Tuesday, December 30, 2014

Why Buy a Fixed Indexed Annuity

Why Buy a Fixed Indexed Annuity?


Fixed annuities are insurance products which protect against the risk of outliving your income. They are insured by licensed & regulated insurance companies, similar to how your home, auto or health is insured. And just like your home, auto and health insurance, they are backed by the insurance company up to stated policy limits.






to learn more...



Video Courtesy of Indexed Annuity Leadership Council

Type of Life Insurance

Do You Know the type of life insurance that you need?

Before beginning to consider my question, educate yourself a little with some knowledge about the choices available to you.

The image below illustrate three basic life insurance categories you can compare.The image above illustrate three basic life insurance categories you can compare.


type of life insurance


If you still not sure which one to choose, just contact me for a no cost, no obligation consultation.


Saturday, December 27, 2014

Life Insurance for Children




Life Insurance for Children at a Glance


Life Insurance for Children
Life Insurance for Children may sound like the last thing in your mind and probably the last person who needs a life insurance policy in your house. But, among the many financial decisions parents and grandparents face today, buying life insurance for children is one that can make l lot of sense.

In general, you'll have to be in healthy to buy any life insurance. If for any reason you are not, you will pay a higher price in premiums or in worse case scenario you may not be able to buy life insurance at all. By buying a permanent life insurance for your children today, you'll help ensure your children's ability to have some protection later on in their life, even if they become less healthy when they reach older ages.

Should you buy Life Insurance for Children?


There are situations where a Life Insurance for Children makes sense, but in most cases, experts suggest it’s more important that the parents have life insurance themselves before considering buying one for their kids. Sometimes Financial Advisors (FA) or even Insurance Agents do not recommend life insurance for children just because they only look at the two most popular reasons why people buy life insurance:

  • To replace wages [protecting your family financially] in the event of premature death,
  • Or as a tax-deferred savings vehicle [e.g. Annuities, IUL, etc.]
As an Insurance Agent in South Jersey, I don't focus on those two reasons only when I recommend a Life Insurance product to prospect or an existing client. Before I recommend any product at all I do a need assessment of the family as accurate as I possible can and then based on those factors I recommend a product to fit their needs, peace of mind and budget.

Some Features & Benefits of Life Insurance for Children


When I talk to prospects or existing clients I highlight many more benefits than the two mentioned above, and taking advantage of those features and benefits can guarantee your child or grandchild's future life insurability and lock in their childhood rates for life. Some of them are:
  • Affordable rates that are locked in for life,
  • Face amounts as low as $10,000,
  • Available for ages 0 to 16,
  • Guarantees future life insurability, regardless of the child's future health*
  • Options to completely pay for the policy in 5 or 10 years,
  • Permanent coverage that never expires**
  • Give the gift of Life Insurance to a young person you love marking a special milestone in their life
I personally don't like to focus in negativity, but when it comes to an investment as juvenile life insurance for a child or grandchild it's important to take in consideration facts from respected sources to understand that there is a potential risk of future uninsurability and it's very real.

According to American Diabetes Association about 208,000 Americans under age 20 are estimated to have diagnosed diabetes, approximately 0.25% of that population. - See more at: www.diabetes.org

According to Centers for Disease Control and Prevention [CDC] 7 Million children had Asthma, that's equal to 1 in 11 children, Asthma is a disease that affects your lungs. It is one of the most common long-term diseases of children. In most cases, we don’t know what causes asthma, and we don’t know how to cure it. We know that if someone in your family has asthma you are more likely to have it.

The realities of childhood cancer worldwide, 175,000 children are diagnosed with cancer each year. 
And in the U.S., more children die of childhood cancer than any other disease, more than AIDS, asthma, cystic fibrosis, congenital anomalies and diabetes combined.

Now, my intention in sharing this few facts (amount many others) it's not to scare anyone or to suggest you buy any life insurance for your child, my intention is to educate you about a very real potential risk that sorrowfully affect all of us equally.


