LIFE INSURANCE

Every life insurance company in America states, through some form of advertising, that they are the best company for your life insurance needs. They all claim to have the best products, are the oldest company, or just tell everyone how great a company they are. The truth ... Most people pay little attention and don't care about the "facts" presented in an advertisement for life insurance.

Another truth ... Most life insurance companies offer very similar products. However, their underwriting criteria and cost may vary greatly. The length of time that the life insurance need exists often determines the type of product that should be considered. The need itself may exist on several levels: Individual needs as well as business needs. And, the amount of life insurance that one needs is best determined with the help of a life insurance professional.

Today's life insurance products are very different than those offered just a few years ago - whether we're talking about term life, universal life or whole life policies. For this reason, existing life insurance policies should be reviewed every few years. No different than the periodic review of one's will or trust documents. Needs and life insurance products do change.

Life insurance choices can be confusing. The specialists at Benefit Planners Group do not represent any particular life insurance company. We represent our clients — with help, advice and assistance through the life insurance process. Service ... That's what we offer.

Give us a call. We'll supply the information for you to make an informed decision that best suits your life insurance needs.

LONG-TERM CARE INSURANCE

Long-term care is the assistance people receive when they are unable to care for themselves on a daily basis. This assistance can be in your home, in an assisted living facility, or in a nursing home.

The phrase “long-term care” is somewhat deceptive. Care can also be for a short period of time. Often, for a short time, people that have hip or knee replacement surgery require assistance with dressing, bathing, and getting out of a bed or chair. This assistance, known as custodial care, is referred to as Activities of Daily Living or ADL’s.

Skilled Care is the next level of care. It is a more advanced level of care requiring medical and nursing care.

It is important to note that custodial care is NOT provided by Medicare. Skilled care is provided. There is a co-payment and a limited number of days of care per claim.

WILL I NEED LONG-TERM CARE?

Some of us will never need long-term care but a growing number of older Americans will need long-term care services. According to the National Alliance for Care Giving and AARP, 70% of the people over the age of 65 require some long-term care services.

WHAT DOES LONG-TERM CARE COST?

National monthly averages:

• Home Care = $3,500
• Assisted Living Facility = $4,500
• Nursing Home = $7,500

*Data compiled by the American Association for Long-Term Care Insurance

WILL MY HEALTH INSURANCE PAY FOR MY LONG-TERM CARE?

No major medical insurance or supplement plan provides for long-term care. Medicare will not pay for custodial care. They will pay for skilled care services. A very limited amount for a very limited time. Medicaid will pay for care but you must spend down your assets and meet strict income criteria. You receive care in a facility chosen by the government program.

WHY SHOULD I BUY LONG-TERM CARE INSURANCE?

There are two important reasons to have long-term care insurance —preservation of assets and peace of mind.

With today’s dollars, purchasing a benefit that increases annually will greatly decrease the future cost of your long-term care. The dollars paid for your care by the insurance company are not taxable income.

Nobody knows what long-term care will cost in the future. With a well-designed long-term care insurance plan, the insurance company will pay these expenses. Leaving your assets for other purposes.

Many people, including those that can easily afford to pay for their care, purchase long-term care insurance for peace of mind. Knowing that they have a care plan that will provide the quality care they need, when they need it, without having to rely on friends or family members.

Many friends and family members are often too busy with their own work and families, or live too far away, to be of any help to someone in need of long-term care.

The guarantee of quality care, from licensed health care and home care professionals, provides peace of mind.

WHAT IS THE BEST AGE TO BUY LONG-TERM CARE INSURANCE?

Long-term care insurance premiums are based on your age and health at the time you apply for coverage.

Age 55 to 60 is the best age bracket. You are healthier at these ages than people in their 70’s. The younger you are, the lower the cost. Far less chance of being rejected for coverage by an insurance carrier.

ARE THERE DIFFERENT TYPES OF LONG-TERM CARE INSURANCE?

Yes. There's the traditional long-term care product: a specific benefit, coverage for a specific time period, and an annual premium. There are also other long-term care products that may better suit some clients' needs. Some of these products combine life insurance with a long-term care option. Other products are designed to shift assets to a product that will provide long-term care benefits IF they are ever needed.
 
It is best to have the different products explained by a Long-Term Care insurance specialist such as Benefit Planners Group.

HOW CAN I SAVE ON THE COST OF LONG-TERM CARE INSURANCE?

