"There are only 2 ways to create income... People at work, and Money at Work."
If an accident or serious illness keeps you from working for several months or longer, where would your income come from? How would you pay your monthly bills? Disability Income insurance is designed to provide you with needed income, right when it is needed. See below for expanded information related to disability coverage, or click HERE.
I have many years of experience with IRAs for individuals (both Roth and Traditional IRAs available), and various plans for businesses, like 401k. If you are saving for retirement, or already retired, I may be able to help you. See the retirement section below for additional information on this topic by clicking HERE.
Supplement your retirement income planning using these products, which can offer tax advantages. Annuities can help you ACCUMULATE dollars for retirement, HOLD dollars for retirement, and DISTRIBUTE dollars in retirement. For more in depth discussion of Annuities, click HERE.
Someday we will likely NOT be able to take care of ourselves. Care at home, in assisted living facilities, or nursing homes can be expensive. Find out more by clicking HERE.
If you own a business, I may be able to help you attract, retain, and reward valuable employees.... including yourself! Self employed people, in particular, need to plan ahead. For additional information, click HERE.
Scroll down for more information on all of the above topics.
(Just enter your state of residence, your date of birth and other information to see prices from many of my companies. These prices are estimates only. We won't know for sure what your rate would be until you apply for coverage. But, here you can get an idea of costs for coverage for just about any time period you desire. Please contact me to get a more accurate idea of coverage costs for your actual age and status... at no cost or obligation. If you want me to shop the market for you, go to my Request a Quote section at top right of this page, and give me the information shown.)
The primary purpose of personal life insurance is to offset the loss of income when a breadwinner passes away, and most people will need help in choosing the right amount and right type. You may have a considerable amount already, perhaps through an employer group plan or privately owned.
But, how much is the right amount? Perhaps the best way to look at that is "how many years would your loved ones need your income, or a large percentage of it, if you died tomorrow"?
For example, many experts recommend that you consider leaving your family with about 70% of pre-death income. I can show you how to do that for whatever time period you decide (ex. 10 years, 20 years, or lifetime).
For the best type of policy, you should consider "how long do I plan to keep this coverage?" That will help you determine the right type, because different policies have different level premium periods.
There are generally 2 types of life insurance: Term Life and Permanent Life. Permanent is designed to be coverage you can "keep until the day you die", and having a premium level sufficient to keep the policy coverage for a long period of time (ie. lifetime). Term is designed to have a level premium for a shorter period of time (10-20-30 years). For example, one of the most popular plans purchased today is called "20 Year Term". It is called that because the death benefit, and the premiums, are guaranteed to remain level for 20 years. But after that, the premium can zoom upwards, and become unaffordable for most people.
So, Term Life is designed to last for a "term period of time" (10, 20, 30 years), and Permanent Life is designed to keep much longer, usually after retirement for a lifetime. So, if you want coverage for a temporary time period, Term Life is great for that. And, if you want some to keep "forever", or say until some later age (65, 75, 85, etc), that's what Permanent is designed for, hence the name. For example, if you want to have coverage for "Final Expenses" (funeral costs, legal fees, taxes, etc), and you expect to live a normal life expectancy, that would need to be some form of Permanent life insurance. In summary, the longer you want to keep coverage, and the longer the premium is level, the higher the cost on the front end.
Some types of Life policies can help you serve other needs, such as saving for college funding, supplementing retirement income, or protecting against risks involving critical and chronic illnesses. So, you don't necessarily "have to die" to benefit from owning life insurance. For more information on this type, please contact me.
Many people find out that they need some of both kinds (Term and Permanent) to satisfy their needs. For example, many clients that I talk to decide to have some coverage they can keep for a lifetime at a level premium, and then a larger amount to keep for a shorter period of time.... until the "kids get grown, the house is paid for", etc. This would be done using both kinds of life insurance, Term Life for the temporary need, and Permanent Life of some kind for the long term need. So, knowing how long you plan on keeping a policy is very important, and I can help you with various types, depending on your needs. (For a more in-depth discussion on the "best type" of life insurance, check out My Blog section at the bottom of the Helpful Info page above.)
