Answers in Insurance

Hi Toni, All good answers above. Remember, every dollar you place somewhere has a cost associated with it, nothing is free. You used the word "sell," everything is for sale, the real question is what is it you want to buy and for what reason are you making the commitment. Your personal commitment to your future is what you need to think about. Once you have that outlined, then plan with the appropriate financial products that will get you there, with an advisor who is on YOUR team to guide you toward your accomplishments.

It all depends on what investment is being referred to. Whether it's an annuity or life insurance or any other type of investment there are always fees and commissions generated, either directly or indirectly. The question here that needs to be asked of your advisor is; if he/she is an insurance agent, a broker, or a Series 65 licensed investment advisor with a fiduciary obligation. The next question that should be asked; is how he/she is compensated, commission or fees, or a combination of both. The next question would be; who pays those commissions and fees to the said advisor, is it the financial institution or the consumer? Regardless, commissions and fees will be paid either directly or indirectly. In my opinion, you should always work with a firm like mine that has a fiduciary obligation to the consumer.

The best way and simplest way to ascertain the total amount of life insurance coverage you need can be based on your debts, replacement income for surviving spouse, and funding of kids education. In my 20 years the most effective financial planning tool that I have used is the FINANCIAL NEEDS ANALYSIS QUESTIONAIRRE to come up with the best possible answer on how much life insurance to own.

While all the above answers are excellent, many companies, after seeing the true cost of long term care, have changed the way their contracts are written. More often than not , of late, I'm seeing policies that are tied to a "bucket of money" benefit. You still choose a daily, weekly, or monthly benefit, and it should cover in-home as well as facility charges. But, instead of just having a "number of years" benefit, the contracts would be based on a "maximum charges" benefit. I'd definitely find a local Financial Advisor who is licensed and experienced with Long Term Care. The industry is changing, and you need to find someone who you can trust in making these decisions. Rod Miller, CFP, CLU, ChFC

Hi Harrison! Long-term care presents such a challenge - there is no one best answer. Each advisor here has a good perspective on the questions to ask factors to consider. My initial advice is to take care of your health now. Change to a low-sodium diet with little processed food, drink lots of water, and exercise. Here's the downside of that: if you have a healthy body and need long-term care for dementia, you may outlive your policy coverage or amounts. It's a catch-22 with a complex product, so be sure to consult with an expert.

I recommend:

1) Three years of coverage. 2) Researching the average per day cost in your area. The annual average is about $200 per day. 3) Inflation protection 3-5% every year. The higher the better. 4) A comprehensive plan that covers home care, assisted living, and nursing home.

Tanya, While all of the answers you've been given are theoretically correct, the one and only answer that's correct in all situations is... IT DEPENDS. It depends on your financial situation as well as your goals and objectives. The second part of my answer is a recommendation to work with an insurance agent or financial advisor who will take the time to understand your individual situation, needs and objectives before making any recommendation. Life insurance can be used for income and lifestyle protection, investment purposes, college funding or to provide liquidity to pay estate taxes. The key is for you and your agent/advisor to determine and prioritize your needs and objectives and then determine whether it makes sense for one or both spouses to purchase life insurance. Beware of agents who try to force "one size fits all" beliefs on you or try to sell you expensive insurance products. Too many will try to sell you an expensive whole life policy when all you might need is less expensive term coverage. Make sure you understand what you are buying and why. I hope this helps.

It depends on the reason you are looking for life insurance to begin with. If you are young and have a family to protect, buying a term policy will give you the highest amount of insurance for the lowest premium. On the other hand if you’re looking for a policy that will last you for the rest of your life, you should be looking at a permanent one – universal life or whole life.

By basic disability, I’m assuming you meant short term disability. Those policies are covering you for up to six months. If this is the case my recommendation is to add an additional long term policy that will cover you after that period.

At your age and health condition you can find a good policy with a low premium that will stay level. Remember, you are protecting your future income “just in case.”

Ask yourself this: should you by only the very basic automobile insurance, or should you cover your car for liability too? The risk of becoming disabled later on is greater than totaling your car and having a major liability case with it.

Hi Tanya! Women are often interested in feeling secure, so having life insurance on the husband is desirable. Many men are comfortable with a more risk and they feel like they would be OK financially without insurance on the wife. I like to think of life insurance as protection for the whole family in case you die too early. In what ways would you want your family protected if you were not there to do it yourself? Many would at least want them to maintain the same standard of living that they currently enjoy. Thinking about how your absence would affect the day-to-day activities, as well as future plans for your kids can help you determine the right amount of coverage.

The best way to think about this is that you’re trying to replace your net income in the unfortunate case in which you become disabled.

There are two types of disability policies. Short term that covers you up to 6 months, and a long term one that can be until you reach full retirement age

The correct age is when you start your retirement planning. You will realize that health care costs are enormous. The figure used in calculating the amount of assets required to fund long term care is $230,000. Once you review your assets and projected income at retirment you have to decide if you want to insure all of the $230,000 or portion of it. If you are in the "I can't fund any of it from my assets or income" group; then the sooner you seek coverage the better; as the cost of waiting is always higher when you get around to it.

Life Insurance isn't just for dying, this is the byproduct of financial entertainers leading the discussion on life insurance. True financial planners look beyond the dying aspect. It is useful during your lifetime if you become disabled, send children to school, supplement retirement income, philanthropy or leave a legacy to family, charity or educational instution, church or support your core value when you pass away or wish to provide this during your lifetime. Work with an adviser that will give you the complete picture on how to obtain a rich and full personal and financial life.