Category: Uncategorized

Posted on March 26, 2025 by Bass Financial LLC

Hey there, Minnesota friends and beyond! Big news from the insurance world: according to Swiss Re’s latest Sigma report, global non-life insurance premiums are set to hit a decade-high growth rate of 4.3% in 2024. That’s a hefty jump, and it’s got our team at Bass Financial LLC buzzing about what it means for families, businesses, and our clients right here in Minnetonka and across the U.S. Let’s break it down—and see how we can turn this trend into an opportunity for you.

What’s Driving This Surge?

Swiss Re, a global reinsurance leader, points to one major factor: repricing of risk. Over the past few years, insurance claims have spiked—think natural disasters, inflation-driven repair costs, and even social trends like rising lawsuit payouts. Insurers have responded by adjusting premiums to match these higher risks, pushing non-life premiums (that’s property, casualty, health—everything but life insurance) to this 4.3% growth peak in 2024. It’s the highest in ten years, and it’s not slowing down just yet.

Here’s the kicker: while growth is expected to taper to 2.3% annually in 2025–2026 (still solid, but below the past five-year average of 3.1%), the industry’s adapting to a “new normal” of elevated risks. Hurricanes, wildfires, and even everyday claims like car repairs are costing more, and insurers are pricing accordingly.

Why It Matters to You

You might be thinking, “Great, higher premiums—how’s that good news?” Fair question! At Bass Financial, we see this as a wake-up call and an opportunity. Rising premiums reflect a world where protection is more valuable than ever. Whether it’s safeguarding your home from Midwest storms, covering your business against unexpected losses, or ensuring your health plan keeps up with rising costs, the right insurance isn’t just a safety net—it’s a financial superpower.

The Swiss Re report also highlights profitability improvements—non-life insurers are expecting a 9% return on equity in 2024, climbing to 10% in 2025–2026. That’s a sign of a healthy industry, which means more options and innovation for consumers like you. But it also means premiums won’t drop anytime soon—so locking in smart coverage now could save you headaches (and dollars) later.

How Bass Financial Can Help

Here at 601 Carlson Pkwy, Suite 1050, Minnetonka, MN, we’re not just watching these trends—we’re acting on them. Our team partners with over 50 top carriers to find you tailored non-life and life insurance solutions, whether it’s term life, Indexed Universal Life (IUL), or property and casualty coverage. With this 4.3% growth signaling a hard market, our expertise can:

• Compare Options: We sift through the noise to find policies that balance cost and coverage, even as premiums rise.
• Future-Proof Your Plan: With inflation and risk on the upswing, we’ll help you adjust your coverage to stay ahead.
• Leverage Our E&O Backing: Every agent’s backed by Errors & Omissions insurance, so you’re working with pros you can trust.

What’s Next?

The insurance landscape’s shifting, but you don’t have to navigate it alone. Swiss Re predicts non-life premiums will keep growing through 2024, then stabilize—giving us a window to get your coverage right. Want to see how much protection you need? Try our to estimate your needs in minutes. Or, better yet, let’s chat—our team’s ready to personalize a plan that fits your life and budget.

Call us at (651)769-3944 today, and let’s turn this global trend into your personal win. At Bass Financial LLC, we’re here to make insurance work for you—not the other way around.

Stay protected,
— The Bass Financial Team

Why Indexed Universal Life (IUL) Insurance is the Ultimate Gift for Future Generations

When parents think about securing their child’s future, they often consider savings accounts, college funds, or even investment portfolios. However, more families today are turning to Indexed Universal Life (IUL) insurance as a powerful financial tool that can provide lifelong benefits. Unlike traditional life insurance, an IUL offers cash accumulation, tax advantages, and long-term financial security, making it one of the smartest gifts a parent can give their child.

What is an IUL and How Does It Work?

An Indexed Universal Life Insurance (IUL) policy is a type of permanent life insurance that includes a cash value component. The policyholder pays premiums, and a portion of those payments goes into a cash account that grows based on stock market performance—without the risk of losing money when the market declines. The cash value accumulation can be accessed tax-free and used for any purpose, whether it’s education, a home purchase, or even retirement.

Why Parents Are Choosing IULs for Their Children

Traditionally, parents would open savings accounts or contribute to a 529 college savings plan for their child’s future. While these are good options, an IUL provides more flexibility and benefits that extend far beyond college.

1. Cash Accumulation Over Time

One of the greatest advantages of starting an IUL policy at a young age is the power of time. The earlier a policy is opened, the more time the cash value has to grow. By the time a child reaches 20 years old, they could have a substantial amount saved up—ready to use for college, a first home, or even to keep growing for retirement.

2. Tax-Free Growth & Withdrawals

Unlike traditional savings and investment accounts that may be subject to taxes, the cash value in an IUL grows tax-free. When the child reaches adulthood, they can withdraw funds without triggering tax penalties, making it a strategic way to access money for major life events.