10 Important Reasons for
Juvenile Life Insurance

  1. Guard against possible uninsurability due to future health issues
  2. Lock in low childhood rates for life
  3. Create a financial head start for your child / grandchild
  4. Build cash value from a young age
  5. Help provide life long insurance protection
  6. Generational gifting
  7. Prepare for the unthinkable
  8. Options to increase future insurance coverage with available rider
  9. Help teach financial responsibility
  10. Help provide peace of mind
Buying life insurance as an investment made sense, and today there are countless ways to grow money with relatively low risk taking and give a child an important head start lifelong protection. Everyone wants what's best for their children or grandchildren, why not you?

If a Financial Advisor (FA), Insurance Agent or any other financial assistance representative comes to me telling me I shouldn't buy Life Insurance for my kids because it doesn't make sense I will turn around and run as fast as I can, but that's me... What would you do?

I just bought an Indexed Universal Life (IUL) for my 15 years old child, I'm paying $100/month, with increased death benefit and by the time he reach 50 he would not have to worry about protecting his family at all, not to mention the cash value gained. By the time he reach 65 if there's no Social Security he wouldn't have to worry because the policy will have over 300K death benefit (DB) and over 300K in cash value (CV).

If god give him a blessed life and he reach 85, the increased death benefit would be over 1.3 Million as well as the cash value (CV), so you tell me if it does or doesn't make sense to buy Life Insurance for Children?

If you happen to live in South Jersey and want to learn more...
... for a no cost, no obligation appointment.




 * With the purchase of Guarantee Insurability Benefit Rider.
** As long as premiums are paid and the policy is inforce.


Friday, December 19, 2014

Life Insurance


Life Insurance

A Quick Guide On Life Insurance Policies

Life insurance is an important part of adulthood. The tips offered in this article will help you choose the right life insurance policy for you.


When deciding how much life insurance you need, consider your family's particular situation, needs and budget. Different families will need different amounts of coverage in the event that someone passes away. You must make sure that the amount of coverage is enough to care for your loved ones should this occur.

Make sure you don't get too much or too little life insurance. It can be confusing to try to calculate the exact amount of insurance you need. However, it'll help you avoid problems later on if you do this first. Think about the balance of your mortgage, property taxes, college tuition and other needs when you are trying to evaluate how much coverage to buy.

Your total cost on the life insurance will go up if you routinely do things that are dangerous. Think about giving up hobbies like bungee jumping and skydiving because it may reduce your rates. Traveling to risky areas around the world could also make you ineligible for discounts.

You'll find there can be tremendous variation in the cost of insurance companies. Some insurance companies charge almost half again what others charge for the same coverage. Plenty of online sites will let you view and compare several quotes at once, but nothing is better than a face-to-face meeting with an Insurance Agent Representative, specially if they are local, also look for one that allows you to adjust the quote based on your own needs.

Make sure to get many different quotes when looking for life insurance. You'll find that every company uses different factors to set premiums, weighing each item differently. If you smoke, you will encounter different rates of insurance quoted by different companies, so spend some time in evaluating a number of quotes before you make a decision.

By investing in life insurance, you will be protecting your family in case the worst happens to you. The purchasing of life insurance requires many things to think about. By taking advantage of the advice offered here, an informed choice can easily be made.

If you are local in the south jersey area and have more questions about Life Insurance, contact me below.











Definition of term life insurance

Definition of term life insurance to help you make a wise decision


Strategies that Will Help You Save with Life Insurance

With everything else going on in your life, it can be nearly impossible to understand the Definition of term life insurance and at the same time keep track of the latest trends and information. Here in this article you will find some information and will help you get more educated for what you have been looking for.

The definition of term life insurance policies, just as their name suggests, are limited as to how long they will stay in effect. Term insurance is attractive because of the lower cost, which is why many people buy it. However, when you put money into a traditional permanent policy, you're investing in a kind of permanent financial asset. If you'd like, you can even borrow against your traditional policy. On the other hand, your term life insurance will vanish the moment you stop making payments or outlive the length of the term.

More about the Definition of term life insurance


Some life insurance companies may suggest that you purchase a mortgage protection insurance policy, which pays off your mortgage should you die. However, it is wiser to take the amount of your mortgage into account when purchasing coverage for a term life insurance or whole life insurance policy. This makes more sense because your mortgage steadily declines over time, although your mortgage protection insurance premium does not. In the long run, it is more cost effective to include the amount of your mortgage in with your life insurance policy.

