Insurance product needs evolve in life when circumstances
change, simply by age or through events i.e. marriage, buying a home, or having
children. The list is endless. Here is a sampling of products and who they
likely will help. Please remember this is a general list and every person
should consult a professional for specifics for their situation.
The beauty of what I’m doing is I am not confined to a
single provider. Once a product is determined to meet your needs we can align
the best provider whether it is lowest cost, best riders, or specific terms
provided by a specific provider.
Annuities (ages 40
plus) Anyone that has a 401K from a previous employer is also a great
For someone that wants to take market volatility out of the
equation. This product has a guaranteed interest rate (higher than a bank CD).
It can be used as a single payment premium and annuitized over a particular
time period; the remaining unused money is transferred to a beneficiary. The other option is guaranteed payment for
the rest of one’s life (lower monthly annuity payments and upon death payments
discontinue) which may be used for someone without a beneficiary.
If applied properly a younger person could use this through
ongoing payments into the annuity but illuminate the opportunity for higher
growth through equities or funds.
Life Insurance (ages
0-45)
Payout likelihood and
cost difference
Both term insurance and permanent insurance use the same
mortality tables for calculating the cost of insurance. A death benefit which
is income tax free; however, the premium costs for term insurance are
substantially lower than those for permanent insurance.
The reason the costs are substantially lower is that term
programs may expire without paying out, while permanent programs must always
pay out eventually. To address this, some permanent programs have built in cash
accumulation vehicles (whole and Universal Life) to force the insured to
"self-insure", making the programs many times more expensive.
Other permanent life insurance policies do not have built in
cash values (whole and Universal Life). The policy owner may have the option of
paying additional premium in the early years of the policy to create a tax
deferred cash value. If the insured dies and the policy has a cash value, the
cash value is often paid out tax free in addition to the policy face amount.
Insurance industry studies indicate that the probability of
filing a death benefit claim under a term insurance policy is low.[citation
needed] One study placed the percentage as low as 1% of policies paying a
benefit. The low payout likelihood allows term insurance to be relatively
inexpensive. Because of the low likelihood of an insurer having to pay a death
benefit, term insurance may offer more coverage per premium dollar - by a factor
of up to 10.
Life Insurance (50 -
80)
Final Expense
These policies are designed for lower income people who
would like to ensure they don’t leave the burden of funeral expense to their
survivors. The premiums are usually less than $100 per month but the benefit is
capped at $50,000 for most providers.
Whole Life (ages 50-80)
Whole life insurance is a life insurance policy that remains
in force for the insured's entire life and requires (in most cases) premiums to
be paid every year into the policy. As opposed to Term Insurance in which
premiums rise as the client gets older Whole life stabilizes the premiums
(usually until age 120) and payments discontinue at 120 years of age and
premiums are considered paid in full. There is cash value component to this
policy but the cash value portion can be used to reduce premiums.
Long Term Health
Insurance (ages 50-80)
This type of policy covers basic daily needs over an
extended time. While health care insurance or Medicare helps pay for immediate
medical expenses, say, a surgeon's bill, long-term-care insurance helps people
cope with the cost of chronic illnesses, such as Alzheimer's disease, or
various disabilities. The policies pay for assistance with everything from the
basics — bathing and dressing — to skilled care from therapists and nurses for
months or even years.
If someone has assets they would like to keep intact for
following generations this is a good policy. This would alleviate the necessity
to reduce assets to qualify for Medicare / Medicaid while receiving
professional assistance.
Prior generations have been very suspect of assisted living
arrangements and would prefer spending their final days, months, or years in
the confines of their own home. These policies do cover home care or assisted living
sites.
Disability Insurance (ages
20 to 60)
Disability income insurance is a form of insurance that
insures the beneficiary's earned income against the risk that a disability
creates a barrier for a worker to complete the core functions of their work.
For example the inability to maintain composure as with psychological disorders
or an injury, illness or condition that causes physical impairment or
incapacity to work. It encompasses paid sick leave, short-term disability
benefits, and long-term disability benefits.[1] Statistics show that in the US
a disabling accident occurs on average once every second.[2] In fact, Nearly
18.5% of Americans are currently living with a Disability, and 1 out of every 4
persons in the US workforce will suffer a disabling injury before retirement.
