Category: Insurance - PFwise.com

Some Leading Mutual Life Insurers' 2021 Dividend Rates

11/24/2020

A mutual life insurer is a life insurance company that’s owned by some or all of its policyholders. A mutual may use dividends to pay part of its profits to the policyholder owners.

Mass Mutual
Mass Mutual is cutting its 2021 dividend rate slightly, to 6%, from 6.2% for this year The company says it expects to pay a total of $1.7 billion in dividends in 2021. A year ago, MassMutual said it expected to pay $1.7 billion in dividends for 2020.

Northwest Mutual
Northwest Mutual says the interest rate it uses to calculate the 2021 dividend payments will hold steady at 5%.

Ohio National
Ohio National says the interest rate it uses to calculate the dividend payments will fall to 4.7% for open block policies, from 5.2% for this year, and to 4% for closed block policies, from 4.5% for this year.

5 Annuity Options In One Map

11/23/2020

While all annuities are designed to provide income, there are different kinds to align with your accumulation goals and how much risk you’re comfortable taking.

Immediate Annuity
Carrying the lowest risk, immediate annuities convert your premium payment to a guaranteed income stream for life, or for a specific period.
Fixed Annuity
Fixed annuities offer a fixed interest rate that’s guaranteed for a certain time period. The guarantee may appeal to you if you’re willing to sacrifice the potential for higher returns when the markets rise.
Fixed Indexed Annuity
In the middle of the spectrum, fixed indexed annuities have become increasingly popular with people who have a moderate appetite for risk. You can earn interest credits based in part on the upward movement of a stock market index while enjoying protection of a zero percent floor. If the net change in the index over a given crediting period is negative, you would earn zero interest credits for that period, but never less than zero.
Registered Index-Linked Annuity
These products are designed for people with a higher risk tolerance. Registered index-linked annuities offer the potential for index credits tied to index performance while providing a measure of protection from market loss.
Variable Annuity
This type carries the highest level of risk because your money is invested directly in the market. Variable annuities offer the highest growth potential of any of the products on the annuity spectrum, but they also leave you fully exposed to market loss.

5 Criteria to Look For When Researching Permanent Life Insurance

11/22/2020

If you are looking for permanent life insurance protection, make sure to look for products that meet the following 5 criteria.

Volatility Protection – Offers protection against market volatility, through global and domestic index interest crediting strategies.
Cash Value Access & Riders – Allows you to take distributions as needed because life doesn’t always go as planned.
Tax Diversification – Helps fuel supplemental retirement income that is generally tax-free
Low Cost Structure – Its affordable and transparent cost structure is designed to help generate optimal, stable income in good years and bad years.
Non-Medical Underwriting – It’s faster and easier to acquire for policies that qualify.

5 Resources to Start Caregiving Research For Your Aging Parents

11/20/2020

1. Start by contacting the local Area Agency on Aging.
There are over 600 “Triple As” that form a national network, connecting older people and their families throughout the country with local programs and services. Created under a Federal law, the Older Americans Act, they support services such as meals on wheels, transportation, adult day care, and senior centers, all available at no or low cost. They also sponsor an information telephone line for family caregivers and can provide general guidance on home care, assisted living, respite care and other public and private services. To find the Area Agency on Aging in your community, visit their website or call 1-800-677-1116.

2. Explore eldercare benefits offered through your employer.
Many employees of large or medium-sized companies are surprised to find that their employer makes resources available to assist working caregivers with eldercare issues. Employees at these companies are likely to have access to an internal website with a wealth of caregiving information, and the option to speak with a designated eldercare coordinator who ca answer questions, provide lists of local resources and help them think through what might be needed. Though not as common, some employers offer more robust services such as in-person consultations or paid leave. Check with the human resources department to see if these benefits are available.

3. Retain a care manager.
It may be a smart move for caregivers to hire a private geriatric care manager--usually a social worker or nurse--to help families with eldercare needs. They generally start with an in-home assessment, then meet with the family and put a car plan in place. Depending on the agreement, families may want them to implement the plan and take on more responsibility. As the onsite experts, coordinators and advocates, they provide services such as monitoring care, solving problems, dealing with health insurance issues, and handling crises as they occur. To locate a care manager, contact the Aging Life Care Association (ALCA). All 2,000+ members must meet strict criteria and sign a code of ethics.

