Most people buy term life insurance to provide for their family’s financial needs in the event that we die while they are still dependent on us. Permanent life insurance is also a useful wealth transfer tool when used for estate planning, as well as a modest savings vehicle. But far and away, life insurance is used by families to pay the mortgage, raise the children and put them through college if we die young.
Generally the first step in the life insurance buying process is to find an agent who you can trust and work comfortably with. The agent will help you to determine how much life insurance you should carry, what type(s), and from which company.
Read the complete article...
Tuesday, 2 November 2010
Thursday, 21 October 2010
How to Choose a Life Insurance Agent or Financial Advisor
by Richard F. O’Boyle, Jr., MBA, LUTCF
The process of working with a life insurance agent or financial advisor should not be stressful, although frequently it is. I have spent many hours with nervous couples who were so anxious about being “sold” something they didn’t really need or understand that they couldn’t focus on the constructive task before them. This is largely because insurance agents and financial advisors have the reputation of being commission-hungry sharks.
When you entrust the management of your retirement nest egg or your family’s life insurance safety net to a professional, you should walk away with a peace of mind that you are putting your finances on the right track. A good agent is not only knowledgeable about the technical aspects of planning, but also can “consult” with you to learn exactly who you are and what you need.
Read the complete article...
The process of working with a life insurance agent or financial advisor should not be stressful, although frequently it is. I have spent many hours with nervous couples who were so anxious about being “sold” something they didn’t really need or understand that they couldn’t focus on the constructive task before them. This is largely because insurance agents and financial advisors have the reputation of being commission-hungry sharks.
When you entrust the management of your retirement nest egg or your family’s life insurance safety net to a professional, you should walk away with a peace of mind that you are putting your finances on the right track. A good agent is not only knowledgeable about the technical aspects of planning, but also can “consult” with you to learn exactly who you are and what you need.
Read the complete article...
Tuesday, 13 January 2009
Understanding Individual Long Term Care Insurance
Author: Rick Lavis, CLTC, LTCP
The cost of long-term care is staggering. For example, a year in a nursing
home now averages $76,000 nationally and can exceed $110,000 in some areas.
Home health care can cost as much or more than the cost of a nursing home. In fact home health care expenses can run $170-200 per day or more for a single shift.
What is Long-Term Care?
Long-term care is the kind of care needed by persons requiring assistance or supervision with the everyday activities of daily living due to physical or
cognitive impairments or for persons needing medically necessary care for
an acute or chronic condition. Care can be provided at home, an adult day
care center, an assisted living facility or nursing home. More than 85% of
care today is received outside of a nursing home setting.
The cost of long-term care is staggering. For example, a year in a nursing
home now averages $76,000 nationally and can exceed $110,000 in some areas.
Home health care can cost as much or more than the cost of a nursing home. In fact home health care expenses can run $170-200 per day or more for a single shift.
What is Long-Term Care?
Long-term care is the kind of care needed by persons requiring assistance or supervision with the everyday activities of daily living due to physical or
cognitive impairments or for persons needing medically necessary care for
an acute or chronic condition. Care can be provided at home, an adult day
care center, an assisted living facility or nursing home. More than 85% of
care today is received outside of a nursing home setting.
For more information:
http://www.selectquote.com/images/Long_Term_Care.pdf
Monday, 12 January 2009
CHALLENGES AT RETIREMENT
One Man’s Plan
Life consists of two major events with a lot of stuff in between. You’re born. Stuff happens. You die.
Stuff that happens in the early years seems pretty important at the time. But, at the other end of the journey it’s amazing how few specifics you remember. It’s also absolutely mind boggling how fast you get there. Here I am at age 73, much closer to the second major event than the first and wondering how it could have zipped by like it did. When I was a youngster, 73 was ancient! I didn’t know many people who were that old. But then I saw my mother live to age 91 and her mother was almost 100 when she finally faded away.