3. Protection & Security

An IUL doesn’t just build cash value—it also includes a death benefit that provides financial protection in case something happens to the policyholder. This ensures that the child will always have some level of financial security in place.

4. No Market Risk

Many parents worry about investing money into the stock market due to volatility. With an IUL, the cash value is tied to a market index (such as the S&P 500), but it has a floor to protect against losses. This means that even if the stock market crashes, the child’s savings will remain protected.

How Much Can a Child Accumulate by Age 20?

Let’s consider an example:

• A parent starts an IUL policy for their newborn, contributing $200 per month.
• The policy earns an average of 6% interest per year.
• By the time the child turns 20, the policy could have $50,000 – $70,000 in cash value, depending on market performance and policy terms.

If the child chooses to keep the policy active, the funds can continue to grow for decades, potentially reaching hundreds of thousands of dollars by the time they retire.

Long-Term Benefits: The Retirement Advantage

While many parents open IUL policies to help their children with early financial milestones, the real power of an IUL lies in its ability to serve as a retirement vehicle. If the child continues funding the policy, they could accumulate six to seven figures in cash value by retirement age, providing them with a tax-free income stream for life.

IUL vs. Other Savings Options

Why You Should Start an IUL Policy for Your Child Today

• The younger the child, the lower the cost of insurance.
• More years of compounding interest means higher cash value accumulation.
• A tax-free, penalty-free way to access funds for college, home buying, or emergencies.
• Can serve as a retirement safety net.

Final Thoughts

An Indexed Universal Life (IUL) policy is one of the smartest financial decisions a parent can make for their child. Unlike traditional savings accounts, an IUL grows with tax-free advantages, market protection, and lifelong benefits. Whether used for college, a first home, or retirement, an IUL can provide financial security and generational wealth for decades to come.

If you’re interested in setting up an IUL policy for your child, contact us today and take the first step toward securing their financial future!

What is Final Expense Life Insurance?

Final Expense Life Insurance is a whole life insurance policy designed to cover the costs associated with end-of-life expenses, including funeral and burial costs, outstanding medical bills, and unpaid debts. Unlike traditional life insurance policies that often require a medical exam and extensive underwriting, final expense insurance is much easier to qualify for, making it an excellent option for seniors and those with pre-existing health conditions.

Why Do You Need Final Expense Life Insurance?

Many people assume that Social Security or their savings will cover funeral expenses, but the reality is quite different. The average funeral today costs between $7,000 and $12,000, depending on services chosen. Cremation services, while slightly less expensive, can still cost thousands of dollars. Without a plan in place, these costs can become a burden on family members during an already difficult time.

Here are the main reasons why Final Expense Life Insurance is a smart decision:

✅ Covers Funeral and Burial Costs – Helps pay for a funeral, headstone, casket, or cremation services.
✅ Pays Off Medical Bills – Unpaid hospital or hospice care bills can add up quickly.
✅ Eliminates Family Financial Burden – Your loved ones won’t have to struggle to cover expenses.
✅ Leaves a Legacy – You can provide a small inheritance or donate to a cause you care about.
✅ Guaranteed Coverage – Most policies do not require a medical exam, making it easier to qualify.

How Does Final Expense Insurance Work?

Final Expense Insurance works similarly to traditional life insurance but with simplified underwriting and smaller benefit amounts, typically ranging from $2,000 to $25,000. Premiums are affordable and remain the same for life, meaning you never have to worry about them increasing. Your policy builds cash value over time, which you can borrow against if needed.

Who is Eligible for Final Expense Insurance?

Most final expense policies are available for individuals between the ages of 50 and 85, but some providers offer coverage starting as young as 40. Even if you have a pre-existing medical condition, you can still qualify. In fact, there are guaranteed acceptance policies available for those who may not qualify for traditional life insurance.

Types of Final Expense Policies

There are two main types of Final Expense Insurance:

1️⃣ Simplified Issue Final Expense Insurance – Requires basic health questions but no medical exam. Approval is quick, and coverage starts immediately.
2️⃣ Guaranteed Issue Final Expense Insurance – No health questions and automatic approval, but a waiting period (usually 2 years) applies before full benefits are paid.

How Much Does It Cost?

Final Expense Insurance is one of the most affordable types of life insurance, with premiums starting as low as $20 to $50 per month, depending on age, gender, and coverage amount.

How to Choose the Right Final Expense Policy

When shopping for final expense insurance, consider the following: ✔️ Coverage Amount – Determine how much your loved ones will need to cover funeral and other expenses.
✔️ Premiums – Make sure the policy fits your budget and won’t increase over time.
✔️ Company Reputation – Choose an insurance provider with strong financial stability.
✔️ Policy Features – Some policies offer riders, such as accidental death benefits or cash value accumulation.

Get Peace of Mind Today!