Definition of term life insuranceWhen considering purchasing life insurance, you must first understand your needs. You understand your financial situation better than anyone else, so do not let anyone convince you to purchase a policy you are not comfortable with purchasing. If you add your debt, estimated funeral costs, and 6-12 months of income replacement, then you can get an estimate of your insurance needs.

Before purchasing life insurance, you must understand clearly the intention or role that insurance is going to play for you and your family, if it's for protection purposes only, or it can serve or be use as an investing tool as well. Term insurance gives you protection only, with no savings. Whole life and universal life (UL) policies offer savings capabilities, but they are a lot more expensive and you would be better off using the cost savings to invest in something else.

Life insurance can help ease the burden to your family by helping with funeral and burial expenses. Policies also pay your family an amount that you designate. For a relatively low monthly cost, your family can be covered $25,000; $100,000; $250,000; $500,000, or another amount that is right for you.

Before purchasing life insurance, make yourself aware of what you need from your policy. There are no many agents out there that takes the time to help you figure out what it would take to cover your expenses associated with your surviving spouse or children, when they either finish college or reach adulthood, whichever comes first, and that's exactly what I do with all my clients first, analyzing your needs assessments before you make a decision it's crucial.

When looking for life insurance (Term - Whole Life - Universal Life), it's usually more beneficial to work with an insurance Agent or Producer than deal with an insurance firm. Insurance companies dedicated to selling only their products,  are more inclined to give you a more personalize service unlike an independent broker is just searching multiple options and companies to find you the best deal, but the best deal is no always the route to take since you are protecting your Family's future to start with. As life insurance will be a policy you want to retain for some time, do some shopping around before you make your choice.

One of the questions you want to ask before you buy insurance is whether it is possible to cancel the policy if the need arises. Cancellation is an option you should consider if your life insurance company doesn't live up to your expectations. Most companies charge a penalty fee for canceling the policy. Therefore, even if you are not planning to cancel the policy it is best to ascertain this information in advance so you know what you will be liable for if you ever cancel it.

In conclusion, it is definitely difficult to stay on top of all of the latest tips and updates coming out about life insurance. To make matters worse, information is constantly changing - making it nearly impossible to be an expert unless you make it a point to keep yourself up to date and that's why having a personal Insurance Agent assigned to your account is the way to go and luckily for you that's what I do day-in, day-out. 

Hopefully you found this article interesting, informative, and more importantly educational and you were able to learn more about the Definition of Term Life Insurance.

In the event of you having more questions, do not hesitate to





MetLife gets risk tag from U.S. panel

MetLife gets risk tag from U.S. panel

(Bloomberg) -- MetLife Inc., the biggest U.S. life insurer by assets, was labeled a systemically important financial institution (SIFI) by a council of regulators and said it will consider whether to sue the government over the decision.

The Financial Stability Oversight Council (FSOC) voted to designate New York-based MetLife a SIFI, the insurer said today in a statement.

The ruling subjects MetLife to stricter Federal Reserve oversight that could include tougher capital, leverage and liquidity requirements. The company can appeal in U.S. district court within 30 days... Keep reading >>

Source:

Wednesday, December 17, 2014

Americans Lack Understanding of Retirement Tax Impact

Middle-Income Americans Lack Understanding of Retirement Tax Impact, New Study Says

A majority of our country's middle-income Boomers and retirees have significant gaps in their understanding of how federal taxes will impact their retirement finances, according to a new study released by the Bankers Life Center for a Secure Retirement® (CSR).

In fact, today, more Americans have an accurate understanding of how lottery winnings are taxed (94%) than the mainstays of their retirement income: Social Security benefits (39%) and retirement accounts, such as traditional IRAs (35%), Roth IRAs (31%) and 401(k)s (29%).





Source:

5 worst states for local government hospital costs

5 worst states for local government hospital costs

The Census Bureau has released newly compiled government survey tables that drive home a key health policy point: Cities, counties and special districts help pay plenty for health care.

