Life and Financial Concepts
What Kinds of Life Insurance is There?
(1) Term life insurance is a more affordable insurance that is in effect for a specific amount of time. Policies are available for a variety of terms such as 5, 10 or 20 years. Term life insurance provides a larger policy for the same monthly fee as a whole term policy. Many people choose to have a term life insurance policy while they are raising their children to ensure the family is provided for should something happen to them. Providing for a spouse is also an important reason to purchase term life insurance. Because there are a variety of choices for length of policy term life insurance can be purchased or added to any time a life event happens. Term life insurance may be available through an employer, but many experts recommend having an additional policy that is not dependent on a specific job.
(2) Whole life insurance provides permanent protection for your dependents while building a cash value account. With this type of insurance, the insurance company manages the policies various accounts.
(3)Variable life insurance provides permanent protection for you and is the type of life insurance with account flexibility for the more risk-oriented policy holder.
(4)Universal life insurance provides permanent protection for your dependents and is more flexible than whole or variable life.
LONG TERM CARE INSURANCE- FINANCIAL PLANNING
Long term care insurance can be confusing, no matter who you are, especially if you don’t know who to turn to for expert advice.
The good news is that I can help you find exactly what you’re looking for – easy LTCi policy evaluation and comparison. Find your best options when we discuss your needs today.
The Facts Are Clear
Anyone with even a passing experience with Alzheimer’s, stroke, Parkinson’s or elder frailty can appreciate the severity and financial devastation of these all-too-common life events and the inevitable care required. This is why we want protection.
* The average Ancient Greek lived until age 18. The median life span of a Puritan was 33. The average American life expectancy is now about 75 years for men, 84 for women. Over half of Americans will spend part of these these extended years in long term care situations.
* By 2030, one in five Americans will be a senior citizen. If you are a Baby Boomer, this includes you. Americans are living longer and healthier, thanks to better diet, better medical care and safer living & working environments. Yet no one is immune to the effects of aging and longevity – effects that often result in reduced physical or mental ability.
* In 1994, 7.3 million Americans needed long term care (LTC) services at an average cost of nearly $43,800 per year. By 2000, this number rose to 9 million Americans at nearly $55,750 per year. It’s currently near $75,000 per year. By 2030 those needing LTC will skyrocket to 23+ million Americans, with projected, individual long term care costs reaching $300,000 annually per individual!
DISABILITY INSURANCE- FINANCIAL PLANNING
Every disability insurance plan has a definition of total disability in the policy, you should always know the exact language of this definition before you own anything.
There are three basic types:
-
True Own-Occupation
-
Modified Own-Occupation
-
Gainful Occupation
Own-Occupation Disability Insurance
The most comprehensive definition of total disability available. This type of policy will have a definition that says:
The inability to perform the material and substantial duties of your regular occupation, the insurance company will consider your occupation to be the occupation you are engaged in at the time you become disabled, they will pay the claim even if you are working in some other capacity.
Own-occupation disability insurance is the only plan that does not penalize somebody for going back to work in a different occupation while on a claim. Under this type of plan, the bottom line is if because of a sickness or injury you can not perform in your occupation, you will be considered totally disabled, even if you choose to do something else.
Income Replacement Insurance
This has become the most common definition of total disability in the industry today. Most insurance carriers that have stopped offering own-occupation disability insurance have moved to an income replacement definition. You will find the first part of the definition is very similiar to an own-occupation definition, but it is with the second part that the major change occurs. A typical income replacement definition will look something like this:
Because of sickness or injury you are unable to perform the material and substantial duties of your occupation, and are not engaged in any other occupation.
As you can see there is a major difference between an income replacement and an own-occupation definition of total disability. The income replacement definition will penalize you during a claim if you make the decision to go back to work, or earn another source of earned income while on a claim. I have found that most people if given the choice would go back to some work if possible, under this plan if somebody wants to go back to work in some capacity, the insurance company may offset your monthly benefit check. There is a common misconception that own-occupation disability insurance costs a lot more than an income replacement policy.
Gainful Occupation Coverage
This definition of total disability is very common in an employer sponsored group long term disability insurance policy, or with property and casualty insurance companies that decided to release a disability insurance policy. It is quite simply the worst definition available and should be at the very least supplemented with a quality contract if not replaced entirely. This definition basically leaves the determination of whether or not you are disabled up to the insurance company.
What Type of Annuity is right for me?
Here are the types of typical annuities. Deciding on which is best for you is a matter of consulting with an experienced financial advisor!
| Immediate | Lifetime | Deferred |
| Fixed | Variable | Indexed |
|
Barrood Agency, Inc.
|
Allen Levine and Associates
|
|
50 Paterson Street
|
1140 Rte.22 East, Suite 202
|
|
New Brunswick, NJ 08901
|
Bridgewater, NJ 08807
|
|
Office: 732.247.8664
|
Office: 908.252.2354
|
|
Website: www.Barrood.com
|
Website: www.allen.levine.finlsite.com
|
