Planning ensures that your goals are met.
Risk Management protects your assets.
Portfolios are built with Modern Portfolio Theory.
STRATEGIC INSURANCE PLANNING
I. Strategic Insurance Planning a. Medical Insurance
II. Medical Insurance
a. Health Savings Account (HSA) III. Disability Insurance IV. Property & Casualty Insurance V. Annuities a. Annuities VI. Life Insurance a. Term Life Insurance policies
VII. Long-term Care Insurance
a. Tax Qualified LTC Insurance (2 of 6 ADLs), Non-Tax Qualified LTC Insurance (2 of 7 ADLs) as well as California Partnerships LTC Insurance (2 of 6 ADLs & asset protection) which provides for additional asset exemptions equal to the amount of coverage purchased. Annuities can be purchased (or reverse mortgages attained) to pay the premium for LTC policies. Whole Life insurance (with cash value) and LTC / accelerated death benefit riders are another solution. VIII. Government Health Care a. Medicare - Senior Health Insurance
Is protecting against unforeseen events: Medical & Disability insurance protect against the costs of health problems with money to pay bills. Property & Casualty insurance protects against the loss of valuables by reimbursing you for losses. Annuities are insurance products which help you save; they are tax-deferred savings programs underwritten with insurance. Life insurance is a gift for loved ones and may create an immediate estate, conserve an estate, protect survivors, accumulate cash and/or facilitate borrowing. Long-Term Care insurance protects against the costs of home, assisted living and/or nursing care expenses.
Many applicants are told that because of their medical history, they are not eligible for insurance, this may not necessarily be true. It does mean that you may need special help from an impaired risk underwriter. FREE Insurance Quotes.
Private and group policies. Choices include HMOs, PPOs, POSs, the Blues, Medical expense / reimbursement, HSAs, FSAs and HRAs. Your concerns should be who are my choices of health care providers, how much is my monthly premium, deductibles, copay and co-insurance.
b. Disability Insurance
Private and group policies. When you cannot work you will receive income from this policy based on your percentage of insured income, elimination period and duration of benefits.
c. Property & Casualty Insurance
Private and business policies. Home, car, business and "valuables" insurance should be reviewed to manage monthly premiums, deductibles and coverages.
d. Annuities
Qualified and non-qualified contracts. Your choices should include how long of a contract will you enter into, how much risk will be taken investing the money, what type of returns can you expect and how and when will you take money out of the contract.
e. Life Insurance
Private and group policies. Would you like to be insured for a limited number of years or for a lifetime. Will this gift be to a surviving spouse, children, grandchildren, other family members, public or private charities, business partners / employees or others. Who will fund the policy and how will you deal with tax issues.
f. Long-Term Care Insurance
Private, group policies, tax qualified, non-tax qualified and California partnerships. Will the policy cover the costs of Home care and/or Institutional care. How much daily benefit are you purchasing, what is your elimination period and how long will you receive payments.
The Health Insurance Counseling Advocacy Program (HICAP) provides free information to the public about health insurance. In addition to HMOs, PPOs, POSs, the Blues, Medical expense / reimbursement, FSAs and HRAs. HSAs are the fasting growing new choice for Americans seeking health care coverage.
High-deductible health insurance policy with a portable savings account:
HSA details.
Pays a specific income benefit for those who are unable to work because of illness or injury. FREE Disability Insurance Quotes.
i. Short-Term Disability policies are provided through private insurers with up to 100% of income coverage, no elimination period and 2 years of benefit.
ii. Long-Term Disability policies are provided through private insurers with benefits up to age 65 and choices of income coverage and elimination periods. Workers Compensation and Social Security Disability Income are State and Federal run programs.
Americans are most familiar with their Home and Auto insurance. Policies can cover almost any type of business and "valuables" which are at risk. The management of monthly premiums, deductibles and coverages is what is most important.
Annuities are insurance products underwritten by insurance companies. FREE Annuity Quotes.
