Sam (not his real name) was in his 40s when he decided to increase the premium on his life insurance policy. Business at the restaurant was going well and his family ranch had a mortgage with a favorable interest rate. Less than a year later, he passed away suddenly.
“His wife always thanks me because she never imagined they needed so much,” says Gabriel Tovar, Austin native and CEO of Tovar Financial Group. Less than a year before, Tovar had encouraged Sam to increase his premium from $100,000 to $750,000. “She would have had to go back to work and they could have lost the ranch,” Tovar says. Sam’s real name is being withheld for confidentiality reasons.
Driven by a desire to relieve family stress, make a difference in the world and enrich people’s lives, Tovar Financial Group specializes in simplifying financial planning. Tovar’s congeniality and compassion is comforting to his clients and his matter of fact delivery simplifies what is to many, a daunting task.
“When it comes to saving for the future it's overwhelming,” he says. “Medicare is confusing. Retirement, long term care, living insurance. I get to see every scenario.”
“It may sound cheesy, but it really is an act of love. When someone is investing in their future to leave a legacy for their family, it is an act of love,” says Tovar. “This business can really change people’s lives.”
With 28 years of experience, Tovar has seen a lot of older people struggle because they didn’t plan for their future. That is why he encourages people to start saving money young, so that they can maximize the financial tools available for the long term.
One of his favorite financial products is the IUL - Index Universal Life - an insurance policy combining a death benefit with cash value growth based on equity indexes like the S&P 500. IULs protect investors from losing their cash and allow policyholders to adjust premiums. Accumulated cash can be used to pay for home improvements, college tuition and medical expenses as well as the insurance premiums.
“It allows you to borrow from yourself,” he says. Once I learned about it, I took one out for my wife and both of my daughters.”
As the primary breadwinner of his family, Tovar knows first hand what it is like to have to pivot his livelihood because of a tragedy. “I used to be in printing but I crushed my finger so I changed careers,” he said.
When he wasn’t able to work with his hands anymore, he decided to become an independent insurance agent in South Austin servicing low income communities. Two decades later his business has grown to the point where he travels the world going to seminars with a mentor organization, Secure Agent Mentor.
Having seen the benefits of mentor relationships, Tovar has adopted a mentoring mentality as another way to give back in his business. This summer he is excited to work with his daughter and not only mentor her, but find new people to mentor by offering free financial planning seminars once a month at restaurants in Hill County and beyond.
“As a father knowing you can set up your kids to be financially independent, why wouldn’t you build your kids a tax-free account?” he says.
He hopes to replicate the success he’s had in South Austin in Hill County by educating people about the benefits of getting life insurance while they are young.
Another case Tovar is proud of is the living insurance policy he got for an 18 year-old with Leukemia. His client only ended up having to pay $1,000 for a $40,000 bill because Tovar guided him through the process.
“There are a lot of ways to protect people when they need long term care,” he says.
The Upside of Indexed Universal Life (IUL) Insurance
- Living Benefits: Many IULs allow access to death benefits early for chronic or critical illnesses or a other lifestyle changes.
- Flexible Premiums: Policyholders can adjust premium payments, or skip them if the cash value is high enough to cover costs.
- Market Upside with Downside Protection: Cash value growth is tied to an index, but a 0% floor ensures no losses due to market dips.
- Tax-Advantaged Cash Value: Cash value accumulates tax-deferred and it can be accessed tax-free via policy loans or withdrawals if structured properly.