Insurance

There are two basic forms of life insurance: Term and Whole Life.

TERM LIFE: This insurance is just as promised. It covers you for a specific period or term. Usually in increments of 10 years: 10, 20, and 30 year policies are available. This insurance is often referred to as “pure” insurance and offers few frills but provides the most cost-effective death benefit.

Whole life insurance AKA cash value life insurance comes in several policy forms. The most recognized variations are Whole Life, Universal Life, and Variable Universal Life. The biggest difference, aside from cost, is these policy types carry a cash accumulation component and Term insurance does not.

WHOLE LIFE: This coverage is generally the most expensive in term of premiums. As the name implies, this type of insurance will provide coverage for your whole life. The policy can be paid up in 10 or 20 years, or premiums can be made for life. This type of policy offers a fixed premium that can not typically be altered without lapsing the coverage.

UNIVERSAL LIFE: This coverage is a bit of a cross between term and whole life. It combines the lower cost of term insurance with a cash value component and lifelong coverage. This coverage is sometimes referred to as Flexible Life as both the insured and insurance company can make changes to the policy.

For more on the various forms of life insurance or help in determining the appropriate coverage for you and your family, please contact us.

Disability insurance is the one type of insurance that pays you. Most other insurance coverages pay someone else on your behalf. Whether your hospital bill, damage to your car or to your beneficiary should you die, the payout goes to a third party.

Disability insurance pays you directly. It helps you maintain your standard of living while you recover from an injury or sickness by providing income during your recovery. There many ways to design a policy to fit your needs. You can select the time frame you wish to receive benefits from 1 to 5 years up to retirement age. Typically, disability insurance replaces up to 60 percent of your income. Set up correctly, the payout can be a tax fee income stream. Disability insurance may be one of the most underutilized coverages. Disability insurance could also be considered the most important of all insurances for its ability to help you stay true to your planning even when you are unable to earn an income.

To find out more and to see if disability insurance is right for you, please contact us.

1 in 3 people may need some type of long-term care assistance during their lifetime. With costs nearing $80 to $90 thousand each year, that could be a devastating impact to your financial wellbeing.

There are various methods to set up long-term care funding. Three examples include: Traditional Long-Term Care policies, Hybrid Policies, and Annuities with LTC Riders.

TRADITIONAL LONG-TERM CARE POLICIES: This type of plan will most likely be the lowest initial cash outlay of the three options. This is the term insurance of Long-Term Care protection. Usually a no-frills plan that pays the benefits that best fit your needs. You determine the monthly benefit, the number of years you want coverage, and what the policy covers. While this is the most affordable option, it is not without drawbacks. Being a type of health insurance, the premiums are not usually guaranteed and could be raised over the years. Premiums paid would be lost if you live your life without any need for long-term care assistance.

HYBRID LTC POLICIES: This type of plan has been around for a while now and with some of the improvements being made could be one of the better options available. These policies are life insurance contracts with an accelerated benefit rider added for long term care. Just as with traditional LTC plans, you determine the monthly benefit, the number of years you want coverage, and what the policy covers. Hybrid policies can provide access to cash built up inside the plan. Perhaps later in life you have a financial hardship and your situation changes. You can draw on the cash in the policy to help meet your new needs. If you should die and not need or use your LTC benefits, your heirs would receive a death benefit. This type of policy gives you three ways to recover your premium payout. Access to the internal cash built up, a death benefit to named beneficiaries and payments for Long-Term Care.

ANNUITY WITH LTC RIDER: This type of protection is best suited for those who see the need for long-term care protection, but may not be in the best health. With this type of plan, you make an initial premium payment into an annuity. An added LTC rider allows you to leverage the annuity and create a benefit payment that surpasses the initial amount deposited. This option offers you the freedom to use your money for long-term care, as income, or to pass to your beneficiary any unused portion of your annuity.

To find out more how Long-Term Care Planning could fit into your overall plan and which option may be best suited for your needs please contact us.