Annuities

Annuity “Doublers” can help with Long Term Care

Presented by Richard Mangiameli More and more seniors are experiencing the need for, as well as the stress associated with, Long Term Care insurance (LTCi) benefits.  Seniors are concerned that when they need help with some activities of daily living (ADLs) and are required to move into an assisted living facility or require medical help with nursing home benefits, that the cost of those facilities could wipeout their hard-earned savings and assets.  They know the importance of having LTCi benefits, but are also concerned about the cost of a LTCi policy. This is where an annuity that has an income doubler can help clients protect their assets and help close the insurance gap.  With an annuity doubler option, there is no underwriting and there is only a small fee incurred, typically less than ½ of a percent. The payment stream could be as long as ten years.  As an example: take a male who is 65 years old and repositions $250k into this annuity.  The income five years later will be $24k per year.  If you cannot perform two of the six ADLs, the income will double to $48k per year. Following is an article I read from the NAIFA SmartBrief by Andrew Murdoch that further explores this topic. http://www.marketwatch.com/story/how-annuity-doublers-can-help-with-long-term-care-2015-04-21
Life Insurance

QUICK TWO-COLUMN LIFE INSURANCE NEEDS ANALYSIS SYSTEM – Part…

Presented by Brian Leising This is the short-form life insurance needs analysis system I use with life insurance prospects and clients.  The ten minute conversation achieves the same answers as an inch-thick comprehensive analysis, without the fancy full-color report.  Here’s how it works: Ask your client to take a piece of paper and draw a vertical line down the middle.  The heading on the left should be FIXED EXPENSES.  The heading on the right should be ONGOING INCOME NEEDS.  Start on the left.  Everybody needs funds to cover their final expenses (casket, burial, cremation).  Ask you client if they have any idea what that costs.  Maybe they had a loved one pass away recently and know current expenses in your area.  If not, I suggest $10,000-$20,000.  Next, ask them to list all debts they would like to pay off upon death. The largest will be their mortgage if they own their home.  Automobiles and credit cards should make up the remainder of the debts.  If the client has children, ask how they plan to fund college tuition.  If that is in their plans now, you can include an amount to cover that need in this column.  You could use other resources (outside the scope of this article) to determine what future tuition may cost.  You may want to revisit that portion at another time if time is a concern. Add up the numbers on the left column.  Ask your client if all those things were paid off, would they be able to maintain their standard of living on the remaining spouse’s income?  If they hesitate or are unsure, suggest that when one spouse passes away, the remaining spouse and children will need roughly 70% of the former combined income to maintain their standard of living.  Usually they will need some additional income. We will take a look at those ongoing income needs in the right column next week.