The Disadvantages of Immigration Restriction as a Policy ...
Understanding Your Risks...• Cash value guaranteed as long as policy kept in force • May pay a...
Transcript of Understanding Your Risks...• Cash value guaranteed as long as policy kept in force • May pay a...
Understanding Your Risks: Protecting your income and
lifestyle with insurance! Presented By: Ross Karp, CLTC
What is the best-selling multiplayer board game in America?
What do you receive for passing GO?
$200
Why did you receive $200?
It is your salary.
What happens in Monopoly when you go to Jail?
You can’t collect any money.
Agenda:
• What are people’s concerns (what do they want to protect)?
• Why use insurance? • How much do I need? • Types of insurance:
- Life • Term vs. Permanent
- Disability Insurance - Long Term Care Insurance
• Additional Benefits of Life Insurance
Why do people work hard?
• Buy home
• Vacation
• Children’s education
• Clothes
• Repay education loans
• Create lifestyle for ourselves and our family
What can get in the way?
The M&Ms
Mortality & Morbidity
Life Insurance
• Term Insurance
• Permanent Insurance
− Whole life
− Universal life
Life Insurance • Term
− Advantages
• Low initial premium, level term period
• Suited for short term/temporary need
• Increased premium if renewed after term
− Disadvantages
• Premiums in future may become prohibitively expensive
• Coverage may cease
• Does not build cash value
Life Insurance • Permanent (Whole Life)
-Advantages
• Guaranteed lifetime protection
• Fixed premium
• Cash value guaranteed as long as policy kept in force
• May pay a policy dividend
- Disadvantages
• No premium flexibility
• Conservative potential compared to investment vehicles
• Death benefit may not keep pace with inflation
• Significantly more expensive
Life Insurance • Universal Life
− Advantages
• Lifetime protection
• Premium flexibility
• Cash value growth reflects current interest rates with minimum guarantees
− Disadvantages
• Premium may increase as insured gets older
• In a low interest environment, growth may be disappointing
Additional Benefits
• Family Protection
• Deferring Financial Risk
• Income-Tax Free Benefit
• Policy Loans, Dividends
• Charitable Giving
• Special Needs Planning
Your most valuable asset is probably underinsured.
You insure…
Your home Your car But what about your income?
Everything Rests on Income
Other Financial Means How would you replace your lost income?
• Savings?
− One year of disability can wipe out 10 years of savings
• Borrow?
− What bank would lend money if you were disabled and unemployed?
• Social Security?
− To qualify, your disability must be expected to last at least 12 months or end in death.
• Other Income?
− Could you maintain your standard of living without placing additional strain on yourself and family?
Disability Insurance • If you couldn’t physically go to work…
− How long would your savings last?
− Would your spouse/partner’s income make up the shortfall?
− What lifestyle changes would your family need to make?
− Future about dreams…Travel, college, comfortable retirement?
Causes of Disability
• Accident – 10.3%
• Cancer – 14.6%
• Cardiovascular – 9.1%
• Maternity-related – 5.1%
• Mental/Psychiatric – 9.1%
• Musculoskeletal – 27.5%
Disability Insurance
Personal Long Term Disability
• Provides income stream monthly
• Tax free if paid with post-tax dollars
• Cost of living adjustment
• Residual benefit for when you start back at work
• Catastrophic benefit
Insurance for Small Business Owners
• Buy/Sell Agreement Funding
• Key man insurance protection
• Business overhead expense protection
Long Term Care Insurance • What are your activities of daily living?
• Transferring • Bathing • Dressing • Feeding oneself • Toileting • Continence
• What if you needed care? In home or a facility? • Where would those funds come from?
What is Long Term Care?
• Long term care can be broadly defined as:
• Care provided by another party for the benefit of those who are unable to care for themselves
• Usually provided for an extended period of time
Long term care is personal care assistance.
Long Term Care is Not Only About You… It is about you and your family.
Long Term Care Insurance
• Pays for covered custodial and community care
• Benefits are paid for covered care you receive
• Helps to protect your financial strategies
Long term care insurance doesn’t replace the need for care – it builds on it, allowing the caregiver to take care of you better and for longer.
Where is Long Term Care Delivered?
• Where you need it.
• Not just in nursing homes.
• Often in your own home.
What to Look for in a Long Term Care Insurance Policy
Basic Policy Features
Benefit Amount • Applied as daily or monthly amount
Elimination Period • How long is the “deductible”? • How many choices?
Home Care Cost of Living Adjustments
QUESTIONS
Thank You!
Ross Karp 3P Insurance Services
914-443-9709 http://finsecurity.com/rkarp