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Capital Needs Analysis - Do I need Insurance?
• Am I single or do I have a family?• Do I need additional health insurance?• Do I need long term care insurance?• Do I need additional disability insurance beyond short-term and long-term? (i.e., specific to profession).• Medicare A vs B vs D(Medicare does not cover Long Term care).• Medicaid (Often you do not qualify for Medicaid if you have assets or income supplements).• PPACA (Patient Protection and Affordable Care Act) aka “Obamacare”.
Insurance ProductsIt is important to know the difference between the many types of insurance products offered on the market.
• Term Life – Life insurance coverage based on the duration of years specified in the contract. No cash value.• Whole Life – Cash value guaranteed.• Universal Life (UL) – Flexible premiums. Cash account grows according to current annual rate based on market conditions with a guaranteed minimum contract rate. • Variable Life (VL) – Flexible and level premiums available. A separate account follows the general market, an index, or a mix of subaccounts. Guaranteed minimum death benefit. Cash value is not guaranteed.• Variable Universal Life (VUL) - Flexible premiums. 100% of cash value is invested in the separate account and is not guaranteed. Death benefit is not guaranteed.
The above products may or may not have an appropriate place as a part of your overall plan. Not all products are suitable or necessary for every investor and should be considered carefully. Annuities Tax deferred insurance products that offer either a fixed rate of return or a rate of return tied to the stock market. • Fixed Annuities - This policy type offers a fixed rate of return and is not tied to the stock market.• Index Annuities - This policy type allows limited participation in the gains of an index while providing protection of the principal.
• Variable Annuities - Compared to a fixed annuity, variable annuities reduce inflation risk associated with a fixed annuity. They also increase the market risk not associated with a fixed annuity. They invest in subaccounts rather than depending on an insurance companies fixed rate. Instead of the insurance company bearing the risk, investors bear all risk for variable annuities. A careful suitability analysis should be conducted for your specific situation before considering investing in and purchasing a variable annuity. Always review all policies, contracts, prospectuses, or brochures before purchasing any insurance policy or contract.
Please contact Doleman Wealth Management, LLC, for more details.
*please see below for important disclosure