Life Insurance
Deciding on the right Individual Life Insurance policy usually depends on your future goals. Whether you wish to provide a tax free income for your beneficiaries, have funds for the payment of the final expenses or estate taxes, replace the income that is lost if you die, or provide a significant charitable contribution, we can help you chose the policy that will fit your needs at an affordable price.
Individual Life Insurance can be important for
- A source of savings – If not paid out by death benefit, some types of life insurance can have a cash value.
- Final expenses – using life insurance to pay for funeral and burial expenses.
- Income for dependents – a life policy can provide much needed income for your dependents when you die. Many times this is used for children, but can also be used for a partner that has a loss of income.
- Inheritance – using a life insurance policy as an inheritance even if you don’t have substantial assets to pass on to your beneficiaries.
- Used to pay taxes
- Making a charitable contribution
Life Insurance Options
Generally age and health are the most important factor in the premium you will pay. Although you can purchase a policy at any age, the younger you are the more affordable the policies will be.
All life insurance policies are designed to pay a benefit when someone dies. The two most common types of life insurance are Term and Whole (or Permanent) policies.
Term Insurance is usually the most affordable type of coverage. The term of the policy usually lasts between 1 and 30 years and pays only if a death occurs during the policy term. Most term policies have no other benefit provisions. Term policies can be level term which means the death benefit will remain the same throughout the duration of the policy, or they can be decreasing term which mean the death benefit drops over the course of the policy’s term. When the policy term ends, you may or may not qualify for new coverage based on your health, and based on your age, the cost of the premium may be too high to be affordable.
The advantage of Whole or Permanent Insurance is the death benefit and premium will usually remain the same during the duration of the policy. These policies can also build cash value which may be withdrawn or loaned similar to a savings account.
The 3 types of whole life insurance are traditional whole life, universal life, and variable universal life, and there are variations within each type.
Here are some additional lines of insurance that we service
- Guarantee Issue Whole
- Simplified Issue Whole
- Term
- Whole
Individual Disability Insurance
Individual disability insurance is used to replace lost income if you are disabled or cannot work due to an injury or illness. At Signature Insurance and Investment Services, Inc, we can tailor a disability insurance policy to fit your individual needs. Many studies say that Americans can have a long-term disability by the age of 65, so this complement to your health insurance is necessary.
An individual disability insurance policy is a good way to cover income losses even with those who have some employer-paid coverage. Typically, disability premiums paid by you are not taxes but employer-paid benefits are. There are 2 types of individual disability insurance policies – long-term and short-term.
Basic ways of disability insurance
- Individual disability income policy
- Social Security disability benefits
- Employer paid benefits
Long Term Care Insurance
Today, the costs of nursing homes and elderly care is continuing to rise. If you plan now, you can provide you and your family with the coverage you need to protect your assets and maintain financial security that you may need later in life.
In general, if you can’t perform daily activities because of an impairment as a result of chronic illness or disability, you will need long term care. This would include the assistance you could need if you are unable to take care of yourself for a long period of time. However, some people who need help with these daily activities may only need them for a few months.
Do I need long-term care insurance?
Typically, don’t rely on Medicare if you’re over 65. Health insurance rarely pays for the cost of long-term care and Medicare usually doesn’t cover custodial care. Medicaid is a program that pays for the medical and long-term care expenses for poor people, so if you are in that situation, you may not need long-term care insurance because your state’s program may pay for your long-term care expenses.
In addition, if you have financial security, you may not need long-term care insurance. Many suggest to pay for your long-term care coverage as the expenses arise. If you realize you may not qualify for Medicaid and won’t have the financial means to cover all your expenses, long-term care insurance offers peace of mind for you and your family.
Some experts have gave suggestions on tips to help you decide whether to purchase long-term care insurance. If you meet these requirements, long-term care insurance may be a good fit for you and your family.
- You can afford the cost of the monthly premiums and can still afford the cost if there is a increase in premiums in the future.
- Your assets average more than $80K and your annual income averages at least $35K.
- Most companies will only write long-term care policies to individuals between ages of 40 and 84.
These are only guidelines and not rules for obtaining long-term care insurance, and you will need to consult your agent on the policies details and requirements.
Let a Signature Insurance and Investment Services, Inc agent explain the different options you have when considering life, individual disability, and long-term care insurance
