Life Insurance

Life Insurance under a magnifying glass

How I Work With Clients on Life and Long Term Care Insurance

By: Benny Smith

Benny SmithMy clients work with me because they worry about how the financial risks caused by death, disability, taxes, retirement, and the costs of long term care will affect their families, business, investments, and other assets. We complete a comprehensive needs analysis with each client to determine his or her financial objectives and how we can create a program to help protect and achieve those goals. Some people with whom we speak are on track but many have gaps, often because they have not regularly reviewed their situations. For those who need assistance, we help them create a strategy using life insurance, disability insurance, long term care insurance, annuities, and other financial products. Then we make sure to conduct annual reviews with our clients to ensure that their insurance and savings strategies are up to date, particularly because people have often gone through life or business changes since our last meeting. For those who have benefits through their employer, we review and explain those benefits to see if they are adequate, especially because they are typically neither guaranteed nor portable if you change jobs.

Let me mention three important uses of insurance .Your most important asset is not your car, or your properties, or your investments. It’s your ability to earn an income. If you’re too sick or hurt to work, will you be able to pay your mortgage or rent? Will you be able to continue contributing to a retirement plan? How long will your savings last? Statistically, one in four people will become disabled for at least 90 days during their working lifetime. And the average length of disability is almost three years. This is why we place a high emphasis on the importance of disability insurance, if you can qualify for it

Second, while people are living longer due to advancements in medical technology, they aren’t necessarily doing so in perfect health. Most of us know at least one person who has needed long term care assistance, whether in their own home or in a facility. Among married couples aged 65, there is a 50% chance that at least one spouse will need long term care at some point during their lives.. The emotional, physical, mental, and financial toll that needing long term care can have on a family is enormous. Long term care insurance offers a way to reduce those risks for your loved ones. It is clearly “peace of mind” insurance.

Finally, it can be difficult to quantify the pain of the death of a loved one or business partner. But life insurance not only allows people to reduce the financial burden of death, it allows individuals to protect their dreams for their families even if they are no longer around to physically watch them. Since we buy life insurance to protect against the unexpected, we believe it is important that our clients understand the best types of insurance and the most appropriate amount of protection for their particular situations. There is no single right answer for everyone because each family and business is different.

Our goal with this added service is to provide you, our clients, with one-stop complete insurance planning. We hope you will take Benny’s call and chat with him to see if he might be able to help you and those you love. Thank you.

Protect What Matters Most Life Insurance Illustration

5 Reasons To Consider Life Insurance

Guaranteed protection. If you have family or others that depend on you, life insurance is a safety net.

Pay Final Expenses. Funerals and burials can easily be tens of thousands of dollars. Without life insurance, this can pose a financial burden on those already suffering emotionally from the death of a loved one.

Pay Off Debts. A family may need the insurance to cover debts, like a mortgage, so that they would not have to sell their home in the event of a death.

Income Replacement. If a spouse passes away and their income is used to help with household expenses, the survivor would need to replace that income to maintain the lifestyle. If there are young children in the home, the surviving parent would need domestic help with caring for their children (childcare, house cleaning, cooking etc.).

Tax free benefit. Your beneficiaries receive the total amount of the policy and are not generally subjected to federal income tax.

Permanent vs Term Life Insurance

Types of Life Insurance

Permanent Life Insurance is a policy that doesn’t end until the time of death. There are different types of permanent life insurance products including, Whole Life. As long as the premiums are paid and there are no outstanding loans borrowed against the policy, this policy will cover you for the duration of your life or age 121. This type of policy can also accumulate cash value.

Term Life Insurance is a temporary policy that protects the insured for a certain period or term. Term insurance is typically purchased in large amounts for a smaller premium and designed to protect for short periods of time. An example of a term policy would be used for mortgage protection: a policy to help pay off the mortgage in the event of a spouse’s death.

Myths About Life Insurance

My Work Plan is Enough. Most group life insurance policies with employers have an actively working clause and some are as low as 30 days. In order for the group life insurance to pay out to your beneficiary, you would have had to work in the 30 days leading up to your death. While this is likely the case for an accident, an illness could likely fall out of the “actively working clause”.

It Costs Too Much. A study found that the majority of people overestimate the cost of life insurance by up to three times. There are affordable options to explore.

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