Benefits & You
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Benefits & You
News and Information on how Supplemental Health, Life, & Disability Insurance can provide an improved safety net for you and your family.
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Using Whole Life to Save for Retirement

Using Whole Life to Save for Retirement | Benefits & You | Scoop.it
The client, a doctor who owned his own practice, was looking for ways to put more money aside so he could retire by age 60. What he wasn't looking for was more risk.
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Cancer Insurance May be a Vital Tool for the Young

Cancer Insurance May be a Vital Tool for the Young | Benefits & You | Scoop.it
cancer insurance are more likely to seek early treatment The study is based on data from several thousand patients throughout the U.S. between the ages of
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Life Insurance - Buy Direct Or Use A Financial Planner?

Life Insurance - Buy Direct Or Use A Financial Planner? | Benefits & You | Scoop.it
Have you been watching much TV lately? Rarely can you get through a commercial break on TV without seeing an advertisement to buy life insurance 'direct'.
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Contractors Pay Less for Employee Benefits, Survey Finds - Washington Business Journal

Contractors Pay Less for Employee Benefits, Survey Finds - Washington Business Journal | Benefits & You | Scoop.it
Government contractors continue to reduce their contributions to employee benefits...
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Cancer Survivor, 22, Advocates to Have all Medications Covered by Insurance

Cancer Survivor, 22, Advocates to Have all Medications Covered by Insurance | Benefits & You | Scoop.it
Cancer survivor, 22, advocates to have all medications covered by insurance
Fox News
Diagnosed with stage IV thyroid cancer, Tricia had to immediately undergo surgery to remove her thyroid and begin oral radiation/iodine treatments.
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A Few Tips On Purchasing Life Insurance

A Few Tips On Purchasing Life Insurance | Benefits & You | Scoop.it
Figure out how much you need with life insurance, then purchase that amount. If you purchase a policy that exceeds your needs, your beneficiaries' quality of life may suffer in the wake of your passing.You will feel better secured if you make ...
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The importance of life insurance for parents

The importance of life insurance for parents | Benefits & You | Scoop.it
The best time to obtain life insurance is when somebody starts a family.
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Can a cancer patient get any life insurance?

It's tough for a person with cancer to buy a life insurance policy, though it's not impossible.
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Will Insurance Ever Cover a Cancer Test That Saves Money, Lives?

Will Insurance Ever Cover a Cancer Test That Saves Money, Lives? | Benefits & You | Scoop.it
A test that could curb deaths from the leading cancer killer is fighting for approval. (Will Insurance Ever Cover a Cancer Test That Saves Money, Lives?
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Is Life Insurance Necessary? How much you know about it? | All Infographics

Is Life Insurance Necessary? How much you know about it? | All Infographics | Benefits & You | Scoop.it
Infographics on Life Insurance whether its necessary or not and why everyone should make it on National Life Insurance Awareness Month of time and money...

Via Christino Martin
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Ordering the Combo: Life Insurance with Long-Term Care Benefits

Ordering the Combo: Life Insurance with Long-Term Care Benefits | Benefits & You | Scoop.it
New types of policies combine long-term care coverage with permanent life insurance, such as whole or universal life.
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Have Your Parents Planned for Long Term Care?

Have Your Parents Planned for Long Term Care? | Benefits & You | Scoop.it
As much as I don't like to admit it, my parents (while still young) aren't going to stop getting older. My dad will be 55 in a few months and my mom will turn 51 next year. It freaks me out a littl...
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5 Celebrities We Hope Had Disability Insurance

5 Celebrities We Hope Had Disability Insurance | Benefits & You | Scoop.it

Being a celebrity comes with a lot of cool stuff — money, mansions, private jets, a bazillion Twitter followers. Not included, however, is guaranteed immunity from accident or illness.

In fact, being a celebrity can sometimes be a dangerous occupation, what with all the movie stunts, the dramatic stage shows, the walking down red carpets in Louboutins. And if a star is sidelined, big paydays can quickly turn into big losses.

Here are five celebrities who might wish disability insurance had...

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Does Life Insurance Know If You Smoke? - 2013 InsuranceLibrary.com

Does Life Insurance Know If You Smoke? - 2013 InsuranceLibrary.com | Benefits & You | Scoop.it
Does Life Insurance Know If You Smoke? answered by a licensed insurance professional. Read the answer to this question and more. (#LifeInsurance Q&A: Does Life Insurance Know If You Smoke?
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Boston Bombing and Disability Insurance

Boston Bombing and Disability Insurance | Benefits & You | Scoop.it
Dzhokhar A. Tsarnaev was charged Monday with using a weapon of mass destruction against persons and property at the Boston Marathon, resulting in the death of three people and injuries to more than 200 people, the Department of Justice said.
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What To Do If You Can't Afford Your Whole Life Insurance Premiums - via insure.com

What To Do If You Can't Afford Your Whole Life Insurance Premiums  - via insure.com | Benefits & You | Scoop.it

By Ed Leefeldt, Insure.com - Last updated: Nov. 24, 2010

 

Philadelphia resident Mike Silverstein is semi-retired and, like many others, navigating his way through the never-ending recession. Facing hard times, he recently eyed the $50,000 whole life insurance policy on which he’d dutifully paid the premiums since his son was born 40 years ago. Why not let it lapse? Or better yet, cash it out?

