Investing & Insurance FAQs
A fiduciary is an individual, corporation or agent holding assets for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party.
A trustee is an individual or organization which holds or manages and invests assets for the benefit of another. The trustee is legally obliged to make all trust-related decisions with the beneficiary’s interests in mind. Trustees may be entitled to a payment for their services
A legal arrangement in which an individual (the Trustor) gives fiduciary control of property to a person or institution (the trustee) for the benefit of beneficiaries.
Estate Planning can be a very complex job, and is not something to be taken lightly. First Hawaiian Bank can work with you and your attorney to properly guard your assets for the future.
For more information, call us at 525-7134 or toll-free at 1-888-287-0398. You can also visit any conveniently located First Hawaiian Bank branch and ask for a Wealth Advisor.
Having a will is good, but it's just the beginning of Estate Planning. You must, first and foremost, consider your goals as they pertain to your family and estate. You must also include smart tax planning, because estate taxes can significantly diminish the wealth you want to leave to your family. Keeping estate taxes as low as possible means more wealth to your family.
Yes, proper Estate Planning will help you identify and reach the goals you set for your estate. Most of all, it will help you to leave the kind of legacy you want to your loved ones.
Note: Tax laws are subject to change (consult your Tax Advisor)
- Leaving the Estate to Your Spouse - A U.S. citizen can leave all assets to his or her spouse without having to pay federal estate taxes, as long as the spouse is also a U.S. Citizen. While this seems to be a good solution for minimizing estate taxes, leaving a sizable estate to your spouse can create even larger estate tax problems when your spouse dies.
- Leaving the Estate to Your Children or Grandchildren - Federal estate tax applies to assets left to anyone other than your spouse if the amount exceeds the Unified Credit Amount. In addition, a Generation Skipping transfer tax may apply in the case of gifts to grandchildren.
- Giving Away Assets During Your Lifetime - Giving away some of your assets during your lifetime may be a good idea. Remember, you must meet your own needs before giving away your assets. You should also keep in mind that you and your spouse can each give $15,000 adjusted for inflation) per year to each child, grandchild, or any other individual, with no federal gift tax.
- Giving Assets to Charity - This can be a source of valuable tax deductions, and can be a useful part of your estate plan.
Both the Federal government and the State of Hawaii have the right to tax assets owned by a person when they die, before their heirs are permitted to use those assets. The State of Hawaii instituted an estate tax in 2010 and the Federal Government continues to have an estate tax. Therefore, it is very important to be certain your estate plan takes estate taxation into consideration.
Nine months after a person dies, estate taxes are due in cash payable to the Internal Revenue Service and the State of Hawaii. The executor of your estate may be forced to auction a family heirloom, part with stocks you wanted the family to keep, liquidate business assets, sell property, or borrow money to pay estate taxes.
Estate Planning is the process of preparing a strategy for transferring your assets at death. This includes your home, personal possessions, bank accounts, stocks, bonds, business, and other financial interests.
As you near the age of retirement, you may begin to wonder if you will have enough money to retire comfortably and will have the means to maintain your standard of living. The best way to assure this is to prepare ahead with a solid Financial Plan.
There are three common sources of retirement income that most people count on: Social Security, a company pension plan, and personal savings.
Whether you intend to invest for long-term financial independence, retirement, your children’s college education or to build a nest egg for unexpected emergencies, our experienced professionals can assist you in developing investment strategies that help you work toward your personal and financial goals.
Our team of investment professionals, insurance specialists, private bankers, trust officers and wealth advisors combine their extensive knowledge and resources to create a portfolio that reflects your specific objectives, risk tolerance and time horizon. It’s a process that includes thoughtful and objective manager selection, rigorous oversight and regular review and evaluation of results with our clients.
First Hawaiian Bank offers strategies to help you make investment decisions in:
- Business Planning
- Education Planning
- Retirement plans for:
- Self-employed individuals
- Estate Planning
General Insurance Services Questions
Our experienced professionals offer personal assistance to help you select the types of insurance that are best suited for your personal, business and estate planning needs at the most competitive price.