BUSINESS USES FOR LIFE INSURANCE
There are also many Business uses for life insurance, such as:
Give me a call if you would like to discuss how to use life insurance in your business. (For more information on insurance uses in business, click Helpful Info here, or on the tab at the top of this page. Then click on the guide to "Protecting Your Business". There you can print or download the handy guide.)
ESTATE PLANNING ISSUES AND LIFE INSURANCE
The estate tax rules for large estates have changed many times over the years, and you should seek professional advice in all such matters. Should your accountant or other advisor find that you have an estate tax liability, it is likely that Life Insurance will be the most efficient manner to address that need. There are specific types of life insurance that fit well with funding estate tax needs, including "survivorship life insurance", also known as "Second to Die" coverage. Please call if you would like to discuss.
Note: When you ask me for a life insurance quote, I can shop all of my 20+ companies to see who might offer the best value. But price alone is not necessarily the best way to judge "value". Who should "own" your policy? How should beneficiaries be listed? Are there any discounts available? That's where a knowledgeable agent can really help. If interested in more information on the types of life insurance and their uses, email me and I will send you my newsletter with more information.
Click HERE for more information on Life Insurance*.
"How much is right for you?" Click HERE for a handy Needs Calculator, provided by *Life Happens, a nonprofit organization established to help you with your insurance questions.
Watch a 30 second video on the importance of Life Insurance.
Please Note: Term Life may or may not be the type that I would recommend to you, depending on your situation. But getting a sample quote can give you an idea of possible costs for various plans. Most people overestimate what the cost will be. You will probably need my help to determine the most likely risk class that you would actually qualify for. Discounts are available for people with excellent health history, and preferred status.
No coverage is inforce until you have been approved by the company, met issue requirements, and paid the required premium.
As I mentioned before, the most valuable financial asset that most of us have is our "ability to earn a living and create income". If that is taken away by accident or illness, disability income insurance can provide replacement of a big part of that income. And, benefits can generally be tax free, unless an employer pays the premium for you.
"Isn't major medical insurance enough?"...You may have great major medical coverage, and I certainly hope you do. But that coverage is designed to pay your doctor and hospital bills. Who is going to pay YOUR monthly bills?... the house note or rent, utilities, groceries, car note, etc. That's what disability income insurance is designed to help you do. Disability does not have to last a lifetime to cause hardship. Most disabilities only last a year or two... but think about that, would that cause a financial hardship for you?
What's the risk? According to actuarial studies, you have about a 30% chance of having a disability that lasts at least 90 days during your working career**. About 48% of mortgage foreclosures are the result of disability, which is about 16 times the risk that death will cause you to lose your home**. Is that a risk you can afford to ignore?
Disability income insurance can be designed to fit whatever you need it to. Some plans have premiums that are guaranteed to never increase, depending on your occupation and need. If you work for an employer, you may have some disability coverage at work. But often, it won't be enough to replace your bring home pay. And if premiums are paid by the employer, the benefits could be taxable, which further minimizes the benefit paid.
Would it cause a problem for you if you were out of work for a year, or more? In almost everyone's situation, it would. Would your employer continue to pay you? Maybe, if it was a work-related disability, Workers Compensation would provide benefits. But if not, unless there is some type of disability insurance in place, you may have lost your most valuable financial asset. This is something that we ALL need to be aware of.
Business uses for Disability Income Insurance
Click HERE for more information about Disability Income*.
* Source: www.LifeHappens.org
** Source: LifeHappens Survey "What do you know about Disability Insurance?"- 2018, and the Savings and Loan League
Planning for retirement is also an area where you may have questions. Most people in retirement, or nearing retirement, say their 2 biggest fears are affordable healthcare and "outliving their money". If that sounds like you, I may be able to help.