4. Visit websites for caregivers.
There are a number of websites that focus on caregiving and it’s worth taking time to look into them. Their subject matte is extensive, and ranges from information on benefits and legal documents to tips for hiring private caregivers to caring f someone with Alzheimer’s Disease and suggestions for coping with the ups and downs of being a caregiver. Some have chat rooms that function as virtual support groups so caregivers can share their experiences. Others help you locate independent caregivers, home care agencies or assisted living facilities (although caregivers should note that they may b listed because they are advertisers). AARP has a robust section on its website for caregivers. Another helpful website Is sponsored by the Family Caregiver Alliance. You can google “caregiving” to find other good websites.

5. Understand more about financing care and protecting against financial abuse.
While caregivers begin their journey mainly concerned about parents’ health and safety, they soon find out that the financial and legal aspects of caregiving need to be dealt with too. They discover that home care, assisted living and nursing home care is very expensive and they may end up being the ones who will pay for Mom or Dad’s care. In the best of all worlds, their parents planned ahead, have all their legal and financial papers in order and purchased long-term car protection. No matter what the situation, a financial professional can play a valuable role by reviewing care options and the cost implications and by providing some strategies to help stretch caregiving dollars. Since elders are often victims o financial abuse, losing their financial nest e impacts their ability to pay for care. It’s a good idea to become familiar wit ways to prevent and report scams and fraud. Google “financial elder abuse” for descriptions of the causes, types of abuse and whom to contact if necessary, or go to the National Adult Protective Services Association website.

A Case Study How to Use Money In CD To Cover Long Term Care

11/19/2020

The client
Age 75 to 85; has $150,000 from a large build up in a Non-Qualified Annuity not subject to surrender charges or money from a CD; views proceeds as lazy or emergency money.

The situation
Client is concerned about efficiently funding an extended health care or Long-Term Care (LTC) event. Has already identified assets to use but wants preservation of their capital, a reasonable rate of return and access and control over their money if they need it. The agent’s current BD doesn’t allow sale of Indexed Annuities.

A solution
To address the specific concerns of the client, a 1035 transfer to Annuity Care, base policy only, may be a possible solution.

This solution offers the client on $150,000:
• The ability to access gains tax-free for extended care or LTC events
• A 34.8% tax-free income stream for 36 months ($4,348 a month) for qualifying LTC expenses
• Can add a spouse or other insured giving both access to the full monthly benefit
• Retain access and control over the assets just like in their current annuity
• No medical underwriting or cognitive phone interview for base policy only
• Ability to add a rider doubling pool of assets or lifetime coverage (requires cognitive phone interview)

Common Problems That Life Insurance Products Are Good Solutions

11/18/2020

Long Term Care Insurance 101

11/17/2020

Long-Term Care Insurance 101

5 Ways to Save When Dealing With Health Care Issues In Retirement

11/16/2020

The 5 ways mentioned below are based on an article from Money.CNN.com -

1. Take advantage of Medicare's free preventive services

Medicare eligibility kicks in at age 65, and once you're enrolled, you get access to a host of no-cost benefits designed to help you stay on top of your health. But many seniors don't take advantage of these services, and therefore lose out on an opportunity to get ahead of health issues.

As a Medicare enrollee, you're entitled to a free wellness visit with your doctor every year, and scheduling that could help you avoid a separate bill later on. Similarly, many critical health screenings are free under Medicare, including mammograms and certain cancer screenings, diabetes testing, and depression screenings. Capitalizing on these free services is a good way to keep your health in the best possible shape, thus lowering your health care costs on a whole.

2. Address health issues before they escalate

Minor health problems can easily become major ones when they're left to fester. One of the easiest ways to save money on health care in retirement is to address medical issues before they get worse.

Imagine, for example, that you come down with a bad cough but opt to wait it out rather than go to the doctor. If that cough turns into pneumonia and you wind up hospitalized, you'll face a much larger bill than your typical copay under Medicare, all while putting your health at risk.

If you have mobility issues that make it difficult to get to a doctor, utilize Medicare's telehealth system, which gives you access to health care professionals virtually. This way, you avoid the hassle of having to physically get to a doctor's office while benefiting from legitimate medical advice.

3. Consider a Medicare Advantage plan

Part of what makes healthcare so expensive in retirement is the fact that many essential services aren't covered under traditional Medicare. Dental care, vision services, and hearing aids, for example, are just a few of the things Medicare won't pay for. But if you opt for a Medicare Advantage plan, you might save money on these and other critical services.