Policymakers usually talk about the health care spending coming out of the federal government, state governments, private insurers, employers and patients, but local governments are also playing a part. They spent $90 billion on hospitals alone in 2012, up from $41 billion in 2002.

Read more here 

Tuesday, December 16, 2014

How to buy long term care insurance

How to Buy Long Term Care Insurance [LTCi]

Knowing that you have taken proactive steps today to plan for tomorrow helps relieve the financial burden of extended care... for you and your family.

Protect your assets, independence and peace of mind

Thanks to advances in medicine, retirees are living longer, more independent lives. As a
result, an increasing number of those who are age 65 and older will require long-term care. Although many people assume Medicare will cover this expense, it often doesn’t.

That’s why a growing number of retirees are turning to long-term care insurance to protect their futures. Coverage for nursing home care, home health care or both helps you maintain control of where you will receive care, and it protects your life’s savings from the high cost of services.

THE CARE YOU NEED, THE CHOICES YOU WANT

When you're recovering from an injury or illness, it's comforting for you to know that you have choices when it comes to your care, including the option to receive care in the comfort of you own home. Long Term Care doesn't need to cost you an arm and a leg, there is protection designed specifically for home and facility care needs lasting a year or less.


  1. Helps to maintain control of where and how care is received
  2. Can help protect assets and personal savings from the high cost of Long-Term Care
  3. Helps preserve quality of life, specially in retirement
  4. Helps relieve the burden of care from loved ones
  5. To gain access to a professional care coordinator in a time of crisis
  6. Helps with planning for the future
  7. To help maintain independence
  8. Medicare generally only covers a portion of long-term care on a limited basis
  9. Covers some custodial care, which is one of the primary needs when dealing with a chronic illness or cognitive impairment
  10. Helps avoid reliance on government long-term care programs such as Medicaid
Any Questions?


Medicare Prescription Drug Plan

What drug plans cover

Each Medicare Prescription Drug Plan has its own list of covered drugs (called a formulary). Many Medicare drug plans place drugs into different "tiers" on their formularies. Drugs in each tier have a different cost.
A drug in a lower tier will generally cost you less than a drug in a higher tier. In some cases, if your drug is on a higher tier and your prescriber thinks you need that drug instead of a similar drug on a lower tier, you or your prescriber can ask your plan for an exception to get a lower co-payment.
A Medicare drug plan can make some changes to its formulary during the year within guidelines set by Medicare. If the change involves a drug you’re currently taking, your plan must do one of these:
  • Provide written notice to you at least 60 days prior to the date the change becomes effective.
  • At the time you request a refill, provide written notice of the change and a 60-day supply of the drug under the same plan rules as before the change.

NOT SURE WHAT KIND OF COVERAGE YOU HAVE?


ONLY NEW JERSEY (NJ) RESIDENTS!



Source:



What does Medicare Part B cover

What does Medicare Part B cover?

What's covered?

Medicare covers services (like lab tests, surgeries, and doctor visits) and supplies (like wheelchairs and walkers) considered medically necessary to treat a disease or condition.
If you're in a Medicare Advantage Plan or other Medicare plan, you may have different rules, but your plan must give you at least the same coverage as Original Medicare. Some services may only be covered in certain settings or for patients with certain conditions.

Part B covers 2 types of services

  • Medically necessary services: Services or supplies that are needed to diagnose or treat your medical condition and that meet accepted standards of medical practice.
  • Preventive services: Health care to prevent illness (like the flu) or detect it at an early stage, when treatment is most likely to work best.
You pay nothing for most preventive services if you get the services from a health care provider who accepts assignment.
Part B covers things like:

2 ways to find out if Medicare covers what you need

  1. Talk to your doctor or other health care provider about why you need certain services or supplies, and ask if Medicare will cover them. If you need something that's usually covered and your provider thinks that Medicare won't cover it in your situation, you'll have to read and sign a notice saying that you may have to pay for the item, service, or supply.
  2. Find out if Medicare covers your item, service, or supply.

Medicare coverage is based on 3 main factors

  1. Federal and state laws.
  2. National coverage decisions made by Medicare about whether something is covered.
  3. Local coverage decisions made by companies in each state that process claims for Medicare. These companies decide whether something is medically necessary and should be covered in their area.