Healthcare Plans... I offer Medicare Supplement health plans, as well as Long Term Care coverage. (Visit www.Medicare.gov for more info on health coverage for retirees. You can also review the very limited coverage for Long Term Care thru the Medicare program. This is a government site, not related to mine.)
Income is extremely important to retirees, and I believe that I can help you organize your assets to maximize that income. I make products available that can provide guaranteed income to you to supplement any pension or other income you may be expecting, including Social Security.
So, if want to supplement your savings for retirement, OR if you are already retired and wanting to review your healthcare and income needs, I want to help.
(One of the most important things you can do in planning your retirement, if you haven't done so yet, is to get a free estimate of your Social Security retirement benefit. The SS Administration has a calculator on their website to do just that. To go to that calculator now, just click HERE. Other great information is available from the SS Adm. regular website, and the Medicare website (see below). If you are in retirement, or near retirement, you will find both of these invaluable. So, become familiar with them. These are the actual government website links below, not affiliated with my website.)
Generally, an annuity is a contract between a customer and an insurance company designed to either accumulate values at interest, or distribute the value over a period of time selected by the customer (such as your lifetime)...or both. Generally, the interest earnings / growth is tax-deferred until withdrawals are made.
Annuities are only sold by insurance companies, through agents with proper licensing.
It depends on the type of annuity, but generally "fixed" annuities have a minimum guaranteed return in addition to any current rate that may be paid. Among the types of fixed annuities are "multi-year guaranteed annuities" (aka MYGAs), and indexed annuities. MYGAs guarantee a rate for a period of years (such as 3 to 10 years), but never pay less than the contract minimum (usually 1% to 2%, for example) after the initial guaranteed rate period. You have access to a certain percentage of the value during the guaranteed interest period, and then at the end of that period most plans allows you access to 100% of the money, if desired. This fits well for many people, especially those with conservative investing in mind. Indexed annuities pay an interest rate that is linked to some outside index, usually tied to the stock market, but not invested in the stock market. There is another type of annuity whose return is based on the stock market, and that type generally involves risk of loss of principal. So, be sure you know what you are buying, and if it fits your situation. Consult a reputable agent who will work to make sure any product is suitable for your goals, and who recommends companies that are financially stable. Guarantees are based on the claims-paying ability of the insurer. Be sure to read all product disclosures which will explain any fees, expenses, and/or charges that may be involved.
Today, many people are looking for safe and conservative alternatives for their long term money. Annuities can help with accumulating dollars over the years, as well as distributing those dollars in an efficient manner at retirement, helping to provide income for a lifetime.
Perhaps you have some money that is not working hard enough for you, or is subject to excessive risk. There are annuity options that might improve your value, and/or give you a higher level of safety. There are several types of annuities, and some have guarantees* associated with them, and others are subject to substantial risk of principal.
You can have an annuity that is designed to hold your money for many years until it is needed (these types are called Deferred Annuities), and have tax-deferred interest earnings. That means you don't pay income tax year to year as with many vehicles, you pay tax AS YOU DECIDE TO MAKE WITHDRAWALS of money from the annuity. Or, there is also another type that turns a lump sum into a steady stream of income (generally called an Immediate Annuity). This income can pay you for a fixed period of time (say, 10 or 20 years), or for a lifetime, depending on the options you choose.
So, fixed annuities can be used as a place to hold some of your money for a future date (deferred annuity) while earning competitive interest rates, or can turn a lump sum of cash into an income stream, like a personal pension benefit. It is an option for your retirement funds rather than just choosing typical conservative vehicles or those involving more risk*.
There are also survivor and beneficiary options, so contact me if you have questions about this. I will be happy to explain the differences between the products, and should you and I determine that an annuity could benefit you, I will only recommend those that I believe are most suitable for your situation.