Medicare Advantage plans are designed to mimic the coverage offered by traditional Medicare, only they typically provide a wider range of benefits. And in some cases, you could end up paying less for Medicare Advantage than traditional Medicare, even with that improved coverage. Medicare Advantage might also save you money by limiting your out-of-pocket spending — most plans put a cap on that figure, whereas with traditional Medicare, your yearly costs are virtually limitless. And that's reason enough to look into an Advantage plan.

4. Shop around for the best prescription drug plan

If you take prescription drugs, it's crucial to find a cost-effective plan in retirement. If you're enrolled in traditional Medicare, you'll need a separate Part D plan to cover your drug costs, but not all plans are created equal. That's why you'll need to do some comparison shopping to see which plans offer the best deals based on the medications you're taking.

But don't just settle on a single Part D plan and stick with it year after year. Because plan formulas can change, it could be that a certain drug that's affordable one year doubles or triples in cost the following year. Furthermore, as your prescription needs change over time, you may come to find that a certain Part D plan saves you more money than another.

Along these lines, it pays to see what your drug coverage looks like under Medicare Advantage. Some Advantage plans include prescriptions, which means you might not only save money, but eliminate the need to deal with a separate drug plan.

5. Buy long-term care insurance

If you think the cost of doctor visits and prescriptions in retirement is astronomical, just wait until you face the prospect of long-term care. And it's likely you will. An estimated 70% of seniors 65 and over wind up needing some type of long-term care in their lifetime, and the figures are downright astonishing.

A year's stay in a nursing home, for example, will run you about $82,000, and that assumes you're bunking with a roommate. An assisted living facility, meanwhile, will set you back over $43,000 per year, on average.

If you want to save money on long-term care costs, invest in insurance when you're in your 50s or 60s. The younger you are when you apply, the more likely you are to not only get approved but snag a health-based discount on your premiums. And while you will pay for coverage year after year, those premiums could save you considerably more than what you would spend on them in the long run.

5 Reasons Consumers Will Benefit From AIG's IUL Products

11/12/2020

AIG's IUL products, QoL Max Accumulator+ and QoL Value+ Protector are designed for people who are looking for permanent life insurance protection.

1 Volatility Protection – Offers protection against market volatility, through global and domestic index interest crediting strategies. Learn more about Volatility Control in Volatile Market Conditions.

2 Cash Value Access & Riders – Allows clients to take distributions as needed because life doesn’t always go as planned.

3 Tax Diversification – Helps fuel supplemental retirement income that is generally tax-free.

4 Low Cost Structure – Its affordable and transparent cost structure is designed to help generate optimal, stable income in good years and bad years.

5 Non-Medical Underwriting – It’s faster and easier to acquire for policies that qualify.

Pension Maximization Strategy to Get More Out Of Retirement

11/11/2020

Although fewer individuals are participating in Defined Benefit Pension Plans, many individuals who participate in these plans for several years are starting to retire. The choices at retirement are limited to how the participant wants to take the income stream. The decision on how to take the income can have a dramatic impact on how much income the participant can receive.
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Married couples have a much longer life expectancy than single individuals so pension administrators must provide a much smaller benefit to cover two lives. How much less depends on ages and whether a 50% survivor benefit, 75% survivor benefit, or a 100% survivor benefit is chosen. The higher the survivorship benefit, the lower the primary benefit will be.

At retirement, pension plan participants who are married must make a decision: Choose the maximum monthly income for the life of the retiring employee or choose a substantially reduced pension that will cover the lives of the employee and spouse whether Joint and 50% benefit, Joint and 75% benefit or Joint and 100% benefit.

For married individuals, the single life option is not viable, since the death of an employee will leave the surviving spouse with nothing. Any joint option will leave both spouses with less to live on. If the employee spouse dies soon after beginning benefits, the survivor will receive a lifetime of reduced benefits. If they both live long and die a year apart, they will have wasted the sacrifice of taking less. Whichever payout option they choose, there will be nothing left to pass onto children. Pension Maximization may provide a solution that allows for higher income for both and a legacy left for loved ones.

If the retiring employee lives for a long time, there will be money from the life insurance policy to pass on to children. If the employee does not live to their life expectancy leaving a surviving spouse, the spouse will have income from the death benefit to help fund their remaining retirement and may have some money left over to pass to children. If both live a long life they will have cash value available to borrow to further fund lifestyle needs when they are older.

The cash value of the policy is available for emergencies while living. If the employee’s spouse predeceases the retiring employee, the policy can be surrendered for the cash value. If the policy is surrendered, sold, or exchanged for an immediate income annuity, the money can be put to work generating additional retirement income.

