Most people have never sat down with a financial advisor or insurance broker. Consequently, they're not aware of all of the products that might benefit them. Some may feel that the advisor is just there to push products, and many probably are, but the primary purpose of having a consultation with a financial advisor or insurance broker is to have an overview of your financial picture and determine what needs may be met, if any or what improvements on any existing coverage can be rendered.
First, life insurance is ideal for people who are married, have children, own real estate assets, need business protection, or have estate planning needs. Term life insurance, or temporary life insurance, can be for durations of 10, 15, 20, or 30 years. It's great for people who are looking for a low, affordable premium. Whole life insurance is a permanent life insurance that insures you until you reach 100 years of age.
The premiums are more expensive compared to term life insurance, but it does build cash value.Second, health insurance is a necessity and can provide you with peace of mind in the event of an unforeseen illnesses or accident. Any pre-existing conditions, such cancer or diabetes, will leave you without health coverage on an individual plan, but you would be eligible for health coverage under a group plan. For those who are self-employed, a minimum of two employees will allow you to participate in a group plan and obtain health coverage with pre-existing health conditions. Since mounting health care costs can leave the uninsured and underinsured in financial ruin, health insurance should be a top priority. However, this is not always a possibility since premiums can be very expensive.
On the contrary, health coverage for seniors is much more attainable compared to the rest of the population. Most seniors who turn 65, are eligible for Medicare, which is health insurance provided by the federal government. They are entitled to Medicare Part A, which covers hospital expenses, and Medicare Part B, which covers physician expenses. Nonetheless, Medicare only covers 80% of these costs. Additional health insurance, such as Medicare Part C, also known as Medicare Advantage, and Medicare Part D, which is a prescription drug plan, is provided by private health insurance companies, and is recommended for complete health coverage. Moreover, purchasing a Medicare Supplemental plan and a stand alone prescription plan, would also provide complete health coverage. By and large, obtaining complete health coverage for seniors is very affordable and pre-existing conditions typically are not an issue.
Additionally, disability insurance is better suited for people who are self-employed or are the sole breadwinners of their household. It provides extra protection in the event an accident or illness leaves you unable to work. Generally, the insurance company will only cover a percentage of your prior income and most premiums are low.
Further, business insurance provides coverage for business owners who desire protection when a business partner or key employee dies. In the event a business partner dies, the heirs receive compensation for their share of the company leaving the rest of the business partners with full ownership of the business. On the other hand, when a key employee dies, the business receives compensation and is able to proceed with obtaining a suitable replacement without regard to losses within that time.
Above all, alternative investment vehicles for retirement benefits should be considered in the case of low returns or frequent losses. Rolling over a bank CD, 401k, or IRA account into a fixed annuity can provide higher returns, guarantees your principal, and tax deferred benefits. Still, if an emergency withdrawal is anticipated in the near future, early surrender or withdrawal charges associated with the annuity need to be foresighted.
On the whole, possessing insufficient insurance coverage or retirement assets can leave many with sleepless nights. On the other hand, overpaying for insurance will burn through your pocket book. All and all, striking a balance with your immediate needs and available funds after assessing any vulnerabilities in your financial picture is crucial to the safeguard of your peace of mind and hard earned money.
Evelyn Arroyo is an insurance and real estate broker in the state of Illinois. Evelyn has helped many clients on the road to increasing their wealth. For more information and a free report on protecting your finances visit http://www.maximizeyoursavings.net/ .
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