Life Insurance

Life insurance is one of the basics of financial planning. It allows you the security of knowing a beneficiary will be able to live comfortably if you are not here. The policy could pay enough to replace the missing income or be used to pay off a mortgage or other obligation.

There are two categories of life insurance:

Term – you pay a premium to the life insurance company and the company pays your beneficiary at your death

Whole Life – you pay a premium that is larger than the term insurance premium and the company promises to pay a beneficiary at your death or pay you in retirement. The extra amount charged is saved in an account that builds cash value in your policy. This cash value can help fund your retirement needs.

Disability Insurance

This type of insurance is another pillar of a financial plan. With disability insurance, you can have part of your income paid to you when you can’t work because of an illness or injury. You can think of your income as the most valuable asset that you want to protect.

More than one in four 20-year-olds will experience disability for 90 days or more before they reach 67, according to the Social Security Administration.

Long-Term Care Insurance

This insurance is not only a protection for you and your assets but for your loved ones who may have the responsibility of taking care of you. Buying long-term care insurance is one way to prepare for the chance that you may need some help later in life. Long-term care refers to a host of services that aren’t covered by regular health insurance. This includes assistance with routine daily activities, like bathing, dressing, or getting in and out of bed.

A long-term care insurance policy helps cover the costs of care when you have a chronic medical condition, a disability, or a disorder such as Alzheimer’s disease.

There are many facets to each of these types of insurance. We would be pleased to discuss this topic with you.

Annuities

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You buy an annuity by making either a single payment or a series of payments. Similarly, your payout may come either as one lump-sum payment or as a series of payments over time.

People typically buy annuities to help manage their retirement income by replacing a paycheck.

Annuities provide:

• Periodic payments for a specific amount of time. This may be for the rest of your life or the life of your spouse or another person.

• Death benefits. If you die before you start receiving payments, the person you name as your beneficiary receives a specific payment.

• Tax-deferred growth. You pay no taxes on the income and investment gains from your annuity until you withdraw the money.