My mother’s death brought a sense of reality to me as I became the oldest member of my family and realized that the second main event of life comes to all of us at some time. We just don’t know when. And that’s what makes planning for these years such a challenge. How long will it be and what extraordinary expenses might befall us during this time?
I have been very lucky, blessed with good health, a reasonably agile mind, the ability to see the big picture and a solid work ethic. But good luck doesn’t always pan out and is no replacement for planning. It is never too soon to establish a plan for your later years. Trust me; they’ll be here before you know it.
So, what are the most important elements to a plan? What do I think about during my eighth decade on this journey? I think about the importance of my wife and I keeping our good health. I think about trying to spend every day I have doing things that make me and my family happy. I also think about money. Will I have enough to keep doing all the fun things we want to do for as long as we are able to do them? What effect will a major economic shake up—as we are now experiencing—have upon our cash flow? I think about never wanting to be a burden to my wife or kids and how I want to have something left over for my family and loved ones after my wife and I are both gone. I wonder what resources I will have—health, financial and mental—with which to cope.
The health issue is most important. There are no assurances, but being able to afford the best in medical care is essential. So, my wife and I both have Medicare, parts A and B and a Medicare supplement (plan F) that covers all deductibles and copayments as well as a prescription plan. I see my doctor more now than I ever did when I was working full time and my coverage is all inclusive. At this age, preventative care becomes all important. It’s no wonder Medicare funding is in such big trouble. We also maintain a travel accident and health policy since we do travel a great deal to other countries.
When I retired from my 45 years in the insurance business in 2004 I also decided to give myself a leg up by adding a personal trainer to my agenda. I never seemed to find the time when I was consumed by the office five plus days per week, but now my cardiovascular and muscle toning sessions twice weekly are just enough to keep me feeling good and good about myself. In fact, I felt so good about myself that I came out of retirement in 2008 to join my good friend Charan Singh at SelectQuote.
Still, there is nothing to assure that my wife or I will not suffer a debilitating illness requiring extended care that is not covered by these health policies. Dementia and Alzheimer’s come to mind as the greatest demons we may have to face. Medicare doesn’t touch the expenses associated with home care or nursing homes and qualifying for Medicaid is something I would never want to face.
The thing is, the person with the affliction does not suffer nearly as much as the spouse and other family members. It is not unusual for expenses to run into the hundreds of thousands of dollars. And this is where the health and financial factors cross paths. That’s why, when I was age 62, I purchased a Long Term Care Insurance Policy that became fully paid-up in 10 years. I paid for it during my prime working years and now I never need to be concerned about personal financial devastation or family chaos that accompany these inflictions. I can’t tell you what peace of mind I have knowing that I have a policy whose benefits compound annually by 5% and that I will never have to pay another dime of premium.
My financial plan will not be derailed by the expenses of long term care. I saw my father-in-law end up having to spend everything he had worked for, first for home care and finally in a nursing home. Toward the end he seemed oblivious to his plight, but his wife’s death a year before was preceded by a tormented time worrying about how to get her husband the best care and where the money would come from to pay for it. He had been a great provider during his working years, but he just failed to plan. That will not be my legacy.
At my age, income becomes much more important than net worth when measuring financial resources. For this reason, my stock portfolio is diversified and seeks dividend yield as opposed to growth and an immediate annuity is something that I will be adding within the next year. At my age 74 and my wife’s age 70 an immediate annuity can guarantee us an income equal to approximately 8% of the premium until the second of us dies. Approximately 65% of each payment we receive will be tax free until we recover our cost basis. We will only use a portion of our assets to purchase this annuity since we cannot access the principle once the income stream starts. And, if we die in the early years our heirs might have done better if we had gone into a more traditional investment. But it is a great element for our total portfolio, adding a base guaranteed income that we cannot outlive
Finally, to satisfy my desire to leave something for our kids and loved ones when the second of us dies, my wife and I purchased a Second-to-die Life insurance policy eleven years ago. This type of policy is traditionally used to provide for estate liquidity to pay for taxes imposed at the death of the second spouse. Will it be needed for that purpose? Who knows? The federal estate tax has been reducing annually and is scheduled to be non-existent in the year 2010, but then return to its previous 55% schedule in the year 2011. It is likely that congress will make some adjustments to this approach before the end of 2010. The exclusion amount will probably be increased and the percent taxed decreased.