Benefits of working with First Hawaiian Bank:
- Caring and experienced local professionals who are easily accessible
- Comprehensive and Confidential insurance review
- Competitive Rates (Quotes from multiple vendors)
- Companies you can trust (Top rated & Pre-screened)
First Hawaiian Bank's many insurance programs are designed to provide you with a solid financial future and peace of mind by giving you the protection you need in the event of death, disability, or a condition that requires long-term care. For the individual, insurance augments a comprehensive financial plan. For businesses, insurance enhances employee compensation programs and protects the business in the event of a principal’s untimely passing.
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It's best to start with your monthly and yearly family budget. See how much income you currently need to provide you and your family with the type of lifestyle you've chosen.
Next, determine how much coverage you already have as a result of your employment or through a government program. You can ask your employer for details. You may also want to include any savings you have that can be used in such emergencies.
If these benefits approach the amount of income you require to maintain your current standard of living, then you probably have enough coverage. However, if the total amount of benefits plus your own personal resources fail to meet your income needs, you should consider additional disability insurance.
Disability insurance is especially important if you are self-employed or are a small business owner, since many business owners are crucial to their company's day-to-day success.
There are a number of factors that make up insurance policies. You need to know what these areas are and what kind of coverage is necessary for you and your family.
- Definition of disability - Select a policy that pays benefits when you can't work in your field of choice or something appropriate for your education and experience.
- Extent of coverage - Are benefits available for total or partial disability? Does the policy cover accident and illness? What about loss or sight, hearing, speech, etc.,?
- Benefit size - What percentage of your income is replaced?
- Waiting period - How long will it take for your benefits to begin?
- Duration of benefits - Are benefits paid for one, two or five years, to age 65, or a lifetime?Inflation rider - Does the policy offer cost-of-living adjustments?
- Renewability - Is the policy non-cancelable, guaranteed renewable, or conditionally renewable?Waiver of premiums - How long must you be disabled before premiums are waived?
- Option to purchase more coverage - Can you increase your coverage without further evidence of insurability?
Sources of disability income stem from three main areas:
- Employer-paid and/or employer-sponsored programs - The simplest form of disability income is provided by sick leave, which can last from a few days to as long as six months, depending on your employer. Some larger employers also provide long-term disability benefits, which typically begin after a 90-day waiting period and usually replace about 60% of your salary. Such benefits often continue for five years, or to the age of 65.
Group disability insurance can be fully paid by your employer or may require an employee contribution. In either case, you should find out as much as you can about the group disability insurance provided by your employer. Ask for information and particularly ask the following questions.
- How long must I wait before benefits begin?
- How long will payments continue during my disability?
- Will other coverage, such as government programs, affect my disability payments?
- Government-sponsored programs - Two well known government programs that provide disability income are Workers Compensation and Social Security. Workers Compensation pays disability benefits if you have an accident at work or you get an illness that results directly from your employment. Social Security benefits can last up to 12 months but are dependent upon many other factors such as marital and family status, salary, and whether you're eligible for other government programs.
You may also be eligible for disability benefits if you are a State or Federal government worker, a veteran, or are participating in a State vocational rehabilitation program. People with low income and limited assets may also be covered under Supplemental Security Income or Medicaid.
- Individual Policies - Despite the number of disability income sources, many people don't have insurance or are largely underinsured. If your income were to stop if your ability to work stopped, then having adequate disability insurance is essential to you and your family.
An individual policy can be tailored to fit your specific income needs and will provide crucial income if you are unable to work.
Disability Insurance is designed to replace wages lost due to sickness or injury, and is the best way to protect against financial catastrophe. Proper health insurance should cover the majority of your medical costs, but it won't replace lost income.
Mortgage Life Insurance
As long as you're a homeowner under age 65, you're eligible to apply. Once your coverage is approved, your premium will be automatically billed and collected with your monthly mortgage payment, so there's no extra bill to bother with each month.
There's absolutely no risk in applying for the mortgage life insurance plan. You may cancel your coverage at any time. Once you've been approved for coverage, a policy or certificate of insurance will be sent to you with the coverage details. You'll have 30 days to look it over. If you decide this coverage isn't for you, simply return the policy or certificate to us and your coverage will be canceled. If any premiums were paid in that time, they will be promptly returned.
Many households rely on two incomes to make ends meet. Mortgage life insurance provides a way to insure against the loss of a working spouse or co-borrower at a premium that is half the cost of the premium rate of the oldest of the co-borrowers.
Mortgage Life pays a benefit for any cause of death, with the exception of suicide committed during the first two years of coverage.