The death benefit payout is income tax-free and the death benefit is available for unforeseen debts and medical bills. The death benefit can be annuitized and/or invested to provide income for the surviving spouse. This provides principal that can be passed on to loved ones.

Conclusions

Purchasing life insurance on the retiring employee and possibly purchasing a single life immediate annuity may result in more money available during retirement. Life insurance creates a fund which, if not fully utilized, provides a legacy to loved ones after they are gone. People planning retirement should consider obtaining life insurance prior to deciding on how to take pension benefits. This will ensure that a sufficient amount of insurance is purchased to cover the need.

If when evaluating a permanent policy, you find it does not generate a large enough death benefit to cover the surviving spouse, consider combining term insurance with a permanent policy to reach the needed death benefit.

Pension Maximization provides an opportunity in the right situation to improve a retiree's retirement and in some cases allows more assets to pass to children and grandchildren.

Critical Advantage Portfolio Insurance Fills the Gap of High Out of Pocket Health Expenses

11/7/2020

With health care premiums rising and increases in treatment costs, many people are looking to fill the gap between coverage and out-of-pocket expenses. Cancer Insurance & Heart Attack/Stroke Insurance pays the policy holders a lump-sum payment upon diagnosis, providing them with some security in their time of need.

Combination of Benefits of Fixed Index Annuity Products

11/6/2020

The fixed index annuity products usually offer a powerful combination of benefits that help protect against many of today's common retirement concerns, as summarized in the chart below.

The Typical Profile of People Who Need GUL

11/5/2020

With its guaranteed lifetime death benefit, cost-effective premiums, and optional chronic illness coverage, a Guaranteed Universal Life (GUL) product is a valuable life insurance solution for the following people:

Wants straightforward coverage with no surprises
Concerned about affordability and sticking to a budget
Desires protection for potential long‑term care expenses

Chronic Hepatitis B and Life Insurance - Part B

11/3/2020

In last blogpost, we discussed what is Chronic Hep B. Now we will discuss life insurance underwriting for it.

Underwriting for Chronic Hepatitis BThe primary questions to be asked of a proposed insured that presents with this history are:

Age at diagnosis and what are the average LFT readings — especially the ALT(SGPT)?
Any diagnosis of fibrosis or cirrhosis?
Has any testing been done (i.e., biopsy, CT scan, ultrasound)?...normal results?
Have any medications been prescribed?... or any treatment w/ anti-viral drugs?
Amount and frequency of any alcohol use?
Frequency of follow up with doctor and testing results?

Underwriting decisions for chronic hepatitis B will be varied depending on the severity of the disease and how long a person has been infected. A Table 2-4 is typically what you’ll be looking at for a starting point, but Standard offers are possible with evidence of excellent control, normal liver function tests, negative biopsies, and good doctor's follow-ups.

Below is a list of questions an applicant with chronic Hep B should be prepared to answer.

Chronic Hepatitis B and Life Insurance - Part A

11/2/2020

What is Chronic Hep B?

Hepatitis B is an inflammation of the liver, due to an infection of the Hepatitis B virus (HBV). Although a common condition worldwide with more than half the population chronically infected, Hep B only has a 2% incidence of chronic infection in the United States. HBV is typically transmitted through birth, sex, or blood.

Approximately one-half of the new infections are mild and unrecognizable occurrences. The other half are more significant that will show signs of jaundice and/or elevated liver function tests and, long-term, may develop into fibrosis, cirrhosis, or cancer…and occasionally death.

Not to be confused with acute Hep B exposure — that typically isn't a real underwriting concern, once resolved — infections lasting longer than 6 months are considered chronic. To be considered for life insurance, the applicant must be recovered, in a carrier state, and/or only have a mild form of hepatitis.

In our next blogpost, we will discuss life insurance underwriting and Chronic Hep B.

The Risks of 4% Rule for Retirement Income

10/31/2020

4% withdrawals are a rule of thumb some retirees hope will make assets last. But does the rule stack up against the risks? Annuity is a good hedge for these risks.

A Good News for For AIG's Regular Term Life Customers

10/29/2020

As of 08/31/2020, Select-a-Term policies issued in the past 5 years could be eligible to convert to a permanent policy with the AAS Rider. NonInvasive underwriting will be required to determine eligibility for the AAS Rider. The maximum AAS benefit is $3 Million, and partial conversions are allowed. This rider is not available for previously converted policies and is available in all states.