Critical Illness /
Dread Disease Insurance with return of premium (ages 20-60)
These policies pay a lump sum payment should someone be
stricken with a critical illness or dreaded disease. Terms vary from 10 to 30
years. In the event the policy pays out you still receive your all of your
premiums back. The insurance companies
invest the funds over the period you’re covered and the money is returned
without interest. The upside is should you require payment it’s there and when
the coverage period ends you get the money back
Cancer - Heart - Stroke
Chances of your house burning down: 0.08%
·
Chances of being involved into an auto accident:
4%
·
Chances of developing a critical illness before
you are 65: 35%
·
Chances of developing a critical illness before
you are 81: 65-70%
Accident insurance
with return of premium (ages 20-60)
These policies pay a lump sum payment should someone injure
themselves and require medical attention.
Terms vary from 10 to 30 years. In the event the policy pays out you
still receive your all of your premiums back.
The insurance companies invest the funds over the period
you’re covered and the money is returned without interest. The upside is should
you require payment it’s there and when the coverage period ends you get the
money back.
Medicare Supplement
Insurance (ages 65 and higher)
A Medicare supplement (Medigap) insurance, sold by private
companies, can help pay some of the health care costs that Original Medicare
doesn't cover, like copayments, coinsurance, and deductibles.
Some Medigap policies also offer coverage for services that
Original Medicare doesn't cover, like medical care when you travel outside the
U.S. If you have Original Medicare and you buy a Medigap policy, Medicare will
pay its share of the Medicare-approved amount for covered health care costs.
Then your Medigap policy pays its share.
Medicare Advantage
Plans (ages 65 and higher)
Medicare Advantage Plans, sometimes called "Part
C" or "MA Plans," are offered by private companies approved by
Medicare. If you join a Medicare Advantage Plan, you still have Medicare.
You'll get your Medicare Part A (Hospital Insurance) and Medicare Part B
(Medical Insurance) coverage from the Medicare Advantage Plan and not Original
Medicare.
Medicare pays a fixed amount for your care each month to the
companies offering Medicare Advantage Plans. These companies must follow rules
set by Medicare.
However, each Medicare Advantage Plan can charge different
out-of-pocket costs and have different rules for how you get services (like
whether you need a referral to see a specialist or if you have to go to only
doctors, facilities, or suppliers that belong to the plan for non-emergency or
non-urgent care). These rules can change each year.
Life Insurance
Term Assurance
(annual renewal at potentially higher rates)
Term Assurance provides coverage at a fixed rate of payments
for a limited period of time, the relevant term. After that period expires,
coverage at the previous rate of premiums is no longer guaranteed and the
client must either forgo coverage or potentially obtain further coverage with
different payments or conditions. If the life insured dies during the term, the
death benefit will be paid to the beneficiary. Term insurance is the least
expensive way to purchase a substantial death benefit on a coverage amount per
premium dollar basis over a specific period of time.
This product is considered when current income level meets
current needs and if one or both (if married and both are working) die the
other is left with meeting the ongoing financial needs with less income.
Level term life
insurance
Much more common than annual renewable term insurance is
guaranteed level premium term life insurance, where the premium is guaranteed
to be the same for a given period of years. The most common terms are 10, 15,
20, and 30 years.
In this form, the premium paid each year remains the same
for the duration of the contract. This cost is based on the summed cost of each
year's annual renewable term rates, with a time value of money adjustment made
by the insurer. Thus, the longer the term the premium is level for, the higher
the premium, because the older, more expensive to insure years are averaged
into the premium.
Return Premium Term
life insurance
A form of term life insurance coverage that provides a
return of some of the premiums paid during the policy term if the insured
person outlives the duration of the term life insurance policy.
For example, if you own a 10 year return of premium term
life insurance plan and the 10 year term has expired, the premiums paid by the
owner of the life insurance policy will be returned less any fees and expenses
which the life insurance company retains. Usually, a return premium policy
returns a majority of the paid premiums if the insured person outlives the
policy term.
The premiums for a return premium term life plan are usually
much higher than for a regular level term life insurance policy.
Providers Offered
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