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Consider this: 29% of 25 year olds working today will die prior to age 65. The average cost for health care over 20 years for a couple age 65 will be over $200,000.*
Owning the right amount of insurance and the right type of insurance is the most important thing you can do for yourself and your family. Do you want to be a burden on your family? Would it bother you to watch everything you worked so hard to accumulate disappear due to lack of planning?
The reality is 63% of those living beyond age 65 will be dependent on social security, friends, relatives, or charity.* The majority of Americans fail to realize the risks of not being adequately insured. The lack of financial planning today, including a thorough evaluation of your insurance program is one of the greatest risks facing you. What steps have you taken to protect yourself and your family?
Improved health care is extending life expectancy, but also extending the time individuals may require medical assistance and long term care. Your need for insurance protection changes during your life phases but never goes away.
Ask your RDA Advisor to review your current insurance program and analyze how effective it is today and how it will perform in the future. Your advisor can offer objective recommendations and independent solutions for your specific needs.
Don’t leave these important decisions to chance! Pull all your important documents together today and schedule a review with your advisor. Your family will thank you and you will sleep better.
*sources: 2014 Gallup Poll, US Census Bureau Bankrate Saperston Companies Research Date 7-13-14
Universal life is a type of permanent insurance policy that combines term insurance with a money market-type investment that pays a market rate of returns. Universal life insurance provides flexibility because it has a cash component. You could actually stop making premium payments temporarily as long as the cash value can cover the cost of the insurance. Usually this type of policy allows you to increase or decrease the death benefit over time. You can also borrow against the policy in the form of a loan.
An indexed universal life insurance policy is a lot like universal life insurance, however, it does have a couple of differences not found in traditional universal life policies. An indexed universal life policy gives the policy holder the opportunity to allocate the cash value component to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100.
Whole life policies combine a death benefit with a cash value component. In most cases in a whole life policy, the premium and death benefit are fixed and part of your premium goes toward building cash value from investments made by the insurance company. Also, you can borrow against the policy in the form of a loan.
Term Life Insurance is basic coverage that generally does not build life insurance cash value. Consumers typically buy term life insurance to provide death benefit protection for a specific period of time, whether this is 10, 20 or even 30 years. Your premium and death benefit remains the same for the entire length of the term.
A fixed annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Unlike a variable annuity where interest earned inside the contract is variable based off of the sub-account’s performance, a fixed annuity is guaranteed to pay the holder an agreed upon interest rate which is guaranteed against the general account of the issuer. Taxes are deferred until either annuitization or liquidation on the contract.
For information on Variable Annuities please contact your Financial Advisor.
*Offered through United Planners Financial Services Member FINRA/SIPC
An indexed annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Indexed annuities earn interest based off of the issuer’s ability to gain a return in the open market by investing in major indexes such as the S&P 500, the Dow Jones Industrial Average, or the Barclay’s aggregate bond index. The client’s account is credited based on a formula correlated to the performance of the index specified in the contract. Taxes are deferred until either annuitization or liquidation on the contract.
Long term disability insurance is a type of policy that protects a person from loss of income in the event that he or she is unable to work due to illness, injury or accident for a long period of time. Generally, the insurance company will insure a loss up to 60% of your income.
This type of policy will help to pay expenses not usually covered by Medicare, like deductibles and copayments.
Long-term care is the type of assistance people need on a daily basis. It includes eating, bathing, dressing, toileting and transferring. Long-term care needs typically accompany the normal aging process, but can arise due to an injury or illness such as multiple sclerosis, stroke, rheumatoid arthritis, or due to a cognitive impairment such as Alzheimer’s disease.