Capital Needs Analysis

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 Products
It 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