Information You Need to Know Before Purchasing Insurance
Most experts advocate 5-10 times your salary though this can be a very personal issue for a lot of our clients. Another approach may be to use an income needs analysis tool like the one available at http://www.life-line.org/. (This site is for educational purposes only.)
Term life insurance provides low cost coverage for a defined period of time. We offer ten, fifteen, and thirty year level term although, the best buy for the money is typically a twenty year level term. The defined period is the length of time the rate remains the same. Selection of a term policy should coincide with anticipated obligations over a defined period.
For one term insurance option, see: https://www.afquote.com/?agent_id=AFA03312&applicant_state=GA.
Some people need insurance at an affordable rate for as long as they live. This type of coverage is called permanent insurance. As you get older this becomes increasingly important. For example, if you were sixty-five and purchased ten-year level term, what are you going to do if you need coverage after age seventy-five? A level plan for life would have been a better choice.
"The best time to buy life insurance is right before you need it." Normally, if we knew that, the rate would be prohibitive because of some medical problem. So, the best time to buy life insurance is when you are in good health. This could be at a young age, or it could be when your needs change. But the key is to buy it before your inherited risk factors, or some unknown medical problems arise.
For a long-term need, permanent coverage is an excellent choice. Let's assume a 25 year old needs $100,000 for as long as he lives. With a level premium to age 95, the insured would have paid $7,770 over 30 years compared with $14,129 for 20-year term (the term rate goes up after 20 years). At age 75, the level premium to age 95 would have cost $12,950 in cumulative premiums compared with $149,754 in cumulative premiums with the term coverage.
Nearly one-half of all adults will be disabled for ninety days or more before they reach age sixty-five. You will want to have at least 50% of your salary covered in the event of an accident or illness.
Group Long Term Disability (LTD) coverage is generally less expensive, but it must be offered through your employer. If available, it may cover up to sixty percent of your salary to a cap. If no group LTD is available, or if your income is greater than the cap, you should consider non-cancelable individual disability income.
In addition, make sure you have a feature called "residual disability." This type of coverage pays you on a pro rata basis after you return to work, but cannot make as much money due to time or duty restrictions.
Today, individual coverage can be less expensive than group coverage. We offer coverage with Aetna, Blue Cross, Coventry, Humana, Kaiser, United Healthcare, and other quality major medical providers. For examples of our individual health plans, visit:
Health Savings Accounts are medical health plans with a high deductible. The high deductible results in a lower premium than most people have today. In addition, you can fund a medical savings account to pay the deductible and other non-reimbursed or out of pocket expenses for medical, dental and optical costs. Both the premium and the money deposited into the medical savings account are tax-deductible.
Most clients have an idea of what they want in retirement but come to us for help selecting a plan to meet their short and long-term goals. For those clients we offer a variety of different plans including 401(k), Simple IRA, SEP and Profit-Sharing.
The best time is in your 50s rather than you 60s or 70s.
Sixty percent of people who reach the age of 65 will need some form of Long Term Care during their lives.4 More than 80% of all people receiving Long Term Care assistance are not in a nursing home.5 Medicare will not pay for this type of need. Yet, the cost could easily exceed $55,000 per year.
Many of us would prefer to pass on our assets to loved ones than spend them on a nursing home or assisted living facility. Most of us want to be able to maintain our independence as long as possible and have a choice about when and where we receive care.
Invest some time today learning about Long Term Care insurance. We can review the different options and help you pick the best plan for your needs.
Our mission is to render the same high quality service to every client regardless of size and complexity. We treat every client like the long-term working relationship we hope they will become.
We are happy to meet with individual clients and group policyholders on an annual or as-needed basis.
In addition to meeting their traditional insurance needs, many of our clients rely on our expertise to explore non-traditional options for using corporate dollars to attract, retain, and reward key personnel, and guarantee business continuity while gaining maximum tax advantages.
4 "Where does the Population Live and Who
Cares for Them? LTC: Diverse, Growing Population Includes Millions of
Americans of All Ages," U.S. General Accounting Office 1/01.
Securities offered through LifeMark Securities Corp. | Member FINRA/SIPC
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