A Case Study of Critical Illness Insurance Protection - Part B

10/28/2020

In last blogpost, we discussed who needs critical illness insurance protection. Now we will show a case study below.

She was happy to save about $100 a month in her health savings account (HSA), and her company contributed to her HSA each year as well. But a major illness would quickly wipe out her HSA balance and leave a real financial gap.

The numbers show how affordable it can be for Sarah and her family to close the gap if illness strikes. For $41.14 a month — less than the cost of one meal out with her husband and children — she can rest assured knowing she’ll have enough money to cover day-to-day expenses and any other unexpected costs.

Sarah also knows because she added the Return of Premium Rider, she will get some of her premiums back if she never needs her policy.

Who Needs Critical Illness Insurance Protection? Part A

10/27/2020

There are plenty of good reasons to buy a critical illness (CI) insurance. The rising cost of healthcare (and those painful high-deductible plans) are at the top of that list. But CI is also great for stay-at-home parents or part-time workers who don't log the 30 hours per week needed to qualify for disability income insurance. If you work part-time, stay at home with the kids, or just pay too much for health insurance, you could consider an affordable Critical Illness Insurance.

In next blogpost, we will show a case study of how critical illness insurance helps someone.

Guaranteed Growth Rates for Next 3 or 5 Years

10/26/2020

GuaranteeShield from American Equity

Guaranteed rate for 3 or 5 years

2.40% or 2.65% fixed rate

This is a very good product for retirees who are looking for safety and guaranteed growth in today's low rate environment.

Doubling Retirement Income For Life

10/25/2020

Many retirement portfolios continue to be impacted during these uncertain times. Here is a product from AIG that you can secure an income base that is guaranteed to double after 10 years when the rider has not been activated. And when you are ready for income, you can count on up to 5.6% withdrawals for life.

Why Single Premium Immediate Annuity Could Be a Good Solution Even With Low Rates

10/16/2020

The financial planning magazine has a great and easy to read article that properly titled "A skeptic takes a second look at Single Premium Immediate Annuities (SPIAs)".

The author went from being a skeptic of SPIA to identifying the right people for SPIAs, and analyzed the Pros and Cons of SPIA.

Pros of Single Premium Immediate Annuities:

Longevity insurance
Peace of mind
Competitive expected return
Increased safe spend rate for remainder of portfolio

Cons of Single Premium Immediate Annuities:

Inflation risk
Counterparty risk
Lack of diversification
Long term bond-like investment with historically low nominal yields

It's a great read for people who are withdrawing for their portfolios wanting some longevity insurance, as SPIAs can make sense as part of the solution.

Does an annuity fit your retirement goals? - Part B

10/14/2020

In last blogpost, we discussed traditional annuities. Now we will discuss Income Annuities.

Income Annuities
There are types of annuities that are expressly designed to provide a guaranteed income stream in retirement – income annuities. And although income annuities share some similarities with their traditional counterparts, they differ in important ways.

Income annuities are designed for the sole purpose of providing a guaranteed stream of income, either immediately or in the future.

An immediate income annuity typically is purchased with a single premium or “purchase payment” and requires that income payments begin within 12 months of the date your contract is issued. Income can be guaranteed for as long as you live or for a specific period of time. Because immediate income annuities guarantee a specific income amount, they offer very limited access to withdrawals, and only for some annuity options. Even if you choose an annuity option that allows withdrawals, it’s important to remember that withdrawing money from your contract can have a significant impact on the dollar value of future annuity payments.

An immediate income annuity may be worth considering if you are nearing or already in retirement; want the security of guaranteed, predictable income; and need that income to start right away. If you think you might need that money down the road and you have limited additional liquid assets, an immediate income annuity is probably not the best choice for you.

A deferred income annuity, on the other hand, is designed to provide guaranteed future income. A deferred income annuity generally permits multiple “purchase payments” over a period of time. On the annuity date you choose, all purchase payments are combined into a single, guaranteed income stream that will continue for as long as you live; some deferred income annuities offer period certain options as well. In this sense, a deferred income annuity can be used to generate a “pension-like” stream of future guaranteed income.

A deferred income annuity differs from a traditional deferred annuity in important ways. In general, a deferred income annuity:

Does not provide liquidity; there is no contract value or ability to make cash withdrawals, as there is with a traditional deferred annuity. The only time that distributions are made from a deferred income annuity contract is when annuity payments are made or a death benefit is paid.
Because there is no contract value or liquidity, and your guaranteed income is paid to you over your lifetime, longer-duration, higher- yielding assets can be used to support that guaranteed income. That’s why a deferred income annuity can guarantee a higher future income amount than a traditional deferred annuity at the time you make your purchase payment(s).