For more information on Annuities, go to my "Helpful Info" tab at the top of this page, and then click on the Annuity Information Guide in the Helpful Guide list shown there.
* Guarantees mentioned on this site come from the issuing insurance company, and are based on their claims-paying ability. See a product guide for any details, associated risks, and charges associated with fixed annuities, and any prospectus required with "variable annuities". Check out any company that your advisor may recommend for strength and stability. We do NOT give legal, tax, or accounting advice.
Many people mistakenly think that "long term care" is synonymous with nursing home care. But that's just one of the settings where such care occurs. In fact, most of this care is delivered at home by home care aides or others, and the costs are still substantial. In Tennessee, for example, home care aides can cost an average of about $18 an hour (click HERE to view a map of average costs around the country, from the LifeHappens.org website). Obviously, care in a nursing home is much higher.
Almost 70% of us will need help taking care of ourselves at some point in the future, according to a recent study*. Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, do NOT pay for long-term "custodial care"**.
About 5.5 million Americans are currently being treated for Alzheimer's disease, one of the major causes of the need for care. That's about 1 in 10 people over age 65 today, and those numbers are expected to increase***.
Long Term Care (LTC) insurance can be designed to help pay for those costs, whether it occurs at home, in assisted living facilities, or in a nursing home. Policies written years ago may not be as comprehensive, and some only cover nursing home care. Most of us want to stay "at home" for as long as possible, and that takes some planning.
LTC insurance is designed to pay benefits when you are unable to perform at least 2 out of 6 of the typical "activities of daily living" (ADLs). These include walking, bathing, dressing yourself, toileting, transferring, and feeding yourself. It can happen at any age, and in fact, about 40% of people needing such assistance today are under age 65.
There can be a huge difference between plans, so be sure you carefully study what your needs are. Today, there are traditional LTC insurance plans, combination plans, and hybrid plans. Each has its pros and cons, but don't choose the first one you see. Shop around, and find an advisor who knows the market, perhaps represents more than one company, and has the proper licensing. Most states require specific continuing education to sell LTC insurance, and I am up to date on these requirements.
In any case, the good news is people today are living longer because of medical advances. The bad news is, the longer one lives, the more likely we will need care at some point.
Click HERE for more information about Long Term Care insurance.
To view a short video on "Costs and How to Pay", click here. This will take you to the video on the U.S. Dept. of Health and Human Services website (not affiliated with my website).
* Source: Dept. of HHS, https://www.longtermcare.gov
** Source: 2018 Medicare & You, Centers for Medicare & Medicaid Services
*** Source: 2017 Alzheimer's Association ( www.alz.org )
Employers are looking for ways to attract and retain quality employees. Providing benefits can be an excellent way to do that. Employers can be a tremendous help to employees in providing financial security to them and their families, both through employer-paid benefits and/or through voluntary payroll deduction plans. For example, I can assist with:
If you are a business owner, this can also include executive benefits, and business continuation planning. For example:
These are the types of concepts where I may be able to assist you.
To review typical insurance planning subjects for businessowners, click HERE to go to my Helpful Info page, where you'll have the option to download a handy Guide on Protecting Your Business, if you wish.
I focus my insurance practice on protecting what I consider to be "your most valuable financial asset", your income. I do not offer property and casualty coverage (ex. home & auto), but if you are shopping for that type of insurance, I may be able to refer you to a licensed, capable agent in your area. Just give me your zip code, and I'll look up members of our professional association, NAIFA, in your area, and send you contact info for 3 or so.
I do offer some additional supplemental insurance products (cancer expense, critical illness, accidental death, etc.). In any case, if you have questions about a product or service not mentioned above, feel free to contact me. With decades of experience, I may be able to help.
Need a Speaker for your event?..... I have spoken to consumer and agent groups all over the Mid South on insurance and related topics. I would be happy to speak to your club, church, or other group on financial security topics. Just contact me for more information.
