Life Insurance
Life Insurance
Life Insurance
Long Term Care and Disability Insurance
Help your Clients Understand the Financial Pitfalls of a…
Presented by Leonard Berthelsen Most consumers would be hard-pressed to explain what their real out-of-pocket costs would be if a major health issue occurred. Deductibles, co-pays, primary doctor vs. specialist, generic vs. name brand are just a few of the costs and decisions that come up. Then there are those expenses not really talked about or covered in their health plan such as travel, lodging, experimental drugs and procedures, not to mention time off work. Critical Illness and Cancer/Heart Attack/Stroke coverage can be a tool that financial professionals use to bridge the gap created by these out-of-pocket expenses. Having a lump-sum check arrive while your client is undergoing cancer treatment or recovering from a heart issue can be a huge relief to them and their families. As their health plans have increased deductibles and co-pays in order to keep premiums down, this results in only “kicking the can down the road” because eventually the cost is going to come back to your clients in the form of payments for those higher deductibles and co-pays. Many people have limited disability coverage at work, if they have it at all, and it may only pay a portion of their salary or wages. That loss of income potentially poses a huge financial risk to your client. Having a critical illness plan can soften the blow from reduced or stopped paychecks. Critical Illness and Cancer/Heart Attack/Stroke coverage can be tailored to your clients’ exposure and are designed to have affordable premiums. In addition, they potentially will pay for those expenses not covered by their health insurance plan. These products have limited underwriting and great compensation. Contact your Financial Brokerage Sales Manager today at 800-397-9999 to find out how Critical Illness and Cancer/Heart Attack/Stroke coverage can help your clients weather the financial risk from a health crisis!
Long Term Care and Disability Insurance
Business Overhead Expense (BOE) Disability Protection for your Client’s…
Presented by Leonard Berthelsen We sometimes don’t give much thought about a client’s business beyond the potential conversations regarding Buy/Sell, Key Man and Owner Disability Income coverage. There is a huge potential risk to a business due to a disability affecting the owner or owners. Think in terms of protecting the business from a disability, not just the individual. BOE protection does just that. It protects the business from an owner’s disability allowing it to continue to operate. Most small businesses are family or closely held companies that would be significantly impacted if the owner were disabled and not able to work or to participate in the daily direction of the business. Most companies would no longer thrive and many would just simply fail as a result. A BOE policy can be the life-line that protects and saves a business. Imagine for a moment your client that has a small business and the owner is involved in the daily operation. He has a couple of employees, a business loan, heat, lights and a mortgage to pay each month along with continually generating new business. A disability occurs to this owner and he is not able to be involved in his own business on a daily basis. How is payroll going to be met? How will he pay the light and gas bill on time? Who is generating new business? If the owner is unable to be involved in the day to day functions of the business, then that business will undoubtedly suffer as a result of the owner’s absence. Insurance coverage (BOE) to pay those monthly bills will allow the business to remain open. If a sale of that business becomes necessary due to the owner’s disability, then a calculated well thought out business plan can be put in place to accomplish that. Contact your Financial Brokerage Sales Manager at 800-397-9999 to learn more about the Business Overhead Expense plan that just might save your client’s business.
Long Term Care and Disability Insurance
Are your clients assets protected if they need long…
Presented by Donna Ries When talking to your clients about extended long term care planning, it is important to emphasize that income pays for care, not assets. Health insurance covers virtually none of the long term care costs of nursing homes, assisted living facilities or in-home care. The care many people may require late in life is paid out of pocket. Even substantial savings can quickly be spent for extended care. The Long Term Care Partnership Program may be an answer to help protect your client’s assets. The 2005 Deficit Reduction Act combines public and private insurance resources to help clients prepare for potential long term care needs. Because state and Medicaid eligibility requirements may vary, you should consult an attorney or tax advisor for information related to a specific situation. Long term care insurance under these programs may create an opportunity to enjoy the benefits of both long term care insurance coverage and asset protection in the event that Medicaid benefits are required. With a Partnership-qualified long term care policy, your client may be able to qualify for Medicaid while retaining more assets than otherwise permitted. To qualify for the benefits of a Partnership Program, the policy must be a federally tax-qualified plan and must meet inflation protection requirements based on the client’s age as of the date of the application. Individual state requirements may vary. Certain states may require specific levels of inflation protection to qualify. If the client is younger than 61, the plan must include compound inflation. For ages 61 to 75, the plan must include some form of inflation protection. As an example, suppose your client purchased Partnership-qualified long term care insurance and received $300,000 in benefits. Usually, your client would be able to keep an additional $300,000 in savings or investments, in addition to the assets your state already allows your client to keep and still meet your state’s asset test for qualifying for Medicaid. Without the Partnership Program, your state may require that your client spend their $300,000 in savings or investments for long term care services prior to becoming eligible for Medicaid. Remember, generally both income and assets are included in determining eligibility for Medicaid, and that the Partnership Program protection relates to your client’s assets only. It is important to note that, in most states, you are not required to use all the benefits of your long term care insurance prior to receiving dollar-for-dollar asset protection. Every benefit dollar counts. It’s critical that you discuss how the cost of extended care will be covered. Call us to discuss how long term care planning can help protect your client’s assets.
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