FINANCIAL SERVICES

There are two main types of life insurance - term and whole life. Term insurance is pure insurance. You pay a premium to the insurance company and should you die your beneficiary receives the death benefit. If you fail to pay the premium you have no coverage. Premiums depend upon your age, sex, and health. The premium may increase annually or you can establish a program in which the premium is guaranteed to remain level for 5, 10, 15 or more years. There are many companies offering term insurance. Some offer better rates for healthy people than others. Still other organizations have programs that are better suited to smokers. Some even differentiate between cigar (a popular "hobby" for many today) and cigarette smokers. Companies also look at health issues, such as diabetes, weight, and family history differently. Term insurance is very popular today, especially considering the positive results of the stock market over the last 16 years. Many people "buy term and invest the difference".

Whole life insurance has two basic components - the insurance portion of the contract, and an internal cash value feature that grows tax-deferred. There are several forms of this type of insurance such as pure Whole Life, Universal Life, Variable Life, and Variable Universal Life. They all have these two basic components. The main difference between these forms is how the internal cash is treated. There are many reasons why persons look to this type of coverage. One chief reason is to have coverage for the latter years of their lives that is more affordable or can even be paid for with the internal cash value. Another reason is to have a "savings program" which may be used for many things. Examples include mortgage reduction, college expenses, and augmenting a retirement plan.

The most important decision for you is to agree to meet with someone who will listen to your needs, review your current life insurance program and help you determine the best course of action. We will be pleased to discuss your particular circumstances and offer a tailored solution to your needs. We represent over six different life insurance companies. Our allegiance is to you and ensuring you have the best possible program available.

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Some people choose to use term or whole life insurance programs to cover their mortgage. Mortgage life insurance is a different program in that the insurance death benefit usually declines as the mortgage is paid off. Some companies also include a form of disability insurance within their mortgage protection program. This feature is designed to provide mortgage payments should the insured be unable to work and has reduced or no income to make mortgage payments. As with all forms of life insurance, it is best to meet with a licensed professional to determine your needs and let he/she find the best solution for you. What is right for John and Mary Jones may not be the correct fit for you. Please call to arrange a meeting with our professional staff. We want to ensure you have the best program for you!

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Retirement Programs

This is a very hot topic these days. The media is pushing information on the public in record fashion. The basic premise is the current American worker is not saving enough for retirement. Many experts believe people will have to drastically reduce their life style to survive during retirement. There are many philosophical issues we could discuss here, but they are better left for a private meeting with you and our investment professionals.

Another reason this topic is getting a lot of press is because of the Tax Relief Act of 1997 and the many changes is has created for retirement planning. It used to be people had a 401K, SEP, 403B, or some other program through their employer, and maybe an IRA or two, which they probably stopped contributing to when the tax deductibility rules changed a few years ago. Now we have all of the above plus Roth IRA's, etc. What are these new programs and do they fit your needs?!!

A third point is the rapid increase in the use of mutual funds to fund retirement programs. There are now over 10,000 different mutual funds. How does one know which ones to use? Even more so, what are mutual funds, how do they work, and should I be using them for my retirement?

We are prepared to meet with you and discuss your needs in a very unique way. We will look at your goals, your time frame, your feelings about risk, and put together a program tailored to you. Speaking of risk, one area that we feel does not get enough attention is what we call the downside risk!!

Please call us to arrange an appointment to discuss these important topics. We will ensure your best interests are followed.

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Annuities are contracts between a person and an insurance company. There are really only two basic types: Immediate and deferred. With an immediate annuity and insurance company guarantees the annuitant an income for the rest of his/her life or for a certain period of time he/she selects. A deferred annuity refers to a contract in which the person makes one or several payments to the company and value is earned tax deferred. Deferred annuities may be changed to immediate at certain points in time.

A second point about annuities is how the money earns value. If the annuity is fixed, the insurance company will credit the contract a certain amount of interest periodically. Think of it as a tax-deferred CD. Please note the annuity is not federally insured as with a CD. If the annuity is a variable contract, then the internal means of creating value is predicated on investments in equity or bond positions of many different companies through the use of mutual funds. Obviously, with a variable annuity there is more risk.

Annuities are often misunderstood, and appear to be more complicated than they really are. As to whether or not they make sense for you, only a meeting wit our professional staff will tell. As always, we pride ourselves on being very good listeners. You explain to us what it is you want to accomplish and we will try our very best to ensure you of the very best solution unique to you. Please call today to arrange a confidential meeting.

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This topic is getting a lot of coverage, especially with the ever-increasing cost of higher education as well as the changes in the Tax Relief Act of 1997. The bottom line is if you have issues or concerns with this part of your financial planning you should call us for an appointment. Our professional staff will meet with you, explain the alternatives available to you, and help you map a strategy to achieve your goals.

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This is one of the most overlooked issues when people do financial planning. People will quickly buy a life insurance policy but never consider a disability policy. After all what are the odds of becoming disabled and not being able to work? Actually, the odds are higher than dying!! If you are employed, your employer provides Workers Compensation and New York State Disability. Each provides some very minimal coverage. Also, you may have a group program that might protect some of your wages. If you are self-employed, the odds are you do not have an adequate program in place to provide income to you or your family in the event of a disability.

Disability insurance policies are dependent upon your age, health, income, and occupation. The key is to fully understand what coverage(s) you have and ensure you obtain only what is needed. Overlap of coverage means you are paying more than you should for something you will never get to use. No one can create a program whereby you are able to earn more by not working than working. Our staff is prepared to meet with you to review what coverage you have and make recommendations accordingly. We only want what is best for you. A satisfied client will ensure your trust in our programs and services.

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America's population is aging. The Baby Boomers are rapidly moving towards middle age. Medical technology is keeping us alive longer, hopefully with a quality of life to our liking. And society and government are in a conservative stage and together with the global economic pressures will not be able to offer any programs for long term care.

What is long-term care anyway? It is much more than nursing homes!! It is a broad range of supportive medical, personal, and social services needed by people who are unable to meet their basic needs for an extended period of time. This may be a teenager who drank too much, had an automobile accident and is now a quadriplegic. It may be and 85 year old person with Alzheimers. The care can be given at a nursing home or at an adult day care facility, and adult living facility, or at home.

People believe Medicare pays for long term care. For every dollar spent on this type of care Medicare pays less than ten cents!! And, that will probably be in the first 100 days if it is approved. About 52 cents of every dollar spent for care comes from personal savings. And, about 45 cents of every dollar comes from Medicaid, but that occurs only after the person/family is declared to be poor because most of the savings was spent for care!

There are several insurance programs to cover long-term care. All programs are designed to help people avoid being dependent upon family or loved ones, and to provide a quality of life to the insured. Some are also designed to help protect the assets of the patient.

There are many issues to consider when thinking about insuring against long-term care. Our staff is very knowledgeable in this topic and will work closely with you to ensure you consider all your options. We are prepared to show you the many programs from many different companies. We want what is best for you. Why not call us now to arrange a confidential interview to see if we may be of assistance?

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