Insurance

This is always a great question to answer.

If your family is well off and has plenty of assets, no debt, college is funded and the retirement is taken care of, your answer is "Not Much!" or perhaps "None"!

Of course, none of my clients starting out have large funds to draw off of or an inheritence waiting for them (or their kids, if they are not around) so life insurance is a reasonable and a very wise decision.

A standard rule of thumb is TEN to FIFTEEN times your annual income.

If you haven't done any asset protection planning, your wealth is vulnerable to potential future creditors and, should the worst happen, you could lose everything.

Lawsuits, taxes, accidents, and other financial risks are facts of everyday life. And though you'd like to believe that you're safe, misfortune can befall even the most careful person. What can you do? First, identify your potential loss exposure, then implement strategies that are designed to help reduce that exposure without compromising your other estate and financial planning objectives.

Long term care is the type of care you may need if you have a prolonged physical illness, disability or severe cognitive impairment (such as Alzheimer’s disease) that keeps you from living independently.

Here are some very important things to consider when meeting with your financial advisor and planning you long term care:

• Two-thirds of people over age 65 will need long term care in their lifetime.
  

Many have heard the idea that term insurance is the only way to go. “Buy term and invest the difference” is the mantra of many financial planners and, “industry experts”. The, “buy term” marketing push has been so effective over the last 20 years that it is almost accepted as fact.

The reality is that life insurance is like everything else. You have different products available and each has its own place. My 7th grade shop teacher use to say, “Choose the right tool for the right job”. Life insurance is no different.

A local insurance agent has lost his license after failing to respond to an administrative complaint filed against him. James R. Fogle, 3108 S. Atlantic, lost his license after failing to respond to an Aug 23 complaint that he was misappropriating premiums, according to Mitchel McLawhorn, a spokeswoman in the office of State Insurance Commissioner Bill Gunter.
Fogle does not have a listed phone number and could not be reached for comment. A spokesman for the company he worked for, Security Life Insurance Co. Said he was not connected to the Daytona Beach office.

Last week we started a series of 10 conversations where Jerry and I share our views on what we feel are perplexing issues surrounding money.

• Where do we get our beliefs?
• Why do we hold onto them so fiercely, especially when they don’t help us?
• How do we learn to run against the pack?
• Where do we find the courage to do so?
• Are we able to change?

Put Money in it's Proper Place: What Does Money Mean to You and Your Life?

For the month of February, www.thewisebuck.com is going to focus on giving you tips about insurance. Life Insurance, Health Insurance, Auto Insurance, Home Owners Insurance, etc. And, while I know this probably isn’t your (or my) favorite or most exciting personal finance topic, it is very important in creating financial independence and safe guarding our financial world. How so?

Insurance was never designed to be a financial investment, but, more importantly, insurance has always been the best financial tool for providing money when people need it the most:

1. Death
2. Disability
3. Health
4. Business Buy-outs
5. Estate Planning Liquidity
6. Retirement

There are so many options out there when it comes to life insurance. Do you know what type works best for you? Perhaps a dual option is better for you. Before you choose a policy you have to choose an agency and an agent. This can be difficult if we do not already have a good relationship with someone.

Regarding choosing an agent, I recommend looking for someone with a solid character. Someone you know, like and trust. If you do not know any agents, ask a friend for a referral.

Policy Options

In spite of being an industry with billions of dollars in transactions taking place year after year ($12 billion estimated in 2008), the Life Settlement industry seems to still be a mystery to many seniors and their advisors. Not knowing about a life settlement could result in both parties missing out on substantial amounts of money for themselves.