Life, Annuities, Disability, LTC
Life Insurance
Term Life
Term life insurance provides affordable protection for a specified period of time at a scheduled premium level. It is the simplest form of life insurance – you choose the coverage level (death benefit), term (number of years your premium is guaranteed), and name a beneficiary (person you want to receive the death benefit if you die).
This type of coverage is best when life insurance is essential, but premium dollars are limited. It is insurance to help protect your family or business by covering expenses in a cost effective manner.
Term life insurance covers a defined period of time, so what happens if you outlive your term policy? You can renew your coverage, often at a higher premium, without having to provide evidence of good health. Depending on the carrier, you may also have the ability to convert to a permanent life insurance product without having to answer health questions. If you can’t afford a permanent life insurance product now, convertible term life insurance protects your future insurability.
Universal Life
The flexible design of universal life insurance (permanent coverage) allows customized policies with features that best fit your situation.
Universal life insurance is a flexible-premium, adjustable-benefit life insurance policy that can accumulate cash value. The flexibility of this policy allows you to tailor the amount of insurance as your personal or business needs change.
With this type of life insurance, you are allowed to take tax-free* loans from your policy if needed for other obligations. However, this action can affect the performance of your policy, so please communicate with your insurance agent. *We do not offer tax advice, please consult your tax professional.
Whole Life
Whole life insurance (permanent coverage) is guaranteed to remain in-force for the insured’s lifetime, provided the required premiums are paid.
Whole life insurance plans are often more costly than universal life insurance, but whole life policies have guarantees built into them. First, your death benefit is guaranteed as long as premiums are paid. Second, whole life insurance guarantees you will yield some cash value throughout the life of the contract. If the insurance company performs better than originally projected, you may see both the cash value and the death benefit grow beyond what is guaranteed due to credited dividends.
Much like universal life insurance, with whole life policies you are allowed to take tax-free* loans out of your policy if needed for other obligations. However, this action can affect the performance of your policy, so please communicate with your insurance agent. *We do not offer tax advice, please consult your tax professional.
Final Expense
Often known as burial life insurance, final expense insurance provides those you leave behind with the financial means to pay your remaining expenses, outstanding debts, and legal fees. This plan offers coverage that is permanent with premiums that never change.
For those individuals that are uninsurable, we do have guaranteed issue plans available. These plans will provide a maximum benefit of $25,000, however, the full death benefit is not available until the policy has been in force for two years.
Annuities
Fixed
Fixed annuities are a safe place to hold your money that will often yield a higher annual percentage than a CD at your local bank. Interest rates in these plans are guaranteed and set by the insurance company selling the plan. Surrender periods do apply, so you need to choose a suitable investment period to have your money tied up with minimal access to those funds without penalty. Growth within these plans is tax deferred, but note that any money you take out is taxed on a first-out basis unless your account is set-up as a Roth IRA.
Fixed Indexed
Fixed indexed annuities are tax deferred and returns are based on an index of your choice such as the S&P 500, Dow Jones, or Nasdaq and selected crediting method. You have protection against a market down-turn if your indexes perform inversely, and you will not lose any of your principal investment. Although interest credited to a fixed indexed annuity is based on an index that shadows the market, you are not directly invested in the stock market.
Disability
Unfortunately, a disability strikes more often than you’d think – so it’s important to protect your ability to earn an income. This is true whether you are single or have a family. Disability insurance insures your paycheck.
Disability income insurance (DI) offers protection through benefits that replace a portion of your pre-disability income. The monthly amount you qualify for, benefit period, and premium all depend upon your occupation and income.
Long Term Care
Traditional
Long term care (LTC) insurance lets you plan for the worst, with the option to have the best. You can decide where you want to receive your care – at home, in an assisted living facility, nursing facility, or adult day care. This form of insurance protects your estate and shields loved ones from your extended and chronic care costs.
For many policies, benefits are triggered if one cannot complete two of six Activities of Daily Living (ADL) which include: bathing, continence, dressing, eating, toileting, and transferring. Severe cognitive impairment may also trigger policy benefits.
Traditional long term care plans may have dollar for dollar Medicaid protection via the South Dakota Long Term Care Partnership Program, click here to learn more about the program.
To understand current and future long term care costs in your area, click here to access Genworth’s Cost of Care Survey.
Life & Long Term Care Combo
A life insurance policy with long term care coverage accelerates the death benefit when long term care is needed. This means a portion of the death benefit is paid out early in order to cover long term care costs reducing the death benefit accordingly. If you never need LTC, or only partially accelerate the death benefit, then a death benefit is available to combat the “use it or lose it” argument against traditional LTC. We have combo products available for just one insured, or we can put a couple on one plan with a second-to-die death benefit.
Annuity & Long Term Care Combo
With an annuity and long term care combination policy, a one-time lump sum of money is utilized to fund both an annuity and long term care rider. The initial cost of LTC is paid from the annuity accumulation value which is reduced dollar for dollar. If the accumulation value is exhausted, the long term care rider will provide benefits up to the policy maximum. Any withdrawal(s) from the plan that are not for qualified LTC expenses will affect how the policy pays out. This type of policy leverages your premium dollars in the annuity while also purchasing the long term care rider which will further protect you against future LTC costs.
This policy combination is best for those who are not able to purchase a traditional or life/long term care contract due to health complications.