If you are considering a deferred income annuity, it’s essential to have a separate source of liquid assets set aside for emergencies. It’s also important to get the facts and speak with a financial professional.

So which annuity should you consider?
That depends on many factors.

For retirement purposes, an annuity can work in conjunction with the savings in your 401(k) plans or IRAs (both of which can be affected by market ups and downs). And given the way life spans are stretching, there’s also a chance you may outlive your savings.

An annuity can also work to supplement other sources of retirement income that are guaranteed, like a defined benefit pension plan or Social Security.

With any annuity, it’s important to get the facts before making your decision. Retirement is your reward for decades of hard work—and part of that work is making sure you’ll have enough money for the kind of retirement you want. If you are looking for an additional source of predictable income now or in the future or a product that is designed to help you accumulate assets on a tax-deferred basis, annuities may be an option worth exploring.

Does an annuity fit your retirement goals? - Part A

10/13/2020

Retirement income can come from a number of financial sources; some guaranteed, some not. Annuities are an option for people who want to bulk up the guaranteed income portion of their retirement portfolio.

Generally, an annuity works like this: You purchase the annuity, either in a lump sum or a series of payments. In return, the annuity will make payments to you at a future date or series of dates.

Annuities come in many different “flavors” – each of which is designed to help you achieve specific financial goals. They can work to build retirement savings, supplement other forms of retirement funding, or both.

The different varieties of annuities can also be bewildering. Depending on individual circumstances, many people turn to a financial professional to help them navigate the choices.

Traditional deferred annuities
“Traditional” deferred annuities are the kinds of annuities with which most people are familiar. They are designed to help you accumulate assets on a tax-deferred basis as you save for long-term goals like retirement. Let’s look at two basic examples of traditional deferred annuities: “fixed” and “variable”.

Deferred fixed annuities are “fixed” because they offer fixed interest rates. They are “deferred” because they require a waiting period before annuity payments can begin. During the deferral period, money in your contract is credited with a fixed rate of interest and grows at a steady pace.

Because you don’t pay current income taxes on the earnings in your contract until you withdraw it, more of your money remains available to benefit from that steady growth. Fixed deferred annuities also offer annuity income options that can provide guaranteed income for life or a certain period of time (like 10 or 20 years). This type of annuity typically includes a withdrawal provision that allows you to access the money in your contract. It’s important to understand, however, that withdrawals may be subject to surrender charges, income tax, and even tax penalties.

A fixed deferred annuity may be worth considering if you are looking for a conservative way to grow a portion of your assets and avoid market volatility. It may not be the best choice if you prefer greater growth potential (and don’t mind taking on the risk that goes with it) or if you need income that starts right away.

Variable deferred annuities – Unlike fixed annuities, variable annuities are built to provide financial market exposure. Variable annuities generally offer a broad range of investment options – from more conservative fixed accounts to riskier growth options. Like a fixed deferred annuity, the money in a variable annuity also benefits from tax deferral. You don’t pay current taxes on earnings in your contract until you withdraw them – which means more of your money remains available to benefit from potential growth. A variable annuity also offers a variety of options when it comes to receiving income – including lifetime income options.

Of course, greater growth potential involves more risk. A variable annuity can increase or decrease in value, depending on how financial markets perform. When considering a variable annuity, it’s essential to understand how the annuity works, including associated fees and expenses as well as the surrender charges, income tax and tax penalties that typically apply to deferred annuities. Just as important, you should have a clear sense of your financial goals and tolerance for risk. A financial professional can help you make an informed decision on whether a variable annuity is right for you.

In next blogpost, we will discuss Income Annuities.

Why Adding Chronic Illness Riders to Your Life Insurance Policy

10/12/2020

By adding life insurance with chronic illness riders to your financial plans, you can be better prepared for life’s unexpected expenses. Gain the traditional values of a life insurance policy – death benefit for your loved ones – plus living benefits to help pay for LTC expenses while keeping your investments intact.

Enjoy the flexibility.

Unlike a long-term care policy, life insurance living benefits are not a “use it or lose it” feature. In the event of a qualifying condition, clients have the power to choose how the funds are used.

52% of Americans reaching 65 will need some type of long-term care services in their lifetimes
$102K is the annual cost for a private room at a nursing home facility
75% do not know that permanent life insurance can be used to cover long-term care costs

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