But, whatever happens will not change our commitment to maintain this policy in force. The Internal Rate of Return on the death benefit is excellent, regardless of when the second death occurs and it fits in with our tongue-in-cheek “Estate Plan” to spend the very last dime of every liquid asset we have on the exact date of the second of us to die. We will have lived to the fullest and still have left a legacy of parents who loved their kids and cared for those left behind.
With health insurance to cover all possible long term care needs; an immediate annuity and conservative, income producing investments and a Second-to-die life insurance policy, I feel great about my years ahead and how I will be remembered when the last major event takes place.
Michael M. Flynn
Director of Special Markets
SelectQuote
If you would like to discuss your plans for retirement with the author, he may be contacted at: Mflynn@selectquote.com, or by calling him at 1-888-244-2173.
Stuff that happens in the early years seems pretty important at the time. But, at the other end of the journey it’s amazing how few specifics you remember. It’s also absolutely mind boggling how fast you get there. Here I am at age 73, much closer to the second major event than the first and wondering how it could have zipped by like it did. When I was a youngster, 73 was ancient! I didn’t know many people who were that old. But then I saw my mother live to age 91 and her mother was almost 100 when she finally faded away.
My mother’s death brought a sense of reality to me as I became the oldest member of my family and realized that the second main event of life comes to all of us at some time. We just don’t know when. And that’s what makes planning for these years such a challenge. How long will it be and what extraordinary expenses might befall us during this time?
I have been very lucky, blessed with good health, a reasonably agile mind, the ability to see the big picture and a solid work ethic. But good luck doesn’t always pan out and is no replacement for planning. It is never too soon to establish a plan for your later years. Trust me; they’ll be here before you know it.
So, what are the most important elements to a plan? What do I think about during my eighth decade on this journey? I think about the importance of my wife and I keeping our good health. I think about trying to spend every day I have doing things that make me and my family happy. I also think about money. Will I have enough to keep doing all the fun things we want to do for as long as we are able to do them? What effect will a major economic shake up—as we are now experiencing—have upon our cash flow? I think about never wanting to be a burden to my wife or kids and how I want to have something left over for my family and loved ones after my wife and I are both gone. I wonder what resources I will have—health, financial and mental—with which to cope.
The health issue is most important. There are no assurances, but being able to afford the best in medical care is essential. So, my wife and I both have Medicare, parts A and B and a Medicare supplement (plan F) that covers all deductibles and copayments as well as a prescription plan. I see my doctor more now than I ever did when I was working full time and my coverage is all inclusive. At this age, preventative care becomes all important. It’s no wonder Medicare funding is in such big trouble. We also maintain a travel accident and health policy since we do travel a great deal to other countries.
When I retired from my 45 years in the insurance business in 2004 I also decided to give myself a leg up by adding a personal trainer to my agenda. I never seemed to find the time when I was consumed by the office five plus days per week, but now my cardiovascular and muscle toning sessions twice weekly are just enough to keep me feeling good and good about myself. In fact, I felt so good about myself that I came out of retirement in 2008 to join my good friend Charan Singh at SelectQuote.
Still, there is nothing to assure that my wife or I will not suffer a debilitating illness requiring extended care that is not covered by these health policies. Dementia and Alzheimer’s come to mind as the greatest demons we may have to face. Medicare doesn’t touch the expenses associated with home care or nursing homes and qualifying for Medicaid is something I would never want to face.
The thing is, the person with the affliction does not suffer nearly as much as the spouse and other family members. It is not unusual for expenses to run into the hundreds of thousands of dollars. And this is where the health and financial factors cross paths. That’s why, when I was age 62, I purchased a Long Term Care Insurance Policy that became fully paid-up in 10 years. I paid for it during my prime working years and now I never need to be concerned about personal financial devastation or family chaos that accompany these inflictions. I can’t tell you what peace of mind I have knowing that I have a policy whose benefits compound annually by 5% and that I will never have to pay another dime of premium.
