Life Insurance & Personal Protection Strategies
Life Insurance Protection
Life Insurance is more than a strategy. It is a promise that you will always take care of your loved ones, even when you are no longer here.
There are different types of personal life insurance just as there are different needs. You may want to provide protection for your spouse, your children, and other persons who are dependent on you, or you may want to protect a purpose such as an education need, a mortgage, a personal or business debt, or to provide a liquid source of payment for estate taxes. Although many people start out with term insurance which provides protection for a limited period of years, I have always found that most clients will have a need for permanent insurance after their term insurance eventually expires.
Personal Disability Insurance
One of the most important coverages to consider is personal disability insurance. Although life insurance coverage is more well known, many people do not realize that the result of losing one’s ability to earn a living due to a personal disability can have far reaching effects. Without your ability to earn a living, you will be hard pressed to cover the costs of everything else in your life. It is important to consider having a disability insurance policy that protects your income should you become disabled due to an accident, injury, or chronic illness.
Long Term Care Insurance
Recent Statistics from the U.S. Department of Health and Human Services report that about 52% of Americans turning 65 years of age will require some type of Long-Term Care Services in their remaining years. Long Term Care Services generally refer to Custodial, Intermediate, and Skilled Nursing Care Services that are administered in a home setting or at various facilities which may include assisted living facilities, rehabilitation facilities, as well as nursing homes. Although most people think of health care services as being medical, the majority of Long-Term Care Services are “Custodial” in nature..
Annuities
Accumulating sufficient assets for retirement has become a daunting task. Pension plans and social security funding are often inadequate sources, and the distributions necessary to secure a comfortable retirement often fall short of what is needed. Annuities are versatile financial products that can be designed to both accumulate and/or distribute monies for the self-funding of your retirement needs. Depending on your goals, annuities can be designed for the accumulation of funds on a tax deferred basis, and/or the systematic distribution of funds to last for your lifetime or for a custom designed, fixed period of years. When lifetime distribution has been selected, no other product can guarantee that the owner will receive a continuous flow of income for as long as he or she lives. Options may allow for the inclusion of additional persons for joint monetary distribution for lifetime or fixed time periods, with additional features that may include the selection of beneficiaries should one pre-decease the completion of an annuity’s distribution plan. Purchasing an annuity can offer the peace of mind that a fixed income is waiting for you so that you can live life while spending your money each year, while the insurance company takes on the longevity risk of you potentially outliving your income.
