Financial Insurance Services for your peace of mind…
life | annuities | disability | long-term care
After protecting your investment in your home, jewelry, and other valuables by securing adequate homeowners’ insurance; after you have guarded against financial loss due to an auto accident with sufficient automobile insurance; and after you have secured an umbrella policy to safeguard your “net worth,” it might be prudent for you to now consider life insurance. Life insurance provides a solution to the economic losses associated with death, sickness, and accidents. The worth of insurance lies in its ability to life values, the value associated with an individual’s earning potential, and to provide financial security.
Your reasons for considering life insurance, or other financial services, might include:
• Continuation of your standard of living despite injury, illness, or disability
• A guarantee to enable the satisfaction of a debt commitment (mortgage, loans, investments) despite a life changing event
• As protection to a business against interruption caused by loss of a key employee or key executive
• A means to provide income for retirement
• To facilitate a buy-sell agreement brought about by the death of a partner in certain companies
• To fund the education of a specified individual or family member
• As an investment instrument
• To fund final expenses for a designated individual
• As a continuation of monthly income for spouse and dependent children following the death of a breadwinner
An annuity is a contract with an insurance company which is primarily an investment product, unlike life insurance, where policy issue and pricing are based mostly on mortality risk. An annuity may be funded with a single sum amount or through the use of periodic payments. The insurer, then, credits the annuity fund with a certain rate of interest which is not immediately taxable to the annuitant. Most annuities guarantee a death benefit payable in the event the annuitant dies before payout begins; however, it is normally limited to the amount paid into the contract plus interest credited. Benefits are normally paid out through monthly, quarterly, semiannual, or annual payments.
Disability income insurance is designed to provide an individual with a stated amount of period income in the event he or she cannot work due to disabling illness or accident. Statistics show that the probability of disability far exceeds the probability of death during an individual’s working years. The need for protection against a wage earners’ inability to work cannot be overemphasized and it is this need that disability income insurance fills. Benefits paid under a disability income policy are normally in the form of a monthly income payment.
As individuals age, they are likely to suffer from acute and chronic illnesses or conditions. An acute illness is a serious condition from which the body can fully recover with proper medical attention. Some people will suffer from chronic conditions that are treatable but not curable illnesses. Typically, the need for long term care insurance arises when physical or mental conditions, whether acute or chronic, impair a person’s ability to perform the basic activities of everyday life—feeding, toileting, bathing, dressing, and walking. This is the risk that long-term care insurance is designed to protect.