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Bill Kinder & Associates

5 Tips on Deciding Whether to Buy Long-Term Care Insurance

May 28th, 2015

long term care

Deciding Whether to Buy Long Term Care Insurance

Insurance is a huge industry in the United States, and in many ways it benefits the lives of millions by providing security over potential risk. Home insurance, car insurance, and even holiday insurance is taken almost as a given, but when it comes to long term care insurance, policy holders are something of a minority.

 

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Understanding long term care insurance can mean that you make the right call when it’s time to start planning. Long term care insurance will ensure that help is available when the time comes for in-home care, assisted living, or even living in a nursing/retirement village.

 

What Are the Reasons for Purchasing Long Term Care Insurance?

This type of insurance will provide benefits whenever you are struck with the financial burden of care following disability or long term illness.

  • You won’t be faced with handing the burden over to family members.
  • You will have options as far as care facilities go, and in many cases can remain in your home for long term care.
  • Your long term savings and investments will be protected when you have long term care insurance.

 

Five Tips for Determining If Long Term Care Insurance Is for You

1.    Can You Afford to Self-Insure?

Buying long term care insurance policies can be expensive, and sometimes even those who are financially capable may be reluctant to invest in this type of insurance. If you can afford to self-insure through a risk management and savings scheme, it’s possible that you could be better off without a plan. Be aware that there is still a risk either way, especially if you require care that exceeds your savings plan.

 

2.    Look for Strong Insurers When Investigating Policies

Insurance companies aren’t financially infallible. You may be buying policies that you don’t expect to use for another 10, 20, or even 30 years. If you’re still weighing up the decision make sure that you only consider companies with long histories and strong credit ratings. This will make sure that the policy is still there when you need it the most.

 

3.    Find out about Group Policies before Purchasing

Find out from your employer whether there are group policies available for this type of insurance. It’s possible that you don’t need to sign an individual policy, making the decision even easier. Corporate group policies may come with additional benefits and subsidized costs.

 

4.    Consult with a Specialist

An independent financial advisor who is experienced in long term care insurance will be able to assess your own financial situation and decide if insurance is the best option. Depending on your income and assets you may be eligible for federal benefits in the instance of long term care, so insurance is not a simple decision. An advisor will help you to work through all of the possibilities and assess the financial risk choosing for or against this insurance.

 

5.    Don’t Wait Too Long before Acting

The longer you wait before deciding on insurance, the more risk you have of needing it before you’ve made your choice. Whether you’re going to self-insure, choose a policy from an insurer, or rely on other assistance methods, you need to make a decision as early as 20 years before retirement and begin contributing to your nominated plan.

 

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Few people recognize that buying long term care insurance may benefit them at some stage of their lives. The reality is that if you require care that you haven’t planned for, you could face severe financial burden and stress, or even pass it on to your family. Deciding now whether to purchase long term care insurance or invest in other options will make sure you’re financially prepared for any unforeseen eventuality.

 


 

Bill Kinder  @BKAssocAdvisors

Bkinder

Bill Kinder is the President and Chartered Financial Consultant with Bill Kinder & Associates. A company that helps people from all walks of life and income levels to position & manage their money wisely, minimize their taxes owed, protect their assets and plan for a comfortable retirement. Bill has been in business for over 35 years, holds a BS degree, plus a Chartered Life Underwriter and Chartered Financial Consultant certifications, as well as the Million Dollar Round Table’s “Top of the Table” honor. To date, he’s helped over 6,000 clients with their financial or estate planning needs. Follow him @BKAssocAdvisors or if you would like to ask him a question, send it to billk@billkinder.com. If you’d like a FREE ‘WISE Money’ Consultation, call him at (304) 250-0250.

 

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Protect Your Family With Life Insurance

May 27th, 2015

life insurance

Protect Your Family with Life Insurance

Life insurance is a productive means of protecting your family and ensuring financial security for your loved ones. Each person’s financial protection needs are unique, but the factors that you must consider are not considered to be unique. If you were to die at this moment, what would your dependents need and have available to them? If you were no longer around, what resources would your loved ones have at their disposal? What financial obligations would your loved ones have? Your mother, your father, your brother, your sister, your spouse, your son, your daughter – these are the people you love, and these are the people that life insurance is designed to assist in the event of your death. These individuals make you smile, they support you, they create memories with you, and they depend on you. By obtaining life insurance today, your family’s tomorrows will be protected.