 

On the surface, it might make sense. In bad times people pare down expenses by economizing on entertainment, keeping the old car running or even letting the house fall into foreclosure. So that whole life policy – the kind of insurance that builds cash value until you die and pays your beneficiaries the death benefit – could easily wind up in the throw-away pile. A nearly a third of us get by without any life insurance at all, according to the life insurance research organization LIMRA.

 

Americans are suffering financially, and Silverstein is among those feeling the pain. “I consider myself in the ‘post-asset generation,’” complains the 69-year-old. “I no longer own any stocks, bonds, mutual funds, real estate or even a car. I rent a room in a friend’s apartment and get by on money earned from a few odd jobs and Social Security.” But that doesn’t mean he’ll let go of the one asset he has left and, upon his death, intends to pass along to his son.

 

Hang onto whole life insurance

 

It’s a stubbornness that he shares with previous generations. In the 1900’s Irish immigrants would go without food in order to pay that $1 a month for life insurance, a theme of the classic A Tree Grows in Brooklyn. During the Great Depression, gritty films showed fathers trying to “accidently” kill themselves so their children would get their life insurance money.

Judging by recent figures, the current generation feels the same way. They are not cashing out their life insurance policies in order to access instant cash, according to annual statements from the National Association of Insurance Commissioners and National Underwriter data. Lapses in ordinary life insurance reached a high of 9 percent during the mini-recession of 2001-2002. But they were only a shade over 7 percent in 2008 and even dropped a percentage point in 2009.

 

A guaranteed investment

 

“The lapses weren’t as severe because it’s a guaranteed investment,” says economist Steve Weisbart of the Insurance Information Institute, who compiled the data.

During the long-running bull market, financial advisers often told clients to forgo whole life insurance in favor of term life insurance. In other words, pay only what’s needed to insure your life for a year and put the rest of your disposable income into stocks. But when the stock market tumbled 50 percent in 2007, whole life insurance policies, based on conservative investments like U.S. Treasuries, began to look a lot better. The death benefit of a whole life policy transfers tax-free to the next generation, a big reason why it is favored by the wealthy. Whole life insurance is a sure thing in a world of uncertainty: It will pay off as long as you pay the premiums.

 

Strategic life insurance alternatives

 

But what if you’re having trouble making your premium payments? American Council of Life Insurers spokesperson Steven Brostoff says there are several options. Each, however, should be evaluated depending on your individual circumstances.

Reduce the face amount to paid up status if there’s cash value in the policy.

“Reduced paid up” is a fairly standard option in life insurance contracts. But, like your original purchase decision, Brostoff says this should take into account your insurance needs in the future.

 

Exchange the life insurance policy’s cash value for an annuity to eliminate premium payments.

 

The exchange is tax-free, making this an attractive option. But the annuity should have a guaranteed rate of return with either a fixed interest rate or a preset level if the stock market declines.

Switch to term life by using the whole life insurance policy’s surrender value.

If you know you want out of your whole life policy but you still need life insurance, you could cancel your whole policy and use the surrender value to buy a small term life policy. You’ll be re-underwritten for the term life insurance policy, so it may not be a good move if you’ve had health issues.

 

Borrow from yourself by taking out a loan against the cash in your insurance policy.

 

Policy loans are certainly available, says Brostoff, and the loans can be used to pay premiums.

Since the life insurance company bears no risk on your loan, rates are usually reasonable. This seems to be what most people are doing. Policy loans rose to $14 billion in the first quarter of this year, up from $10 billion during the 2001 recession, according to Weisbart.

 

Have your cake and eat it too

 

No one needs to be told that it’s tough to get a bank loan these days, or that tapping credit cards at 18 percent interest or more is not a good idea. But a quick mathematical review of his policy showed Silverstein a more palatable solution: He could have his cake and eat it too.

 

Silverstein plans to take out a loan on his life insurance policy at a 6 percent interest rate and use the yearly dividend he gets from the policy to pay the interest on the loan. In other words, borrow from Mike to pay Mike. So while he won’t add to the cash value inside the insurance policy, he will keep the policy intact as a small but important inheritance for his son.

 

Martin Jefferson's insight:

  A great read on a subject we rarely discuss openly.

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Are Annuities Sheltered From Creditors?

Are Annuities Sheltered From Creditors? | Benefits & You | Scoop.it
When financial hardship and bankruptcy hit, debtors find themselves in danger of losing most of their assets.
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How Much Life Insurance Do You Need? - U.S. News & World Report (blog)

How Much Life Insurance Do You Need? - U.S. News & World Report (blog) | Benefits & You | Scoop.it
How Much Life Insurance Do You Need?
U.S. News & World Report (blog)
If you've opted to create to a life insurance plan and have already selected a life insurance agent to work with, you'll have to determine how much coverage you actually need.
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Term Life Insurance – The Advantages & Disadvantages

 Term life insurance, like other forms of life insurance, has its advantages and disadvantages.
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Does income protection have an image problem? - FTAdviser.com

Does income protection have an image problem? - FTAdviser.com | Benefits & You | Scoop.it
Cirencester Friendly sales and marketing director says anecdotal evidence points to commission draw. (RT @RachaelGoldIFA: Does income protection have an image problem?
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