My financial plan will not be derailed by the expenses of long term care. I saw my father-in-law end up having to spend everything he had worked for, first for home care and finally in a nursing home. Toward the end he seemed oblivious to his plight, but his wife’s death a year before was preceded by a tormented time worrying about how to get her husband the best care and where the money would come from to pay for it. He had been a great provider during his working years, but he just failed to plan. That will not be my legacy.
At my age, income becomes much more important than net worth when measuring financial resources. For this reason, my stock portfolio is diversified and seeks dividend yield as opposed to growth and an immediate annuity is something that I will be adding within the next year. At my age 74 and my wife’s age 70 an immediate annuity can guarantee us an income equal to approximately 8% of the premium until the second of us dies. Approximately 65% of each payment we receive will be tax free until we recover our cost basis. We will only use a portion of our assets to purchase this annuity since we cannot access the principle once the income stream starts. And, if we die in the early years our heirs might have done better if we had gone into a more traditional investment. But it is a great element for our total portfolio, adding a base guaranteed income that we cannot outlive
Finally, to satisfy my desire to leave something for our kids and loved ones when the second of us dies, my wife and I purchased a Second-to-die Life insurance policy eleven years ago. This type of policy is traditionally used to provide for estate liquidity to pay for taxes imposed at the death of the second spouse. Will it be needed for that purpose? Who knows? The federal estate tax has been reducing annually and is scheduled to be non-existent in the year 2010, but then return to its previous 55% schedule in the year 2011. It is likely that congress will make some adjustments to this approach before the end of 2010. The exclusion amount will probably be increased and the percent taxed decreased.
But, whatever happens will not change our commitment to maintain this policy in force. The Internal Rate of Return on the death benefit is excellent, regardless of when the second death occurs and it fits in with our tongue-in-cheek “Estate Plan” to spend the very last dime of every liquid asset we have on the exact date of the second of us to die. We will have lived to the fullest and still have left a legacy of parents who loved their kids and cared for those left behind.
With health insurance to cover all possible long term care needs; an immediate annuity and conservative, income producing investments and a Second-to-die life insurance policy, I feel great about my years ahead and how I will be remembered when the last major event takes place.
Michael M. Flynn
Director of Special Markets
SelectQuote
If you would like to discuss your plans for retirement with the author, he may be contacted at: Mflynn@selectquote.com, or by calling him at 1-888-244-2173.
Friday, 11 July 2008
Term Life Policy Issued in 4 Days — No Physical!
I’m Ed Shapiro, a SelectQuote licensed agent. On Monday, June 16, 2008, a young man contacted me. Another company had declined him for Term Life Insurance because of old driving records. He was anxious to get a policy.
SelectQuote represents a number of different Life Insurance companies that specialize in people with different risks. So I was able to recommend a company I believed would insure the gentleman. An added benefit was this company offered a “Rapid Issue” policy.
On Tuesday, June 17th the young man applied online for a policy. A representative of the Insurance company I had recommended contacted him that afternoon to confirm the information on the application.
On Friday, June 20th at 3:02 pm he was approved at the rate I had quoted him. He was greatly relieved.
One more thing: In addition to the incredibly fast service, the applicant did not have to take a physical exam!
The secret to saving time and money when buying Life Insurance is simple. It’s making sure you choose the right company for you. And that’s the essence of what we do at SelectQuote.
Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone
SelectQuote represents a number of different Life Insurance companies that specialize in people with different risks. So I was able to recommend a company I believed would insure the gentleman. An added benefit was this company offered a “Rapid Issue” policy.
On Tuesday, June 17th the young man applied online for a policy. A representative of the Insurance company I had recommended contacted him that afternoon to confirm the information on the application.