 

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Life Insurance Benefits

There are many benefits associated with life insurance. In order to truly understand the importance of this type of insurance, you should first understand all of the advantages of obtaining a policy and what that policy is capable of – within your lifetime, and after:

 

  • While it is true that life insurance may not replace you, as a person, once you have passed away, it has the ability to replace a portion, or even all, of your current income. Not only is the policy capable of covering the costs associated with your funeral, but, it has the ability to pay any outstanding debts that you owe, and assist in covering your loved ones’ day-to-day expenses, such as housing costs, utility costs, food, and clothing. If your policy has an exceptionally large monetary value, it also has the ability to finance college tuition for a loved one and/or assist in the establishment of long-term care funds or retirement for those that you leave behind.

 

  • A life insurance policy has the ability to assist in household and childcare expenses, in the event of your death. If you were to die, and leave behind a spouse, it will be necessary for that loved ones to make changes in their life that allow them to continue to meet financial obligations. Life insurance has the ability to assist in covering the costs of childcare, transportation expenses, and payments for a service that will assist in chores and household maintenance.

 

  • If you elect to sign up for whole life insurance, the policy has the capability of providing you with cash benefits that may be used during your lifetime. Examples of these events include, but are not limited to, purchasing a home, purchasing a vehicle, unexpected emergencies, and funding educational pursuits.

 

  • Finally, life insurance has the ability to leave behind a lasting legacy after you have passed on from this life. The funds associated with the policy that you obtain has the ability to fund the future and even help in fueling dreams for your loved ones.

 

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Conclusion

Life insurance has the unique ability to assist your loved ones once you have died. Those that you love the most will be able to successfully live their lives without the complications of facing tremendous amounts of debt, being caught unexpectedly with no income, and having to make financial arrangements for your funeral and associated expenses. Life insurance allows your loved ones to avoid the issue of fearing for their financial future. It assists in providing funding to a household while it works to regain what many refer to as “financial footing”. If you want to ensure that the financial future of your loved ones is protected after your death, be certain to obtain a life insurance policy today.

 


 

Bill Kinder  @BKAssocAdvisors

Bkinder

Bill Kinder is the President and Chartered Financial Consultant with Bill Kinder & Associates. A company that helps people from all walks of life and income levels to position & manage their money wisely, minimize their taxes owed, protect their assets and plan for a comfortable retirement. Bill has been in business for over 35 years, holds a BS degree, plus a Chartered Life Underwriter and Chartered Financial Consultant certifications, as well as the Million Dollar Round Table’s “Top of the Table” honor. Follow him @BKAssocAdvisors or if you would like to ask him a question, send it to billk@billkinder.com. If you’d like a FREE ‘WISE Money’ Consultation, call him at (304) 250-0250.

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How Much Life Insurance Do You Need?

May 27th, 2015

how-much-insurance

How Much Life Insurance Do You Need?

It can be difficult to decide how much life insurance to purchase. The answer to this question varies greatly by the person’s situation, debt and responsibilities.  You want enough to cover all the necessities and allow your family to live comfortably, but you don’t want to get too much and pay for unnecessary coverage.

 

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Calculating the amount of insurance to get can be done two ways. The first is a bit time consuming. It’s a needs based calculation. In this case, you need to estimate the amount of money from your income that’s necessary for your family’s needs.  In most cases, this is the amount you have left after taxes and contributing to your retirement plan or savings. Subtract that amount that your family would receive from other sources, such as Social Security . Some people feel that if the spouse doesn’t work, they could go back to work at that time. There is a problem with this hypothesis. Not only is it a difficult time for the remaining spouse, another change, such as a spouse working, would be equally as disturbing for a child. Since many people use term insurance to cover much of the expense, it’s only pennies a month to increase coverage and  insure your spouse doesn’t have to work.

 

If you have a mortgage, the amount of the mortgage needs to be added, as well as the amount of any other debt, such as credit cards or car payments.  You also need to add in the cost of final expenses, including additional expenses that may not be covered by health insurance.

 

If you have children, you also need to factor in the cost of college. Since the cost of college increases annually by about the same amount as interest grows, calculate in approximately $23,000 for four years at a public school up to $45,000 for four years at a private college.  You also need to factor in the cost it would take to replace the jobs you do around the house.  One estimate of the value of a stay at home parent was $112,000 per year to hire someone to do the jobs the parent does. Even working spouses have a value for jobs done around the house. Hiring it out can be costly, but not getting the jobs done or trying to do it all yourself might be even more costly when it comes to family relationships, personal time and good parenting. Total the amount necessary. From this total, you subtract retirement savings, regular savings and investments and any life insurance you already own.

