Solo Retirement planning / Long Term Care

Posted on February 20, 2014 by

Things to think about when planning for a single retirement. 

Most retirement planning literature portrays a retirement transition in the context of a couple or a family – but what about those who retire alone? What particular challenges do they face, and how must their preparation for retirement differ?

 

Retiring alone presents unique challenges. Singles who retire may lack a spousal and familial support network other retirees count on. If a lone retiree faces sizable medical bills, he or she can’t draw on the financial resources of a spouse. Unmarried, childless retirees also lack adult sons and daughters who might be able to offer them financial help or serve as executors of their estates one day.

 

Singles must plan ahead for them. The earlier, the better: if you anticipate a solo retirement, it might be very wise to plan for it decades in advance.

 

A basic financial truth can’t be dismissed: single retirees will need to amass savings comparable to those of a retired couple.

 

Why? It is because many retirement costs are fixed. Hospitals, universities, banks, pharmacies, mechanics and home improvement specialists do not offer discounts to single parents or lone retirees. Usually, a couple can absorb these costs more effectively than an individual.

 

Some steps to consider. Those looking at the possibility of a solo retirement may want to think about these factors…

 

The need to save early & consistently. Sometimes young singles are bad with credit, or spend whole paychecks without regard to putting anything away. You are different, right? Think about increasing your savings rate. It is possible: look at how much parents save for their kids’ tuition, food, clothing and child care, in the face of economic pressures that may exceed your own.

 

The possibility of building wealth through real estate. Astute real estate investment may provide a single individual with a place to live, a steady income stream and the equity to pad retirement savings.

 

The possible need for long-term care coverage. According to NPR, only about 8 million of 313 million Americans have any long-term care insurance. The average private room accommodation in a nursing home is currently $87,000 a year. The 2012 Long-Term Care Insurance Price Index of the American Association for Long-Term Care Insurance (AALTCI) estimates that a single 55-year-old would pay an average of $1,720 a year for LTCI with an immediate value of $170,000 and a value of $354,000 at age 80 – a purchase that may very well be worth it given trends in American longevity. Many people investigate buying LTCI as they turn 50; you may want to take a look at it in your forties.1

 

The value of a social circle. “Family” has many different definitions today – and increasingly, single retirees are creating family-like bonds by moving in with one another, and saving household expenses as well. This can be good for the soul, and some solo retirees with few or no living relatives go so far as to assign power of attorney to a close friend in case of emergency.

 

What if you are divorcing without kids? A divorce earlier in life is often more bearable financially than a divorce later in life. In the financial aftermath of divorce, the key is whether the settlement reached is truly equitable. Not equal – equitable. While assets may be divided equally, the lesser-earning spouse may be left with less income and less potential to accumulate wealth in the future. (This is often the case if one spouse has helped the other build a business or a professional practice.) An equitable settlement considers and addresses these factors, especially in view of retirement savings needs.

 

These are all crucial factors to think about if you find yourself thinking that you may retire alone. Contemplate them, and consider planning accordingly.

 

S. Brett Anderson may be reached at (832) 230-1896 or banderson@allsureinsruance.com.

www.allsureinsurance.com

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – www.npr.org/2012/05/08/151970188/long-term-care-insurance-who-needs-it [5/8/12]

Posted in Texas Life and Health Insurance | 0 Comment

Texas Life Insurance Strategies

Posted on February 20, 2014 by

Why might the wealthy be directing more money into this middle-class bedrock?

For generations, American citizens have thought of life insurance as a midlife acquisition of the middle class. Today, that perception is less correct.

Wealthier Americans seem to be purchasing more life insurance. These individuals are recognizing what it may help to accomplish for their families and their corporations. They see the twofold taxation benefit offered by full life and universal life policies – the death benefit goes untaxed, and the policy has a chance to accumulate money value thru a tax-deferred savings or investment account.

As tax levels may rise before the end of the decade, money value life insurance may seem increasingly fascinating to those in the top tax brackets.

Here is some recent history to mull over:

 

  • 1. In 2007, a striking 55% of tax free investment gains universal life and whole life policies belonged to the wealthiest 10% of U.S. Families. In reality 22% of these assets belonged to the wealthiest 1% of American families. (That information comes from the Fed.)
  • In that same year, the life insurance industry research group LIMRA conducted a survey for the Wall Street Journal. It found that policies for $2 million and more made up almost 40% of the face price of entire life and universal life policies sold that year. In 1997, large policies made up just 10% of the life assurance market; in 1987, they made up 1% of it.
  • Prudential Financial Inc. Announces 31% of its life assurance policy sales in 2009 were made to homes with investable assets of more than $250,000. In 1999, that demographic accounted for just 19% of its life insurance polices in force.1

 

When you consider that households with changed gross incomes above $250,000 face a 0.9% income tax increase and a new 3.8% investment tax in 2013, you have one more factor that may make a contribution to the trend.2

An option to think about. Here in Texas, plenty of my clients see life insurance as an alternative investment in the current day’s market uncertainity. Whether you live in Austin, Dallas, Houston, San Antonio, or any of our great Texas towns, you may want to consider a life insurance policy as a resource to pay estate taxes or aid a buy-sell agreement with your company. This strategy may have merit as a complement to your retirement method particularly given the volatility of the stock market and the possibility of higher earnings taxes in the following couple of years.

