On the subject of long-term care insurance, Orman called it "a must if you can afford it."
Long-term care insurance (LTC) is one of the most important insurances anybody can get, from the day you buy it to the day you use it. Average age of entry into a nursing home is 84. If you buy it at 60 and all of a sudden you are 75, you can’t afford it anymore. The insurance company took the correct bet that you’d drop it right around the time that it’s really important. My greatest advice to you would be that if you are going to buy LTC, you need to know that, without a shadow of a doubt, it is going to be an easy expense for you to meet every single year for the rest of your life.
Get insured. We’re living longer than ever before. And with that comes the hard truth that we don’t know how we’ll fare. “That’s why it’s important to get long-term-care insurance in your 50s,” says Orman. It will cover nursing home, assisted living or in-home health care costs, which can take a big chunk out of your bank account—or your kids’!—otherwise. Don’t wait until after 60 to purchase it, however. You’ll face higher premiums and may be denied coverage because of a preexisting condition. Act early and give yourself peace of mind.
Get a free quote:
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www.MintcoFinancial.com
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813-964-7100
716-565-1300
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Showing posts with label asset protection for physicians. Show all posts
Showing posts with label asset protection for physicians. Show all posts
Monday, April 30, 2012
Friday, February 10, 2012
Life Insurance for physicians:life insurance is creditor protected to an unlimited amount by law.
by Ike Devji,J.D.
We thought this opinion is very interesting for all physicians planning in buying Life Insurance or have not decided yet.
As an Asset Protection attorney I don’t sell life insurance but I encourage my clients to have it, and often very large amounts of it. I’ve seen its power first hand and the way it has saved the families of many we work with.
Insurance Can Be a Protected Asset Class, Not Just an Expense.
Sure, everyone likes the idea of having and potentially leaving millions of dollars in insurance proceeds to their families, but no one wants to pay the bill, that’s human nature. Given the current economy and the instability in both the securities and real estate markets, many people are heavily allocated to cash in money market accounts or other non-productive vehicles like low yield bonds and CDs.
Unfortunately, all of those cash equivalents are exposed to you and your family’s personal and professional liabilities, a dangerous place for your savings to be vested.
Given this low yield and your never-ending risk of creditor exposure as a doctor we are increasingly examining life insurance as a creditor protected alternative to cash. In many states (Ariz., Texas, Ill., N.M, Fla., and Hawaii, to name just a few) the cash value of your life insurance is creditor protected to an unlimited amount by law.
I know, you are immediately thinking that the reason you were in cash was that you wanted and needed to maintain some liquidity for opportunities, expenses, or both and that being in a life insurance policy would destroy that liquidity; that’s no longer true.
Traditional life policies have either large surrender penalties (imposed if you take money out in the first few years), lagging cash values (i.e. you put $100,000 in but there is only $65,000 in your account the first three years) or in the worst cases, some combination of both. Those penalties are in place to protect the insurance carrier from you taking the money out too quickly and so that the expenses of the commission they paid and various other items are covered. In many cases, when carefully planned for as part of a long-term estate planning strategy, that’s OK, but that kind of policy is not a good “cash alternative.”
The kind of policy I’m talking about will likely supplement that traditional estate planning policy and is typically fully liquid from day one should you want or need to use the cash.
Think about it, if you have large amounts of cash allocated to one of the non-productive cash alternatives listed above you are earning as little as 15 basis points (that’s .15 percent!) on your money, it’s exposed to your creditors and fully taxable when you die.
Compare that low-yield, taxed, and exposed cash to a strategy that can be 100 percent liquid, is often creditor protected by law, offers potential tax-free growth in excess of what you are now getting a 1099 tax form on and has a death benefit multiplier of as much as 1000 percent and the power of using and understanding these new policies and strategies becomes pretty clear.
If you are wondering why you have never seen a policy like this its because most insurance advisors don’t know they exist and many can’t even sell them if they are single line agents tied to just one carrier.
Only top advisors who regularly deal with the affluent physician and business owner market are aware of these kinds of strategies because they have been trained to be aware of your risks and address them more proactively than the guy in your neighborhood who you buy your auto insurance from.
Mintco Financial is a wealth management company serving its clients over 16 years in NY and FLA. Contact us with your questions.
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