This plan offers you an affordable way to make sure the benefits will be used to pay off your mortgage. Mortgage life insurance takes care of your outstanding mortgage loan so that your other insurance policies, if available, can be used to cover expenses like monthly bills, a college education or retirement.
Mortgage Life Insurance ensures that your loved ones will continue to have a place called home in the event that you’re no longer there to care for them. The Mortgage Life Insurance plan is designed to pay off the outstanding mortgage balance on your home if you die during the term of the loan.
Long-Term Care Insurance
With long-term care insurance, you can rest easy. Your policy can't be canceled (except for nonpayment of premiums), and your premium cost can remain level throughout the years. But most importantly:
- You may not need to deplete your life savings to obtain care for yourself.
- You may be able to maintain your independence.
- You may be able to take care of yourself without relying on government welfare programs.
- Your family and loved ones may not have to sacrifice their assets and savings to care for you.
- You will be able to preserve your assets and pass them on to your heirs.
- You may be able to choose the location for your care.
There are many different kinds of policies available. And costs can vary among policies, and among insurance companies offering the same type of coverage. For the best peace of mind, look for these features in a long-term care policy:
- Can the premium costs remain the same from year to year, regardless of your age?
- Do you have inflation protection as the cost of care rises?
- Will the conditions to qualify for your insurance benefits be fair and reasonable? For example:
- Will your qualification for benefits be based on your disability (your inability to care for yourself), rather than on your specific disease or physical condition?
- Will the insurance company forgive (waive) your premium payments while you are disabled and drawing benefits?
- Can you and your spouse share in the benefits you each are guaranteed, in case one of you needs more (and longer) care?
Long-term care insurance is not a one-size-fits-all arrangement. You can decide which coverage you need - and where you'll need it - based on your family situation. You can structure a plan that covers any or all of these types of care: Nursing Home and Assisted Living, Home Care, Professional Home and Community Care, or Total Home Care.What's more, your coverage doesn't have to be all-or-nothing. Your benefits can kick in when you require substantial assistance with as little as two out of the six activities of daily living (ADLs).
Long term care insurance can provide the assistance you might need in the event of a prolonged illness or disability, while relieving your family from financial and emotional burdens.
In a nutshell, it is a protection plan that pays you a set amount when you can no longer live independently. It can help pay your nursing home costs, your assisted living costs - even your costs when you are disabled and confined to your home. Whenever you can't perform some of the essential activities of daily living (ADLs) - eating, bathing, getting out of bed, going to the bathroom, walking, dressing yourself, etc. - your long-term care insurance will cover the cost of caring for you.
It pays no matter what your age: a 30-year old with a permanent spinal injury, or an 85-year old unable to perform simple daily functions such as eating or dressing.
Long-term care insurance gives you peace of mind. And it protects your investments and your estate you've worked so hard to accumulate.
As people live longer, long-term care insurance is more important than ever. Under federal law enacted in 1996, premiums may be tax deductible and benefits tax free if you own a tax qualified long term care policy.
There are many types of long-term care policies available with a variety of options and features. We survey the market to offer our customers only the best products from the highest rated companies in the industry. If for some reason the plans we offer don’t quite suit your needs, we’ll shop outside for the best plan for you. That’s First Hawaiian Bank’s commitment to you as our valued customer.
The amount of life insurance will vary depending on your personal and family situation. In general, life insurance needs are created whenever you have a change in life events such as marriage, starting a family or business, or retirement. To determine how much life insurance you need, use this simple test to help you develop a solid foundation for your financial plan.
Financial experts agree that the foundation of any good financial plan includes life insurance. A well-designed life insurance program can improve and enhance your retirement, estate planning and family protection plans.
The amount, type of insurance and the duration of your life insurance policy will depend on your family situation, your financial goals and your health.
An individual life insurance policy is normally purchased to accomplish the following goals:
- Support family members in the event a wage earner dies prematurely
- Compensate for the loss of a spouse who is also the children's primary care provider
- Financially support parents, family members or children with special needs
- Repay any mortgage, personal or business debts
- Pay for final expenses such as medical, burial, legal or probate costs at death
- Pay for educational or retirement needs
- Fund an inheritance or charitable bequest
- Pay for Federal Estate Taxes which may be due upon death
Have more questions?
Or call customer service at (808) 844-4444.