Life Insurance is the basis for Financial Planning and Estate Planning. It creates an instant estate upon the death of the policy owner. While a lot of people typically put off considering purchasing life insurance, why??? Are you afraid to talk about death? Sorry we are all going to die sooner or later, hopefully later than sooner! Do we want our spouse and our children to keep living in the same lifestyle they are used to …. ? Well do you ??
Life insurance can cover a multitude of sins, typically it is chosen based on the needs and goals of the owner. It is a contract with an insurance company, in exchange for premium payments, the insurance company provides a lump sum payment to your beneficiaries upon the insured’s death, and it passes tax free to your beneficiaries, but is included in your estate. Life insurance premiums are based on age and health, the younger you are and healthier the less expensive the premium to own the policy. Our firm can insure almost any age and health conditions including hiv patients, premium cost will vary with each individual case. I do not look at life insurance as an investment, in my opinion it is protection for your family period! Insurance is insurance , investments are investments the two are not intertwined. Ok I said my peace, let’s move on There are three basic types of life insurance and about a million variations of them.
Term Life Insurance
Term Life is generally the least expensive, it is designed to provide protection for a specified period of time 10, 20 or even 30 years. The premium stays level for the term of the policy but since it is for a specific time frame no cash value is accumulated if you live past the term you have nothing to show for it, but your alive. UNIVERSAL LIFE is a permanent type of policy, it is designed to provide lifetime coverage ,and it does build cash value, BUT is a two piece type of policy it is term life insurance and investments, the premiums are flexible which means you can lower or raise the premium amounts throughout your lifetime. The cost of premiums are higher than term insurance because of the lifetime benefit.
Whole Life Insurance
Whole Life is a permanent policy designed to provide lifetime coverage. The premium never changes, it is pure life insurance! It builds cash value, initially it is the most expensive policy but as the years go on you have the most to show for it. These are the three basic types of LIFE INSURANCE, which policy is better suited for you? We can discuss these policies in greater depth and make a decision based on your current and future needs and come up with a determination that best suits you.
If you are turning 65 years of age in the near future now is the time to discuss your Medicare options. Medicare plans change every year and so do the cost of these plans. There is a short window of time to make big decisions, and your life could literally depend on these decisions.
Here is Medicare broken down
Part A – Hospital Insurance, covers most medical necessary hospital, skilled nursing facility, home health and hospice care. It is free if you have worked and paid Social Security Taxes for 40 calendar quarters or ten years. You will pay a monthly premium if you have worked and paid taxes for less than the required 40 quarters.
Part B – Medical Insurance, covers Doctors services, preventative care, durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental health care, some home health and ambulance services, You pay a monthly premium for this coverage.
Part- C – this is not a separate benefit Part C is part of the Medicare policy that allows private health insurance companies to provide Medicare benefits. These Medicare private health plans such as HMO’S and PPO’S, are known as Medicare Advantage Plans. Medicare Advantage Plans must offer at least the same benefits as original Medicare Parts A and B but can do so with different rules, costs and coverage restrictions. You may pay a monthly premium for this coverage in addition to your Part B premium.
Part – D is outpatient Prescription Drug Insurance and is the part of Medicare that provides outpatient prescription drug coverage. It is provided only through private insurance companies that have contracts with the government. It is not provided directly by the government like Medicare is. If you want Part D you must choose Part D coverage that works with your Medicare Health Benefits.
Medicare can be confusing so let us help you navigate the waters. We have specialists to advise on the plans most suitable to your needs.
Contact Us for a free evaluation and see if your insurance needs are covered.