Interested in my Newsletter? If you would like to receive a copy of my quarterly newsletter related to financial security topics, send your email address to me at Wayne@InsuredPaychecks.com, and just ask to be added to my list.
If you have any questions at all, please email me at the address above, or call me 901-488-1399.
"There are only 2 ways to create income...People at Work, and Money at Work."
To me, it is simply common sense. If you agree with most folks that it makes sense to insure your home, your car, your jewelry, and other hard assets, doesn't it make sense to insure THE asset that MAKES ALL THOSE OTHER ASSETS POSSIBLE? ... and that is your income.
Unless you are independently wealthy, everything you own and hope to own depends on your income. If something were to happen to you, your loved ones' ability to "remain in their own world", is also dependent on income. If you are retired, or hope to be someday, your income will play a big part in your feeling of security, and therefore your happiness. So, isn't it worth doing some planning to make sure you and your loved ones will have the income needed?
Many people today have life and disability insurance, but they don't have a real sense of knowing how it fits into their overall financial security picture. That means they could have more than needed, or not enough, or have the wrong type to do the job they intended, or WORSE not have this asset insured at all!
Question... should a $200,000 house be insured for $50,000? I assume that, whatever your home is worth, that's what you have it insured for? That's how you should look at your "paycheck/income insurance", too.
Wouldn't it help you to have a method to determine how much income protection you need? You may have too much, too little, or about the right amount to do the job, but how do you know? I have developed some simple ways to help you determine the "right amount" of income protection for you based on an analysis of your particular situation.
Consider this: If you had a big "Money Machine", and every week it cranked out a $1,000 or more in cold hard cash legally, would you insure it? I bet you would! How would you determine how much to insure it for?
Well, you DO have a Money Machine...it is YOU! Someone starting out in their career at age 25 or so today can expect to make millions of dollars before they retire! That is their "financial value" to their families, and you can bet that is what a good attorney would sue for in a "wrongful death" lawsuit should they be killed in an accident.
That doesn't mean that you necessarily need that much coverage for death or disability to provide a reasonable income to your beneficiaries, or yourself. But it should help you realize what an accident, illness, or sudden death would take away from you, and your loved ones.
And don't forget, income from both spouses should be considered. Most families today rely on two incomes. All income coming into the household should be insured, when possible.
As you get older, and income tends to go up before you retire, the risk of health issues and even death also increases. You should review your "income insurance" on a regular basis, especially when "life events" occur, such as marriage, childbirth, change of job, change of income, business purchase, etc.
Like ALL insurance, you can't wait until you need "income insurance" to get it, it must be bought when the need is not apparent to you. You and your family, and maybe your business (if applicable), depend on YOU being able to do get out the door each day, and make a living. Right? Get needed coverage inforce BEFORE it is needed, or you may not qualify for it!
Many people today own small businesses, maybe even operated from their homes. They are particularly vulnerable to loss of income because they probably don't have any "employer sponsored" benefits as a basic package of protection. They simply must make provisions for protection of their families and businesses themselves. No one else will do it for you.
Retirement? Studies show that most retirees have 2 BIG concerns:
- lifelong healthcare, and
- outliving their money.
I have decades of experience in protecting both of those concerns.
Income... it's pretty important, isn't it? As I have said before, it is probably the MOST important financial asset that you have. It is what gives you the ability to have all of your other assets.
And there are basically only 2 ways to create income... People at Work, and Money at Work.
This is what I do for a living.....help people like you determine if income lost by any means would cause a hardship, and how to protect against that. There is no doubt in my mind, as long as you have the "ability" to provide for yourself and loved ones, you will do so. My job is to help protect against those times when you lose that ability.
Perhaps you can benefit from my experience. There is no cost or obligation to review your needs, so why don't we spend half an hour together, by phone or in person. You can determine whether or not you want me to work for you. I look forward to speaking with you. And, thank you for your time.
Wayne McCullough, LUTCF
cell #: 901-488-1399