- Image by Marionzetta via Flickr
I am keeping my insurance agent hat on today so I can talk about two different types of policies of which your average American should be aware. While insurance is as dull as dishwater to some, to me it is exciting because of the potential benefits that can happen for you and I, the end user.
I thought I’d talk life insurance out of the gate. Why life insurance out of gate you may ask. Because in case of death the bank pays you what you have saved, and the life insurance company pays you what you meant to save.
No matter how much money you accrue in real estate, stock market, or any other type of investing, life insurance is still the only product that offers tax free dollars. You can look that fact up in the IRS Code for verification. Truth is, trusts and other asset protecting documents generally use annuities or life insurance policies to keep the dollars safe from the taxman and other predators.
Note: I understand the trick of borrowing against equity. While it is a great strategy, it falls far short of the insurance strategies.
It is not my intent to discuss all of the Code’s nuances. Consult with competent tax/legal/trust professionals for those.
A Policy You May Want To Consider
Not all life insurance companies offer this brand of universal life but it is still widely available. The industry name is single premium universal life (SPUL). The type of SPUL you should consider offers you several protections. First, of course, is the insurance benefit. Second, and this may surprise you, is a convertibility to a long term care policy and is also income tax free.
Americans are getting older by the day and long term care costs are skyrocketing. In some areas, the costs are upwards to $70,000.00 a year for long term care. This fact alone makes this policy a super idea.
Third, a return of premium guarantee with no questions asked. The specific policy I have in mind comes with these three benefits should anyone desire proof of product.
I don’t want to sound like an insurance salesman so I’ll leave what I just said on the table for you to research should you think you have a need for this product. By the way, most of these policies require a minimum premium of $25,000.00. This type of policy can also be beneficial for those you recently took a reverse mortgage. Just a last minute thought.
Health Insurance.
This is the second type of policy I believe people should consider. I already know how expensive health insurance is as well as how sometimes insurance companies screw the policy holders. Been there, done that so I will step over that issue.
If you don’t think health insurance is a concern, your president thinks it is a big concern. He is trying to implement a plan that will, to say the least, change the health insurance landscape forever. This post isn’t about the good or the bad of his plan. It hasn’t passed yet so discussions are pretty much moot.
To give you an idea of the type of health care we have in the United States, visit: http://www.hoover.org/publications/digest/49525427.html for a perspective on our care versus the rest of the world’s health care. There is a policy called guaranteed issue helath insurance. This policy is a limited pay policy and not a major medical policy.
People currently uninsured are prime candidates for this type of policy. It is less expensive, in most cases, than major medical insurance. Most of these policies even include maternity benefits at no extra charge where major med policies charge an additional premium for maternity coverage. This isn’t the sole reason to consider this policy but for some of my clients it was. I’m simply including this particular benefit FYI.
It isn’t my intent to talk you into buying insurance. It is my intent to get you to think about your needs and products that may fill those needs.
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Tom KoziolTom has written 73 articles for us.
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{ 5 comments… read them below or add one }
Yes it is hard to find affordable life insurance particularly for senior like me, But by implementing smart shopping, I think this problem can be solved. Thanks for sharing
The purpose of the post was to get people thinking about something I think is a necessity. But, then again, I sell the stuff so I would. On the other hand, when you see a beneficiary receive a six figure check that helps him/her pay off the mortgage you kinda feel good being in the biz.
I used to sell health and life insurance. This is so true: “Because in case of death the bank pays you what you have saved, and the life insurance company pays you what you meant to save.”
Thanks for your contribution to Take Charge of Your Health Care Carnival.
Helene´s last blog ..AmeriPlan Half Price Discount Dental & Medical Benefit Plans
I don’t know what to make of the public option talk at this point. Both Obama and Republicans tout health care studies that seem to contradict each other. American people will soon get to see for themselves if this bill makes any kind of a difference. If it so happens that our deficits are brought down and the plan helps to insure the millions without coverage, more power to the Obama administration!
Either way I still believe people should always have access to private health insurance. This is America.
Jeremy´s last blog ..Public Insurance Option Choices Being Developed
My friend sent me to this site:
http://www.smallbill.org.
If you read their proposal, you’ll see how we can have a health plan for almost everyone. And, at the same time, not spend anywhere near 1.2 TRILLION dollars. BTW, the latest estimates out of the CBO are that only about 2% of the presently uninsured will actually be insured under the Pelosi/Reid horse crap they are parading under our nose.