On Friday, June 20th at 3:02 pm he was approved at the rate I had quoted him. He was greatly relieved.
One more thing: In addition to the incredibly fast service, the applicant did not have to take a physical exam!
The secret to saving time and money when buying Life Insurance is simple. It’s making sure you choose the right company for you. And that’s the essence of what we do at SelectQuote.
Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone
Wednesday, 19 March 2008
How to Extend Term Life Insurance even if you become uninsurable.
I’m Ed Shapiro, a SelectQuote licensed agent. A client, 74 years old, had a Term Life Insurance policy whose term was about to end. Over the years since he bought his policy, he had developed hepatitis and possible cancer.
Knowing he had become medically uninsurable, he asked me if there was any way he could still get Life Insurance.
I was delighted to explain that almost all of the Term Life policies SelectQuote offers have a “conversion and automatically renewable feature” that allows the policy holder to extend coverage — regardless of his or her health.
Our client was extremely relieved he could still provide protection for his family.
I received a call from the client’s wife. She told me that just three months after obtaining his new conversion policy, her husband died. She wanted to express how grateful she was that we were able to extend her husband’s Life Insurance.
Her settlement check arrived just two weeks after she advised us of her loss. And the money was invaluable in paying mortuary costs and setting up a Trust Fund for her.
Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone
Knowing he had become medically uninsurable, he asked me if there was any way he could still get Life Insurance.
I was delighted to explain that almost all of the Term Life policies SelectQuote offers have a “conversion and automatically renewable feature” that allows the policy holder to extend coverage — regardless of his or her health.
Our client was extremely relieved he could still provide protection for his family.
I received a call from the client’s wife. She told me that just three months after obtaining his new conversion policy, her husband died. She wanted to express how grateful she was that we were able to extend her husband’s Life Insurance.
Her settlement check arrived just two weeks after she advised us of her loss. And the money was invaluable in paying mortuary costs and setting up a Trust Fund for her.
Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone
Friday, 15 February 2008
Agent gets Term Life Application approved in 4 days for Iraq bound Soldier.
I’m Trudy Lum, a SelectQuote licensed agent. A soldier recently called me and asked if there was any way we could get him through the application process and approved for a Term Life Insurance policy before he was to be deployed to Iraq in two weeks.
I knew most Life Insurance companies would be reluctant to provide coverage for a soldier about to be stationed in Iraq for a year or more.
But through my extensive experience dealing with the underwriters at the Term Life Insurance companies that SelectQuote represents, I thought one company might write the policy — and at a competitive price. However, the short time frame could make it impossible.
I contacted the Life Insurance underwriter immediately and got an OK to streamline the process.
I started the application on January 17, 2008 and ordered the medical exam for January 21, 2008. The application and exam were completed on the 21st and forwarded to the Life Insurance Company.
On January 21st, the soldier’s application for a $600,000 30 year policy, best rate class, was approved as applied! The next day he received it and it went inforce.
While this is a very unique circumstance and might not happen again, it indicates the compassion SelectQuote and a very special Life Insurance company have to “go to bat” for our clients.
Trudy Lum
Account Manager
1-800-670-1468 direct phone
I knew most Life Insurance companies would be reluctant to provide coverage for a soldier about to be stationed in Iraq for a year or more.
But through my extensive experience dealing with the underwriters at the Term Life Insurance companies that SelectQuote represents, I thought one company might write the policy — and at a competitive price. However, the short time frame could make it impossible.
I contacted the Life Insurance underwriter immediately and got an OK to streamline the process.
I started the application on January 17, 2008 and ordered the medical exam for January 21, 2008. The application and exam were completed on the 21st and forwarded to the Life Insurance Company.
On January 21st, the soldier’s application for a $600,000 30 year policy, best rate class, was approved as applied! The next day he received it and it went inforce.
While this is a very unique circumstance and might not happen again, it indicates the compassion SelectQuote and a very special Life Insurance company have to “go to bat” for our clients.
Trudy Lum
Account Manager
1-800-670-1468 direct phone
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