Regards,

S. Brett Anderson

Allsure Insurance Advisors
Toll Free: (800) 373-8781

www.allsureinsurance.com

Citations.

http://online.wsj.com/article/SB10001424052748703435104575421411449555240.html

http://online.wsj.com/article/SB10001424052748703435104575421411449555240.html

2 http://online.wsj.com/article/SB10001424052748703890904575297351898565426.html.

S. Brett Anderson

Allsure Insurance Agency
http://www.allsureinsurance.com

Reasonable Life Insurance for Texas Home Business Owners and Families.

Allsure Insurance Agency is a nationwide broker concentrating on Life, Health, and Annuites for smaller businesses, people, and famlies. We believe its our job to supply up to date information not only for our clients , but for the people in Texas that are looking for cheaper choices for a life insurance policy. . You can follow us on our blog page at http://www.allsureinsurance.com/blog/or you may visit our website athttp://www.allsureinsurance.com

Posted in Texas Life and Health Insurance | 0 Comment

Buy Life Insurance Before Your Next Half-Birthday

Posted on February 20, 2014 by

Here’s a little-known fact that may help you save money on life insurance: when it comes to underwriting, insurance carriers typically rate clients to their closest birthday.

What does that mean? It means that if you are 39 years and 5 months old, you will be rated as a 39-year-old. If you are 39 years and 6 months old, you will be rated as a 40-year-old. And so on.

So if you are looking to lower the cost of life insurance, one way to potentially save some money is to buy it before you are within 6 months of your next birthday – especially one of those “milestone” birthdays at which you enter a new rate bracket.

New marriage, new baby, new job, or just the desire to put things in good order for your family – these are all reasons to buy, upgrade or change your life insurance coverage. Additionally, there is so much that life insurance can potentially accomplish for a business owner, a couple or a family.

I invite you to learn more – and I urge you to review or look into life insurance coverage before another 6 months pass with the real possibility of premiums going up. So, please call me at 800-373-8781 or email me at banderson@allsureinsurance.com. I’d like to help you save some money!

Posted in Texas Life and Health Insurance | 0 Comment

Texas Life Insurance

Posted on February 20, 2014 by

Why get a life insurance policy if you live in Texas?

Its simple. There no other better investment for your folk than a tax free life insurance policy. In Texas, folks that purchase a plan for the following reasons:

1. Purchasing a home.

2. Sending you kids to college.

3. Starting up a business.

4. Estate planning.

5. Leaving a tax free benefit for your surviving family

How do I find the best life insurance policy at an inexpensive rate?

I’m aware That I am being biased but being life insurance broker with over 30 A rated life insurance carriers to choose between, I suspect I have the money tools available for highest rated carrier and the minimum price. We review each client as an individual and then identify which company is the best fit.

How do I determine how much life insurance do I actually need?

The simpliest approach will be to take your annual salary and multiple that by 7-10 times your revenues. Example, if you earn $50,000 each year, you would need a life insurance policy benefit of $350,000 to $500,000. We review each case individually to pinpoint the right life assurance benefit amount so you can sleep at night knowing you are protected.

Should I buy a Term life policy or should I purchase a Permanant Life Insurance policy?

We think that 95% of Americans should purchase a Term Life Policy. A Term Life policy is the least dear compared with a Permanant Policy (Whole Life/Universal Life) and most term life policies supply a conversion to a complete life and/or universal life if you need to increase your life insurance policy period. This usually occurs when the insured is nearing the expiration period of their term life insurance policy and either they have become uninsurable due to medical issues. An advantage of the conversion is that you are going to not have to retake your medical exam but your rates will increase due to your age.

I would like to review my life insurance rates but I’d like to go to a website that offers free quotes without caring about multiple agents calling me!

We at Allsure Insurance utterly understand!! That explains why our quote engine is personal and we are not lead generation or advertising company. In reality all that you need to do is enter your state, date of birth, benefit amount you want, and the term period, Instantly you will see all of the smoker and non smoker rates. If you interested in applying, then you would press our “application request” tab, enter your private info, and then we’ll contact you. Its that easy.