NOT SURE WHAT KIND OF COVERAGE YOU HAVE?


ONLY NEW JERSEY (NJ) RESIDENTS!



Source:





What does Medicare Part A cover

What does Medicare Part A cover?

Medicare covers services (like lab tests, surgeries, and doctor visits) and supplies (like wheelchairs and walkers) considered medically necessaryto treat a disease or condition.
If you're in a Medicare Advantage Plan or other Medicare plan, you may have different rules, but your plan must give you at least the same coverage as Original Medicare. Some services may only be covered in certain settings or for patients with certain conditions.

In general, Part A covers: 

2 ways to find out if Medicare covers what you need

  1. Talk to your doctor or other health care provider about why you need certain services or supplies, and ask if Medicare will cover them. If you need something that's usually covered and your provider thinks that Medicare won't cover it in your situation, you'll have to read and sign a notice saying that you may have to pay for the item, service, or supply.
  2. Find out if Medicare covers your item, service, or supply.

Medicare coverage is based on 3 main factors 

  1. Federal and state laws.
  2. National coverage decisions made by Medicare about whether something is covered.
  3. Local coverage decisions made by companies in each state that process claims for Medicare. These companies decide whether something is medically necessary and should be covered in their area.

NOT SURE WHAT KIND OF COVERAGE YOU HAVE?


ONLY NEW JERSEY (NJ) RESIDENTS!



Source:

Nationwide agrees to $140M ERISA settlement




More than 13 years of litigation has yielded a tentative settlement in Haddock vs. Nationwide, a $140 million deal believed to be the largest ever in a service-provider revenue-sharing lawsuit.

Nationwide – the third-largest writer of 401(k) contracts in the nation – will be required to provide extensive fee and expense disclosure forms for all of its group and individual variable annuity contracts through plan sponsors’ websites.

Source: NICK THORNTON

Monday, December 15, 2014

What is an Annuity?

What is an Annuity?

When you ask your financial advisor: “What is an annuity” … usually they will try to give a complicated answer without taking into account that the person listening to them might have no idea what they are talking about.
I do the opposite, when someone asks me What is an annuity I answer:
An annuity is not more than a financial vehicle designed to help you accumulate money for your retirement or to turn your retirement savings into an income stream.
Some of the questions I ask my clients is: How prepared are you for your retirement?
Usually they don’t know, and I tell them… Do you know that traditional fixed and indexed annuities can address your specific concerns and help you achieve your retirement goals?… and they answer me: “Really?”
Yes, I answered… And also they will Guaranteed payments for the rest of your life.
When you start planning for your retirement this can become one of the biggest challenges you will face. But at the same time annuities offer a safe option to help you accomplish your retirement goals. In fact, annuities are retirement vehicles that can offer guaranteed payments for the rest of your life.



How Americans review Life Insurance

How Americans review Life Insurance

How Americans review Life Insurance

How Americans review Life Insurance may differ from person to person, for 4 years in a row LIMRA have been analyzing your attitudes on life insurance, retirement planing and your financial wealth.
  • How would you rate your financial wealth?
  • What are your thoughts on retirement?
  • Do you own a life insurance policy?
  • Why or why not?
Here are some statistics about How Americans review Life Insurance:
  • 65% of Americans agree that they probably need some type of life insurance and 27% said they need more than what they already have.
  • 31% said they felt the financial impact from the death of the family member within 1 month.
  • 52% between the ages of 25-34 are extremely concerned about not having enough money for retirement.
  • 47% between the ages of 35-44 are also very concerned about not having enough money for retirement.
  • 80% of Americans overestimate the cost of life insurance.
  • Those under the age of 25 overestimate the cost of life insurance by 10 times.
  • 59% haven’t bought life insurance or more of it because they have “other financial priorities.”
  • Financial priorities: 52% put expenses such as cable or mobil phone ahead of buying life insurance.
  • Financial priorities: 1 in 5 pay for activities like eating out in a restaurant over buying life insurance.
  • 24% haven’t bought any life insurance because “no one has approached them.”
How Americans review Life Insurance