professionals and benefits departments. You don’t. That’s what makes executive bonus plans so attractive for businesses like yours.

These plans can help you solve what some folks call “The Four Rs” of employee management:

1. Recruiting

Want to stand out when hiring? Offer something that shows long-term commitment. Candidates notice that.

2. Rewarding

Not every benefit plan gives you the freedom to pick and choose who gets what. Executive bonus plans let you reward your top performers—not just everyone across the board.

3. Retaining

When employees know they’re being invested in, they tend to stick around. And when the bonus is tied to something they own, that loyalty runs even deeper.

4. Retiring

Your employee wins here too. Life insurance policies (especially permanent ones) can build cash value over time, which can help supplement retirement income later in life.

And Yes, It’s a Win for the Employee Too

Let’s be real: employees want more than just a paycheck. They want to know their future matters. With an executive bonus plan:

• They get to choose the product (within reason).

• They own it. It’s theirs to keep, even if they leave the job.

• It’s flexible. If they pick a permanent life insurance plan, it can grow in value and offer real benefits down the road.

While the bonus is taxable income, many business owners choose to cover the taxes as part of the bonus—so the employee doesn’t take a hit.

Bottom line: this feels like a gift, not just a line on a paycheck.

Real Flexibility for Real Life

There are a few ways to structure a plan like this, depending on how much you want to contribute, whether you want the employee to chip in, or how you want to handle taxes. We can walk you through options like:

• Full funding (you cover the bonus + taxes)

• Matching contributions

• Tax-offset bonuses

You can even include what’s called a REBA (Restrictive Executive Bonus Arrangement), which lets you retain some control while still giving the employee ownership. That’s useful if you want to keep the benefit tied to long-term commitment.

A Door Into Bigger Conversations

For many of the business owners we work with, this starts out as a way to reward one or two key people. But it often grows into something bigger: a more complete strategy for retirement planning, succession, or even employee benefit branding.

And every time we help set up one of these plans, we also help protect families—yours and theirs.

Let’s Talk About It

You don’t need to be a large company to offer meaningful benefits. You just need the right tools—and a team that knows how to put them to work for you.

If you have a few people you’d like to reward, protect, or keep around longer, let’s have a conversation. We’ll show you how an executive bonus plan could work in your world—simple, smart, and built around your priorities.

Stockman Insurance Agency
Chattanooga, TN
📍 4202 Brainerd Road
📞 (423) 510-9197
🌐 www.stockmanagency.com

Why We Built This Site (and What You’ll Find Here)

Welcome to Agency Notes.

This is our blog, and if you’re reading this, chances are you’re already a little curious about what’s going on here. We’ve been around for more than 30 years, serving folks across Tennessee. Until now, we just never made much noise online. That changes today.

So why did we finally build a full website?

Simple. We wanted it to be easier for people to find us, understand what we do, and know who they're working with.

This isn’t just a place to check a box. It’s something we put real thought into, because we care about the people on the other side of the screen. You.

What This Site Is For

If you're a current client, this site gives you a better way to get in touch, find info, or send us questions. If you're new here, it gives you a sense of what we offer, how we work, and what matters to us.

You’ll find:

• Straightforward info about insurance — No jargon, just honest explanations about life, auto, home, Medicare, and more

• A clear way to reach us — No hoops, no endless menus

• A local touch — We’re a Chattanooga-based business, and we don’t forget that

What This Blog Will Cover

We’ll be posting a couple of times each month. Some posts will explain parts of the insurance world in plain English. Others will be more personal. You might hear from Henry, or one of us from the office. You’ll get stories, thoughts, updates, and the occasional reminder that you’re not alone in figuring all this out.

We’re calling this section “Agency Notes” because that’s what it is. Notes from the people behind the desk. Notes from your neighbors in the business. Notes from folks who get it.

One Last Thing

Thanks for stopping by.

Have a look around. Click over to the What We Do page if you’re curious about coverage, or head to the Contact Info page if you want to start a conversation.

We’re here when you’re ready.