Tax-deferred accumulation until distribution/annuitization (retirement date) at which time you may choose from different payment options. Your money is invested in one of three styles: fixed rate, equity-index linked, and variable (investment choices). Annuities are a "safe" investment in that they are underwritten by insurance companies with incorporated downside protection (insurance). Like insurance the beneficiaries of annuities avoid probate.
Annuities can be funded with a single contribution or with may contributions. Annuities funded with after-tax dollars are non-qualified and only the "portion which constitutes the gain" will be taxed at distribution as income. Annuities qualified as a retirement savings plan receive special tax treatment - the contributions are before-tax (tax-deductible).
b. 1035 Exchanges
1035 Exchanges and IRA annuity reclassifications are like-kind exchanges and are classified as non-taxable events. Distributions from an Annuity contract generates an IRS Schedule 1099. Transfers must occur within 60 days and generates a IRS Schedule 5498 (5498 cancels out the income recognition of the 1099).
A gift to a surviving spouse, children, grandchildren, other family members, public or private charities, business partners / employees or others. FREE Life Insurance Quotes.
Temporary protection for a specified period of time. There are many provisions and options that characterize these policies. There are four main types: level, decreasing, increasing, and re-entry term.
b. Whole Life Insurance policies
Permanent protection, which also builds cash value, dividend, loan and non-forfeiture options. There are many provisions and options that characterize these policies. There are five main types: ordinary, adjustable, variable (or flexible), universal, and variable universal.
i. Living Benefits of Life Insurance. These benefits accrue to the Policyholder during their lifetime:
Living Benefits details.
c. Joint Life / Survivorship Insurance policies
Joint Life provides for a surviving spouse while Survivorship policies facilitate the transference of an Estate intact by providing the funds to pay Estate taxes.
d. Personal Split-Dollar Insurance policies
Split-Dollar splits the premium payment between two or more parties:
Personal Split-Dollar details.
e. Business uses of Life Insurance
Buy-sell agreements, key person/employee, deferred compensation, and the use of split-dollar are common business uses:
Business Split-Dollar details.
f. Modified Endowment Contracts (MECs)
Over funded whole Life insurance contracts with tax-deferred growth of the cash value. Unlike an annuity, if you pass away during the accumulation stage your beneficiaries receive the entire death benefit income tax free. Withdraws pre-59.5 will pay a 10% penalty tax.
g. 1035 Exchanges
1035 Exchanges are like-kind exchanges and are classified as non-taxable events. Distributions from an Insurance policy generates an IRS Schedule 1099. Transfers must occur within 60 days and generates a IRS Schedule 5498 (5498 cancels out the income recognition of the 1099).
Provided by private insurers - LTC is a form of chronic disability coverage. Benefits are triggered when 2 ADLs (activities of daily living including dementia, Alzheimer's). Benefits are paid as an indemnity/reimbursement or a lump sum to cover the costs of: adult day, respite, hospice, home health, residential, assisted living and/or skilled nursing care. FREE LTC Insurance Quotes.
Medicare and Medicaid are U.S. government programs.
Federal health insurance for people 65 and older and others of any age who have received Social Security Disability Insurance benefits for at least 2 years.
i. Part A - Hospital Insurance
Premium-free for eligible taxpayers:
Medicare (Part A)- Hospital Insurance details.
ii. Part B - Medical Expense Insurance
Optional, pays for doctors and outpatient hospital services, physical and occupational therapists and some home health care:
Medicare (Part B)- Medical Expense Insurance details.
iii. Part C - Supplemental / Medicare Advantage / Medicare+Choice / Medigap / Select Private Insurance
Optional, you must have Medicare Parts A and Part B to enroll in Part C:
Medicare (Part C)- Supplemental Insurance details.
iv. Part D - Prescription Drug Insurance
Optional, the standard plan has an average premium of $28 a month:
Medicare (Part D)- Prescription Drug Insurance details.
b. Medicaid (Medi-Cal in California) - Health Insurance
Federal and State administered plan for those in financial need and receiving public assistance:
Medicaid / Medi-Cal details.
Is it time to take advantage of Opportunities?