• Work with a Long-Term Care insurance specialist like Benefit Planners Group. They will be your best guide to a properly designed plan.
• Take advantage of couples discounts.
• Have a 90-day elimination period in plan. Period before coverage begins.
• Carefully consider the inflation protection options. The costs vary widely.
• Consider a 3-5 years benefit period. 92% of people do not need or use a benefit beyond 5 years.

WHEN I DECIDE TO BUY LONG-TERM CARE INSURANCE, HOW BEST TO PROCEED?

Seek assistance from an insurance professional or financial planner such as Benefit Planners Group who can assess your situation and specific needs.

An experienced long-term care insurance advisor will help you through the buying process and explain the various features of a policy.

It is important to choose an insurance company that has years of experience and will be there when you need them. The insurance company’s financial strength is very important. Investigate their S&P, Moody’s, and A.M. Best ratings.

Contact us today. We would be honored to work with you.

ANNUITIES

According to the Wall Street Journal, most people do not have anywhere near the amount of money needed to retire. Other publications and media outlets have pounded this news home to millions of working people over the last few years.

As we all know, retirement plans suffered large declines in value after the strong financial gains of the 1990’s. The decline, combined with a slow growth economic recovery, left most folks nearing retirement years with their traditional “safe investments” (CD’s and Government bonds) providing minimal earnings year after year. It became clear that these safe investments would not be able to make up the lost value before their retirement years begin.

The same Wall Street Journal article continues by stating that annuities may be the only available safe investment where the Baby Boomers can gain some ground back on their investment portfolios.

Articles about annuities, such as those printed by the Wall Street Journal, have fueled the public’s interest.

WHAT EXACTLY ARE ANNUITIES?

Annuities are investment products offered by insurance companies that offer some unique advantages not found in any other type of investment product.

Annuities, because they are an insurance product, allow for a beneficiary payment upon death of the owner. All other investment products are usually subject to a lengthy probate process.

For many people, one popular and very important feature unique to annuities: Guaranteed lifetime income.

Before highlighting some of the key features of annuities, we recommend that anyone interested in purchasing an annuity, should meet with an annuity specialist such as Benefit Planners Group to determine if it’s suitable for their investment portfolio.

There are two types of annuities: Fixed annuities and Variable annuities. Either can be an immediate annuity or a deferred annuity, and can be purchased from one to ten year periods.

VARIABLE ANNUITIES:

Benefit Planners Group, although licensed to sell variable annuities, doesn’t recommend them for most retirement or investment portfolios. The reason: Variable annuities are a stock market driven investment. There is potential for substantial gains in a strong growth market year and a loss of principle and any earnings in a weak market year. In other words, your annuity value participates in market gains and losses annually. Also, variable annuities have annual fees that typically total about 2.5% of the invested amount. This fee must be paid annually regardless of the fund performance. For these reasons, we do not recommend variable annuity products.

FIXED ANNUITIES:

Benefit Planners Group does recommend these annuities. They are very different from Variable annuities. Fixed annuities usually offer a fixed annual interest rate or an earnings rate based on the performance of the S & P 500 stock index. Most important to the investor: With a Fixed annuity, there can NEVER be a negative loss in annual earnings or a loss to the original investment account.

Fixed annuities are a savings account with an insurance company. Clients invested funds are backed by AAA bonds.

Important features unique to Fixed annuities:

• They are Protection products. They do not participate in market losses.
• Fixed annuities have a triple compound earning effect not available with any other investment. The initial investment, first year’s earnings, and every year thereafter, all earn at a compound rate.
• Unlike the interest earned on CD’s, and other investments that are taxed annually, annuities are not taxed annually. No taxes are due until funds are withdrawn from the annuity.
• A percentage, usually 10%, of total annuity funds can be withdrawn without fee or penalty annually.
• Unlike the annual earnings of CD’s and mutual funds, fixed annuities will not affect Social Security taxes.

Investment stability and the guarantees provided by Fixed annuities have become an important investment strategy.

NEXT STEPS...

These annuity features above are only highlights.

Before you purchase an annuity it is very important that you choose one offered by a top rated insurance company. Compare the benefits, costs, and the rates.

Similar to life insurance, we do not represent the interests of any particular insurance company regarding annuity products.

If you are approaching retirement and would like to learn more about how annuities can be part of your retirement income, please give us a call.