 

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The second method is far easier. You can get a rough estimate of needs by multiplying your present post tax income by 17 to 20. Calculating how much life insurance you need should be done after any major change in your life. While the final calculations of both may be extremely large, it won’t have to cost that much to provide adequate coverage.  Term insurance is extremely low cost, but increases in cost as you age. However, many of the needs outlined above diminish each year, so you’ll need less insurance. By creating a combination of both permanent and term insurance, you can create a plan that will provide adequate coverage for the rest of your life.

 


 

Bill Kinder  @BKAssocAdvisors

Bkinder

Bill Kinder is the President and Chartered Financial Consultant with Bill Kinder & Associates. A company that helps people from all walks of life and income levels to position & manage their money wisely, minimize their taxes owed, protect their assets and plan for a comfortable retirement. Bill has been in business for over 35 years, holds a BS degree, plus a Chartered Life Underwriter and Chartered Financial Consultant certifications, as well as the Million Dollar Round Table’s “Top of the Table” honor. Follow him @BKAssocAdvisors or if you would like to ask him a question, send it to billk@billkinder.com. If you’d like a FREE ‘WISE Money’ Consultation, call him at (304) 250-0250.

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Guide to Long-Term Care Insurance

May 23rd, 2015

Long-Term Care Insurance Policy

What is Long Term Care Insurance? – Your Guide to Long Term Care Insurance

What is long term care insurance? Long-term care refers to personal care that may be needed if you are unable to care for yourself due to a disability, cognitive impairment, or illness. While this type of care usually doesn’t improve your medical condition, it does allow you to maintain your life by ensuring you have the help you need with daily routine activities. Long-term care services may be available at your home, an assisted living facility, hospice, nursing home, or an adult day care center. This type of care can include skilled care and personal care. Long-term care can be very expensive, and the cost will depend on where you receive the care, the type of medical professionals providing that care, the type of care needed, and the amount of care you need.

 

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Is Long Term Care Insurance Right for You?

How do you decide if long-term care insurance is right for you? With this type of insurance, your assets are protected against the huge expense of extended long-term care. However, paying for this insurance generally only makes sense if you have more assets than just a home, vehicle, and a bit of cash. If you already have a tough time paying for monthly expenses, this type of insurance may not be right for you.

To determine if long-term care insurance is the right choice for you, consider your finances, personal risk factors, and the alternatives available. When thinking about your finances, think about your current income, whether you’ll be able to afford the policy in the future, and the overall cost of the policy. You also need to consider your personal risk factors, such as your life expectancy, your current family situation, and your family health history.

 

Services Generally Covered

What services are usually covered by a long-term care insurance policy? Your policy may pay for the following types of care:

  • Assisted living care in an assisted living home that is licensed
  • Adult day care in a center that has a license. Some adult day care services may include:

o    Personal supervision
o    Nursing care
o    Social activities
o    Therapeutic care
o    Educational activities
o    Nursing home care in a nursing home that is licensed
o    Home health care provided by a home health agency that is licensed.
o   Other services may be included in your policy, such as

– Care after a stay in the hospital
– Caregiver training for members of your family
– Respite care
– Hospice care
– Help with regular household tasks

 

Factors that Determine Your Rates

The rates you’ll pay for a long-term care insurance policy can vary greatly. Some of the factors insurance companies use to determine your rates include:

  • Your Local Area – The cost of long-term care may vary from place to place, so your local area can affect your premium.
  • Age – You will generally enjoy lower premiums if you’re younger.
  • Elimination Period – The longer you’re able to pay for expenses before you have to use the policy benefits, the lower the premium.
  • Health – When you purchase your policy, your current health will affect your rates. If you have any health problems, you can expect a higher premium.
  • Duration and Benefit Amount – Expect to pay higher rates for a policies that have longer payment durations and higher benefit amounts.

 

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Now that you know the answer to the question, “what is long term care insurance?” you have the information you need to decide if this is a policy you need. If you do decide to purchase this type of insurance, make sure you carefully consider your options, check the benefits available, and shop around to find a reasonable price.

 


 

Bill Kinder  @BKAssocAdvisors

Bkinder

Bill Kinder is the President and Chartered Financial Consultant with Bill Kinder & Associates. A company that helps people from all walks of life and income levels to position & manage their money wisely, minimize their taxes owed, protect their assets and plan for a comfortable retirement. Bill has been in business for over 35 years, holds a BS degree, plus a Chartered Life Underwriter and Chartered Financial Consultant certifications, as well as the Million Dollar Round Table’s “Top of the Table” honor. Follow him @BKAssocAdvisors or if you would like to ask him a question, send it to billk@billkinder.com. If you’d like a FREE ‘WISE Money’ Consultation, call him at (304) 250-0250.

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