Life Insurance
While nobody likes to think about life insurance, it is important for your loves ones who depend on your income. When deciding a face amount, consider how much you would need for final expenses, for debt obligations, for college expenses, and for your family to maintain a certain standard of living.
Life insurance can be categorized into two types — permanent insurance and term insurance
| Benefit | Permanent Insurance | Term Insurance |
|---|---|---|
| Death Benefit | Available for Life | Available for a specified period of time. |
| Tax Deferral | Upon death of insured, death benefit generally passes federal income tax-free¹ to policy’s beneficiary | Upon death of insured, death benefit generally passes federal income tax-free¹ to policy’s beneficiary |
| Premiums | Typically, premiums are more expensive than term, need to keep policy long enough or could be more costly (due to surrender charge) | Lower premiums allow you to purchase higher levels of coverage at a younger age, when death benefit need is greatest |
| Cash Value | Accumulated cash value can be accessed through tax-advantaged loans and withdrawals | No cash value |
Disability Insurance
Disability insurance pays an insured person income when that person is unable to work because of an accident or illness.
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):
1. 1. Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
2. 2. Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability policies have two different protection features that are important to understand.
1. 1. Noncancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
2. 2. Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
Long Term Care Insurance
Long Term Care insurance provides the necessary funds for an insured who must seek outside assistance with the activities of daily living because of an injury or illness. Skilled nursing care, home care, and rehabilititaion can all be covered by our comprehensive plans. Call or email us for a quote.
Who Pays for Long Term Care (LTC)?
Many people are under the impression that Medicare, Medicaid or their health insurance will pay their Long Term Care costs.
- Medicare has eligibility requirements for skilled nursing care only and is for a limited time period.
- Medicaid is a welfare program. It will NOT cover long term health care costs for the average American.
- Health insurance and medical supplements DO NOT cover nursing home care.
- Individuals and families through their savings, assets, and cash pay most of the Long Term Care costs.
