Life Insurance

Develop Your Plan

When planning your retirement, long term care insurance is often recommended to cover the need for custodial care in a facility. Custodial care, which is not typically covered by primary healthcare insurance, is the help you may require for non-medical needs like dressing yourself, bathing, preparing meals and eating.

Since the premium for basic long term care insurance is based on your age and health history, it can be costly for those who are older and suffer from chronic health issues.

Today, life insurance carriers offer other, highly flexible products that fulfill the need for long term care while providing other advantages.

Insurance products that provide access to funds for long term care without paying additional monthly premiums.
Built-in riders that enable you to withdraw a portion of the death benefit to fund long term care.
The ability to earn interest on a lump sum purchase of certain insurance products to grow the death benefit with the flexibility to use funds for long term care when the need arises.
Or, if you need to keep all of your premium liquid, there are products and riders that can address your specific situation.

Common Questions About Life Insurance

Are these insurance products safe?

All of our insurance products have been developed by life insurance carriers with impeccable reputations. Add to this, some products are regulated by state law while others are regulated by the SEC and FINRA. In terms of the safety of insurance products that provide a market investment opportunity, there are different types that range from conservative to a more aggressive investment strategy. We can help you determine your risk tolerance and choose the best product for your goals.

How are these strategies typically used?

The primary advantage of any life insurance product is the death benefit paid to your beneficiary. However, products that can build cash value, provide the flexibility of access to funds, combined with certain tax advantages, can be a strategic component of your retirement plan.

We can help you develop a strategy for using life insurance products for a range of financial needs including:

Covering the cost of college tuitionwithout disqualifying your children or grandchildren from student aid.
Unexpected expensesin the event of an emergency.
Providing another stream of retirement income in addition to growth potential.

Plus ways to utilize life insurance products to protect your business

What if I never need long term care?

Although it’s not pleasant to think about needing assistance with basic day-to-day activities when you’re older, statistics show a majority of Americans will need long term care at some point in their lifetime.

According to The Administration for Community Living (ACL.gov), an operating division of the U.S. Department of Health and Human Services (HHS), statistics show, on average:

Someone turning age 65 today has a near 70% chance of needing some type of long-term care supports in their later years.

Women need long term care longer (3.7 years) than men (2.2 years).
One-third of today’s 65 year-olds may never need long-term care, but 20% may need it for longer than 5 years.

Without insurance, the out-of-pocket cost of non-medical, long term custodial care in a facility can cost as much as $10,000 per month depending where you live. We can provide you with information on the various types of life insurance products available for covering long term care services and support.

Can life insurance protect my estate?

Life insurance enables you to pass on a legacy that’s exempt from taxes. Unlike other assets that are subject to estate taxes upon your death, the life insurance proceeds your beneficiary receives are always tax-free. Add to this, life insurance is one of the easiest ways to transfer wealth to the next generation and avoid probate court. In fact, life insurance can also be held inside a variety of trusts that offer protection from creditors. Talk with us about the innovative ways various life insurance products can be utilized to build your legacy, and protect your loved ones, when you pass on.

How can life insurance products benefit my business?

The flexibility of life insurance makes it an excellent tool protecting your business from loss.

Key Person Insurance is a product that a business can purchase on the life of an owner, top executives, and other key employees, who are considered critical to the successful operation of the company. The company is the beneficiary and responsible for paying the premiums. This type of insurance helps businesses recoup financial loss due to the death of an owner or key employees.

Another issue that may arise is when a business partner dies unexpectedly and their portion of the company is owed to their beneficiaries. Life insurance can provide the funds required to buy out their interest in the company without having to liquidate company assets.

Life insurance can also be used for executive bonuses and deferred compensation. Known as a 162 Plan, it’s an excellent way to attract and retain top quality executives. The executive owns the rights to the policy and can name their own beneficiary. As an employer, a 162 plan does not require administration costs, IRS approval or government reporting. Unlike 401(k) plans that must be made available to all employees, the business owner can choose the employee they want to reward with a 162 plan.

Understanding Guaranteed & Non-Guaranteed Retirement Income

Survey after survey reveals the top concern for Americans is running out of money in their golden years. That’s why it’s wise to work with a qualified advisor who can analyze all of your assets and help you develop a strategic plan that provides retirement income you can count on for the rest of your life.

Non-Guaranteed Income

Certificate of Deposits(CDs) can generate returns for retirement however, when you consider how interest rates often fluctuate, income from a CD is not guaranteed.
Target Dated Mutual Fundsdo not offer a guarantee which means your principal could be at risk in the event of stock market volatility.
Dividend Paying Stocksoffer no guarantee because dividends are directly related to a stock’s profitability which can be impacted by a downturn in the economy.

Guaranteed Income

Pensions are designed to provide retirement income if you’re lucky enough to have one. A majority of employers have replaced pensions with 401(k) plans. However, some pension plans are either underfunded or dependent on stock market performance.
Social Securityprovides you with income for life. However, this federal government benefit was never intended to be your only source of retirement income. Add to this, if you don’t fully understand the ins and outs of filing for Social Security, you may miss an opportunity to maximize your monthly benefit.
Fixed Indexed Annuitiescan provide a guaranteed stream of lifetime income while protecting your principal against a downturn in the stock market. It offers the flexibility to start receiving income at any time — as early as thirty days after purchasing a Fixed Indexed Annuity. You have the option to fund the annuity with IRA and 401(k) pre-tax funds without creating a taxable event. Or, you can use after-tax funds. And your investment will continue to grow tax-free until you start taking income.