If you are interested in researching your life insurance, you can go to our website: http://www.allsureinsurance.com and press our life insurance tab to kick off the process of shielding your family and business.

S. Brett Anderson

Allsure Insuranc e Agency/www.allsureinsurance.com

Reasonable Life Insurance for Texas Home Business Owners and Families.

Allsure Insurance Agency is a nationwide broker concentrating on Life, Health, and Annuites for smaller businesses, people, and famlies. We believe its our job to supply up to date information not only for our clients , but for the people in Texas that are looking for cheaper choices for a life insurance policy. . You can follow us on our blog page at http://www.allsureinsurance.com/blog/or you may visit our website at http://www.allsureinsurance.com

Posted in Texas Life and Health Insurance | 0 Comment

Update for Healthy Texas Plans for Small Business Owners

Posted on February 20, 2014 by

Effective July 26, 2011, United Health Care announced that each member who earns less than $32,670 and who enrolls in a Healthy Texas plan may be eligible for an additional $100 reduction in their monthly premium. This is a great way to help these folks get affordable insurance through their Healthy Texas plans.. United Health Care states that they have a limited number of members they can support on a First come basis.

S. Brett Anderson, Allsure Insurance

Website: http://www.allsureinsurance.com

Posted in Texas Life and Health Insurance | 0 Comment

Texas Health Insurance for Small Businesses

Posted on February 20, 2014 by

A new private/public health insurance product has been designed for small businesses and their employees in Texas, The Healthy Texas Plan! This partnership will allow uninsured small employers (Uninsured the past 12 months) to access quality health plans at an affordable price. Healthy Texas plans are provided by private carriers.

Enrollees in Healthy Texas choose from private health plans that have been approved by TDI. In accordance with the requirements of the Healthy Texas program set forth in Chapter 1508 of the Texas Insurance Code, TDI is currently  contracted with Celtic Insurance Company and United Healthcare to be participating health plans in the Healthy Texas program.

What are the Plan Features?

  • Two plan designs choices ($500 or $1,500 calander year deductible)
  • $25 Copayment for Office Visits (most physician office services)
  • 100% coverage for Preventive Care
  • 80% CoInsurance for inpatient (hospitalization) and outpatient surgery
  • Network only benefits that could save you out-of-pocket expenses
  • Prescription Drug coverage included $10/$25/$50 ($200 or $500 annual deductible applies)
  • Optional coverage available (Dental, Vision, Life)

How does my small business qualify for the The Healthy Plan of Texas?

  • Employer must be located in Texas and must qualify as a small business with 2-50 eligible employees
  • Employer must not have provided a qualified small group health insurance policy 12 months prior to HealthyTexas application
  • 60% of eligible employees must enroll
  • At least 30% of your employees annual wages must be at or below 300% of the federal poverty level ($32,670 in 2011)
  • Employer must pay at least 50% of the premium costs for employees and must offer dependent coverage
  • Each eligible employee must be a citizen of the United States or is an alien that is in our country legally

If you would like to inquire about a brochure, please feel free to contact me anytime at (800) 373-8781 or by email: banderson@allsureinsurance.com

Regards,

S. Brett Anderson

Allsure Insurance Agency / www.allsureinsurance.com

Posted in Texas Life and Health Insurance | 0 Comment

Health Insurance Changes effective September 23, 2010

Posted on February 20, 2014 by

After Congress passed the Patient Protection and Affordable Care Act last March, one of mandates will take effect this September 23, 2010.

The new changes to health care include:

1. Coverage cannot be denied to children with pre-existing conditions. Health insurance companies can no longer deny coverage for children age 19 and younger with serious medical conditions. However, be prepared for increases in your monthly premium.

2. Extending the age limit of young adults. Young adults are now able to remain on their family’s health insurance plan up to age 26 as long as they do not have coverage through their employer.

3. Free coverage for preventative care. This entails that insurance companies cannot include charges for deductibles, office visit co-pays, or co-insurance for services such as: immunizations, mammograms, colonoscopies, and other basic preventative screening.

4. Insurance Companies rescinding coverage is now illegal.  If a policyholder became sick while their policy was in force, insurance companies would search for errors and/or technical mistakes on the policyholders application to use a pretext to deny coverage.

5. No more Lifetime and Annual dollar limits. Insurance companies can no longer enforce maximum lifetime and annual benefit dollar amounts.

6. External review included on appeals on coverage. Policyholders can now appeal coverage decisions or claims through their insurer and through an independent external reviewer.

If you are concerned and would like to discuss your options regarding your health coverage, please feel free to contact me at (800) 373-8781.

Regards,

S. Brett Anderson, President

Allsure Insurance Agency
Email:  banderson@allsureinsurance.com
Website: http://www.allsureinsurance.com

Posted in Texas Life and Health Insurance | 0 Comment