PERSONAL PROTECTION

 

Life Insurance

 

Medical and Dental Insurance

 

Long-Term Care Insurance

 

Medicare Supplement Plans

 

Disability Income Insurance

 

Annuities

 

Retirement/Legacy Planning

 

Estate Planning

 

Life Insurance

The Family Need

Life insurance is a necessity that few can live without. The death of a loved one cannot only cause emotional loss, but can cause substantial financial loss. With the loss of an economic provider, a family may not be able to sustain its standard of living. Mortgage payments, automobile loans, credit cards, and other debts may overwhelm the remaining family members. A well-organized life insurance program can give you peace of mind.

Business Needs

Businesses have unique life insurance needs to protect or conserve the assets of a business in the event of an unforeseen death. Every business has needs that are different depending on the structure of the organization. Two of the most common needs are Key Employee or Buy-Sell needs.

Two Basic Types of Life Insurance

Life insurance policies come in many different forms and plans each specifically designed to meet your individual goals. With the variety in policy types, there are two basic forms: Permanent and Term Life Insurance.

Permanent Life Insurance

Permanent Life Insurance plans (including Universal Life, Whole Life, Index Life, and Variable Life) are designed to give clients life insurance coverage that can last permanently throughout the policyholder’s life. Policyholders paying a consistent premium are able to keep a permanent policy in force until the policyholder chooses to cancel coverage or until death. With permanent life insurance, policyholders pay a higher premium in the first few years. Portions of the premiums being paid into the policy accumulate in an account earning tax-deferred interest. As the policy ages, the account value (the extra premiums that have been set aside) help keep the policyholder’s payments level. With most permanent life insurance policies, the policyholder can surrender the policy at any time and claim the policy cash value (a policy’s account value minus any surrender charges).

Term Life Insurance

Term life insurance plans offer life insurance for a specific number of years. Most term policies offer premiums that are level for 10, 15, 20 or 30 years. Because term life insurance policies offer coverage for a fixed period of time, term insurance is typically less expensive than permanent coverage. Policyholders can receive high coverage amounts for a fraction of the permanent plan cost. Term insurance can be a favorable alternative for clients needing life insurance for a short period of time (less than 30 years).

Term Versus Permanent

Clients have often been advised “Buy Term, Invest the Difference.” This is a simplistic and often incorrect viewpoint. Although term insurance can initially be less expensive, it may not be the most economic choice in the long term. The truth is, there is no BEST type of insurance policy. Every client has a different financial situation and financial need. The best insurance plan is the one that best fits your needs.

 

Long-Term Care Insurance

Everybody has known a family that has ended up financially devastated because of a lengthy illness of a family member. The only legacy that their heirs inherit is the medical bills of family members. This tragic outcome can be avoided by having adequate Long-Term Care coverage. Often it is only the family members of someone who has been seriously ill who understand the real importance of having Long-Term Care insurance.

Long-Term Care insurance provides payments for expenses that are not covered by Medicare or for people who don’t qualify for Medicaid. Home Health Care and Adult Day Care are a few examples of some covered benefits that Long-Term Care insurance can offer. The coverage takes effect when covered individuals are unable to perform specified activities (ADL’s). These include bathing, eating, continence, dressing, toileting and transferring.It will also pay benefits if you need supervision due to cognitive impairment such as Alzheimer’s disease or dementia. Medicaid only pays for nursing home care (not in-home care) and only after you have depleted your assets down to the poverty level forcing families to sell property and drastically change their life styles.

65% of all individuals who enter a nursing home sink below poverty line within two years of admission to a nursing home and never had the option of home care.

50% of unmarried couples who enter nursing homes sink below the poverty line within 13 weeks leaving few resources left for them after they have been discharged.

Although married couples are allowed to keep more assets than single people, these assets are subject to recapture by the State after death.

It is estimated that with the advances in medicine, 40% of all baby boomer adults will eventually need Long-Term Health Care.

Who should consider Long-Term Care insurance?

People who have accumulated estates and are in the middle or high income brackets.

People who may have a family history necessitating Long-Term Care.

Baby Boomers who are retiring within 15 years.

People who want to preserve assets.

People who want to stay independent.

Disability Income Insurance

Studies show that an individual between the ages of 40 and 65 has a greater chance of becoming disabled than of suffering an untimely death. With the average recovery period lasting two and a half years, disability income protection should be an important part of your financial plan.

Disability insurance income protects your most valuable asset-your ability to earn an income. If you are disabled and cannot work, the insurance company promises to pay you a predetermined benefit amount.

In order to understand the right type and amount of disability income insurance for your needs, you’ll first need to examine if you already have some coverage in place. For instance, you may have some form of disability income insurance through your employer. If you do, it may be a good idea to find out if you have short-term and/or long term coverage, and exactly how long the benefits last. Knowing what coverage you already have in place will help you determine if you need additional coverage to help pay for your home, automobile(s), utilities, goods, clothing, education, etc., in the unfortunate event you ever become disabled.

If you’re self-employed, you need to carefully examine how a disabling injury or illness could affect you, your family, and your business. Because Workers Compensation insurance is often confused with disability income insurance, you need to know that Workers Compensation (required of employers in most states) only covers disabilities that occur while you’re on the job. Hence, in order to qualify for benefits, the illness or injury must be work-related.

Annuities

An annuity is a long term retirement product that can provide lifetime income. The earnings on contributions are tax-deferred until withdrawn. Annuities may also include a death benefit for your beneficiary(s).

Annuities today can offer better returns than other conservative investments and can be designed to meet your retirement income needs.

Call or email for more information.

Email: ssg@sandisanders.com

phone:    (818) 223-9444
toll free: (888) 708-9444

Traditional Fixed Annuity

• Safety of principal
• Pays guaranteed interest rates for the life of the contract
• May pay a fixed interest rate based on contract terms
• Ability to convert the annuity to a guaranteed stream of income

Equity Index Fixed Annuity

• Safety of principal
• Pays a minimum guaranteed interest rate for the life of the contract
• Choice of interest crediting strategies
• Upside potential without downside risks
• Flexibility to move money between interest crediting strategies
• Ability to convert the annuity to a guaranteed stream of income

 

Retirement/Legacy Planning

There are two threats to your retirement. Either outliving your savings and/or having your savings lost to excessive and needless taxation.

There are huge tax advantages that allow people with IRA’s to create enormous tax-deferred and tax-free wealth for themselves and their families. Most financial advisors are not aware of this so it is important to work with an expert in this area.

 

Estate Planning

Why you should prepare an Estate Plan?

It is a common misconception that estate planning is important for only the wealthy or elderly. By investing the time now to plan your estate you could possibly save your loved ones months, if not years, of agony and literally thousands of dollars in court fees and/or estate taxes.

What is an Estate Plan?

An estate plan is a written expression of how you want your assets to be owned, managed and preserved during your lifetime and how you want them to be disposed of upon your death.

What is Estate Planning?

Arranging for the distribution of one’s wealth is what estate planning is all about. A critical part of estate planning is creating  documents that outline your wishes for distributing your assets after you die. Every individual has an estate plan. If you do not have a formal written Will or Trust, your estate plan is created out of default by your state. Every state in America has laws governing the  distribution of property when a person dies without a Will or Trust. If you have not made any provisions for the distribution of your estate before you die, your estate would be distributed according to your state’s “interstate succession” statutes which provide for the distribution of your estate.