Final Expense Life Insurance is an affordable, simple solution to ensure your loved ones aren’t left with financial stress. Whether you’re looking for funeral coverage, debt relief, or a small inheritance for your family, this policy can provide the security you need.

Demystifying Whole Life Insurance: Building Wealth and Security for the Future

Introduction:
Life insurance can be a complex topic, but understanding its benefits and potential for wealth accumulation can provide invaluable peace of mind. In this article, we’ll break down the basics of whole life insurance, focusing on how the cash value accumulates and the advantages it offers compared to term life insurance.

1. How Cash Value Accumulates:
   Whole life insurance policies offer a unique feature known as cash value accumulation. With each premium payment, a portion goes towards the policy’s cash value, which grows over time. Take Henry, for example. Henry’s issue age recently changed, but by backdating the policy date to reduce his issue age from 37 to 36, he can potentially enjoy lower premiums and enhanced savings. With a premium of $388.94 per month scheduled for life, Henry’s contribution will accumulate to a projected cash value of $106,400 in 20 years. This cash value grows tax-deferred, meaning Henry won’t pay taxes on its growth until he withdraws it, providing a valuable asset for various financial needs.
2. Benefits of Whole Life Cash Value Policies vs. Term:

• Lifelong Coverage: Unlike term life insurance, which provides coverage for a specific period, whole life insurance offers coverage for life, ensuring that your loved ones will receive a death benefit no matter when you pass away.
• Cash Value Growth: Whole life policies build cash value over time, providing a valuable asset that can be accessed for emergencies, retirement, or other financial needs.
• Tax-Deferred Growth: The cash value in a whole life policy grows tax-deferred, providing significant tax advantages for long-term wealth accumulation.
• Guaranteed Premiums: Whole life insurance premiums are typically guaranteed not to increase for the life of the policy, providing stability and predictability in your financial planning.
• Estate Planning Benefits: Whole life insurance can play a valuable role in estate planning, providing liquidity to cover estate taxes, debts, and other expenses without the need to sell assets or deplete savings.

Conclusion:
Whole life insurance offers a powerful combination of lifelong coverage, cash value accumulation, and tax advantages that can provide financial security and peace of mind for you and your loved ones. By understanding how cash value accumulates and the benefits of whole life cash value policies compared to term insurance, you can make informed decisions to protect your financial future. Consult with a qualified insurance professional to explore your options and find the right whole life insurance policy to meet your needs and goals. Start building wealth and security for the future today with whole life insurance.

Exploring the Diverse Landscape of Whole Life Insurance: A Comprehensive Guide

Introduction:
Whole life insurance stands as a pillar of financial security, providing lifelong coverage and a myriad of benefits. Within the realm of whole life insurance, various products offer unique features tailored to individual needs and preferences. In this article, we’ll delve into the different types of whole life insurance products available, helping you navigate the landscape and make informed decisions about your financial future.

1. Traditional Whole Life Insurance:
   Traditional whole life insurance, also known as straight or ordinary whole life insurance, is the most common form of whole life coverage. It offers guaranteed premiums, death benefits, and cash value accumulation over time. With fixed premiums and a guaranteed death benefit, this option provides stability and peace of mind for policyholders and their loved ones.
2. Universal Whole Life Insurance:
   Universal whole life insurance adds flexibility to the traditional whole life model by allowing policyholders to adjust premiums and death benefits over time. This option offers greater control and customization, making it suitable for individuals with fluctuating financial needs or those seeking more dynamic coverage options.
3. Variable Whole Life Insurance:
   Variable whole life insurance combines the benefits of whole life coverage with investment opportunities. Policyholders have the option to allocate a portion of their premiums to investment accounts, such as mutual funds or separate accounts. While this option offers the potential for higher returns, it also carries greater risk due to market fluctuations.

1. Indexed Whole Life Insurance:
   Indexed whole life insurance ties cash value growth to the performance of a stock market index, such as the S&P 500. This option offers the potential for higher returns compared to traditional whole life insurance, while still providing downside protection against market downturns. Indexed whole life policies typically come with a guaranteed minimum interest rate, ensuring a level of security for policyholders.
2. Participating Whole Life Insurance:
   Participating whole life insurance, often offered by mutual insurance companies, allows policyholders to share in the company’s profits through dividends. These dividends can be used to purchase additional coverage, reduce premiums, or accumulate cash value over time. Participating policies offer the potential for enhanced returns and increased policyholder benefits.

Conclusion:
Choosing the right type of whole life insurance is a crucial step in securing your financial future and protecting your loved ones. Whether you prioritize stability, flexibility, or investment growth, there’s a whole life insurance product to suit your needs. By understanding the differences between traditional, universal, variable, indexed, and participating whole life insurance, you can make informed decisions that align with your long-term goals and aspirations. Consult with a qualified insurance professional to explore your options and find the perfect fit for you and your family.