As much as we try to prepare for them, tragic events like death, disability or critical illness sometimes strike. When faced with such a situation, insurance can protect policy holders and their families from undue hardship. For this reason, a variety of insurance coverage is essential to any comprehensive financial plan.
Insurance planning is best when tailored to fit its owner’s personal situation: whether designed for a single person or family; professional or seasonal employees; executive or small business owner, everyone can benefit from an appropriately customized plan.
Life insurance is more than planning for the security of one’s loved ones: it can be a cornerstone in any multi-generational financial strategy.
Life insurance can provide financial resources in a number of concrete ways, from immediate expenses such as hospital bills to income replacement and assistance in settling outstanding debts. It can also help with estate planning and charitable contributions. Furthermore, some forms of life insurance enjoy tax advantages, and so can be an ideal addition to any financial plan. In the event of death, life insurance offers surviving family members increased financial resources. As a tax-free lump sum payment, the so-called ‘death benefit’ can pay for final expenses and debts, as well as provide income for the deceased’s dependents.
There are two main ways to organize life insurance policies: term insurance and permanent insurance.
Term Insurance involves paying a premium to secure a death benefit payment to beneficiaries. It provides protection for a specified period and is usually renewable. There are several different kinds of term life insurance, including Level Term, Annual Renewable Term, Decreasing Term, and Return of Premium life insurance.
Permanent Insurance involves comparatively high premiums at first, but costs may drop significantly over the long term. Furthermore, some permanent insurance plans include a cash value, and associated tax-advantaged borrowing privileges. There are several kinds of permanent life insurance, including Variable Life, Whole Life, and Universal Life coverage.
The advantages of life insurance include:
- An instant estate for loved ones at a time when funds are most needed
- Death benefits are generally non-taxable
- Life insurance plans with a cash value component may offer tax-advantaged borrowing opportunities
- Some plans allow policy-holders to invest the cash value or death benefit in sub-accounts containing stocks, bonds, or other investments
- Gain tax advantages and help support a charitable interest through a charitable life insurance program
I can help you select coverage from a variety of life insurance options to manage the needs identified in your financial plan.
Life insurance can play a vital role in your financial plan—contact us today to find out how.
Long-term Care, Disability and Critical Illness insurance
Help guard against the impacts of an unexpected event through long-term care, disability and critical illness insurance.
Unfortunately, present forms of federal and state-sponsored health care programs do not comprehensively cover long-term care. Medicare generally offers temporary assistance, while Medicaid, which varies by state, may require out of pocket expenses and very low levels of asset value before public assistance becomes available.
Long-term care and disability insurance
Income is important for both current financial obligations (e.g. grocery bills and mortgage payments) and for future financial resources (e.g. planning for a child’s education or for retirement). Just think what might happen if an income stream was lost through a long-term illness or disability.Long-term care and disability insurance products help protect the ability to earn an income, which can be affected by a disability or other condition.
Advantages of long-term care and disability insurance products include:
- Helping maintain financial independence, lifestyle and long-term financial resources in the event income is impacted by disability
The two major types of disability insurance are Own Occupation Disability Insurance and Loss of Earning Disability Insurance. Own occupation disability insurance covers the ability of a disabled person to work in their own occupation, but may allow work in another job. Loss of earnings disability insurance provides payment for the percentage of income lost due to a disability.
A comprehensive financial plan can protect income through long-term care and disability insurance. Contact me today to find out which policies are for your unique circumstances.
Critical illness insurance
Suffering a critical illness is a distressing event. Help ease the burden through a type of insurance that may reduce financial stresses. By helping pay for the additional expenses often associated with a critical illness or condition, insurance offers individuals, families and if applicable, businesses, added financial resources —so the focus remains on recovery.
The advantages of critical illness insurance can include:
- Coverage encompasses a wide range of screening tests An initial lump-sum benefit of up to $500,000 that policy-holders can use however they wish—from making mortgage payments to home health care
- Employers or organizations can add value to benefit packages at an affordable cost
- Critical illness insurance pays a cash benefit if the policy-holder makes a full recovery
Contact us today to determine whether critical illness insurance fits into your financial security plan.
Health and dental insurance
A growing number of Americans - at least 15% of the population - don't have any health insurance coverage. Without health insurance, a single incident can cause serious financial hardship.
Some, but not all, employed individuals are covered under an employer’s group benefits plan. For those people not covered, a health plan can help cover out-of-pocket medical expenses. Health plans can provide various levels of enhanced healthcare protection, depending on the needs and stage of life of the purchaser.
There are two categories of health insurance coverage: fee-for-service and managed health care. Fee-for-service plans are more expensive, but allow individuals to select doctors and hospitals based on their needs and preferences. Managed health care plans are divided into health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point-of-service (POS) plans. All three generally charge a co-payment of $10 or $20 a visit. Managed care providers make most health care decisions, although PPOs and POSs allow some choice from the organization’s network of providers and the opportunity to see physicians outside the network.
Contact us to find out more about health care insurance for you and your loved ones.
Group health benefits
In today’s working environment, valued employees are looking for more than financial compensation. They also want an employer who supports their health, and the health of their families.
For this reason, either by itself or paired with group insurance products, consider attracting and retaining employees with group benefit plans. From traditional health and dental benefits to alternative arrangements like employee wellness programs, group auto insurance or flexible work situations, group benefits help make employees more efficient, productive, and happy. Employers also gain tax benefits, such as premiums that are deductible as a business expense in some cases.
Flexible plans offer employers and employees cost-effective, customized ways to address their needs. Choose from an array of benefits like:
- Extended health and dental care coverage, which includes options like prescription drugs, paramedical services, vision care, basic dental work and orthodontics
- Group life insurance
- Group short- and long-term disability insurance
- Employee assistance and wellness programs
- Alternative group benefits, such as group auto insurance or flexible work arrangements
- Group critical illness insurance coverage, to help ensure your employees can survive a critical illness
- Benefits plans tailored to specialized employee groups, such as foreign or part-time workers
Contact us today to learn more about benefits products and services that fit the needs of your business.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. You may also visit your state’s insurance department for more information.
Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.
Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. Withdrawals are taxed only to the extent that they exceed the policy owner’s cost basis in the policy and usually loans are free from current Federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding.
Investors should consider the investment objectives, risks, charges and expenses of the variable insurance contract and sub-accounts carefullybefore investing. The prospectus and, if available, the summary prospectus contains this and other information about the variable insurance contract and underlying investment options. You can obtain prospectuses and summary prospectuses from your financial representative. Read prospectuses and summary prospectuses carefully before investing.