Risk Management Services

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Your income is your most valuable financial asset.  It would be extremely convenient our income was paid to us in one lump sum, but as we know we have to work for it.   Therefore, protecting your income from the unseen is paramount in any financial plan.Individual disability income insurance helps protect 60% of your income and provides financial protection if you become disabled for an extended period of time. Disability protection is for anyone, married or single, who depends on their income to pay their necessary monthly expenses.   While no one likes to think or talk about the unknown of a financial disaster, it is very wise to plan for it and consider it in their long term planning.

Several Features of Disability Insurance:

Suprisingly Cost Effective
The benefits paid to you are usually tax free.
The insurance is portable and can be taken with you during multiple changes in employment
Individual disability protect can complement existing disability benefit coverage that may be available to you.

Most professions can cover around 60% of their pre-tax income with long-term disability insurance. The one thing people should consider is within their group plans.  Since 1 out of every 4 Americans go on disability every day this should not be ignored.Most group disability plans contain general and vague definitions of the term “disability”. For example, if an doctor or an accountant has a specific skill set – but the disability may only pay them an income if they cannot work in any profession. Also, most group disability plans are provided by publicly traded  insurance companies and any benefit paid will be taxable if the original premiums were paid by the employer. The structure of a mutual company is much different from a publicly traded company.  Mutual companies make decisions based on the ownership of the company.   Therefore, once you own a policy with a mutual company you share in ownership of that mutual company which makes a different in how they pay claims, administer service, and investment decisions.

Long-Term Care Insurance

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You spend a lifetime working hard and saving for the future to ensure your family’s financial security. You purchase life insurance or disability income insurance, make investments and contribute to your retirement plan. And, while you can’t predict the future, you can continue to plan for it.

PEOPLE AGE 65 AND OVER REPORTED FUNCTIONAL LIMITATION

PEOPLE AGE 65 AND OVER WHO HAD DIFFICULTY WITH 1-2 ACTIVITIES OF DAILY LIVING

PEOPLE AGE 65 AND OVER WHO HAD DIFFICULTY WITH 304 ADLS

PEOPLE AGE 65 AND OVER WHO HAD DIFFICULTY WITH FIVE TO SIX ADLS.

There are several important issues you can consider when planning for the possibility that you may need care in the future.As a result of people living longer, the chances of needing long-term care increases.  Statistically, women will outlive men and most care is paid out in the long term care industry to females.  However, with advances in medicine, healthier lifestyles, and quality access to healthcare men and women need to strongly consider protecting their assets with some type of long term care insurance. As your family demographics change, you may need to explore other long term-care options.Long term care insurance isn’t just for nursing home care. Assistance is received in the home along with assisted living facilities. Due to the giant influx of retirees in recent years this has put a strain on the long term care industry and the unanticipated claims that have been paid out. Long term care has only been around for 40 years, but does not plan on going anywhere.   Insurance companies are adjusting to the trends of the market and are looking to serve the needs of the public with traditional long term care offerings and also hybrid products as well.Making a sound decision about whether to opt for long-term care insurance involves weighing the probabilities. Is it worth it to pay the premiums for many years–and risk premium increases or benefit cutbacks along the way–in exchange for the peace of mind that your long term savings won’t be wiped out to pay for your care at the end of your life? What if you never need long-term care, or only need it for a limited time?Ultimately, the “right” decision will be evident only in hindsight. And in any case, the decision to buy long-term care insurance is a highly personal choice that will revolve around your health and your financial wherewithal, among other factors.We hope to guide you in this comprehensive financial decision making process.