Life Insurance Blog

Is LTC Insurance a Waste of Money?

Posted by Guest Blogger on Fri, Jul 18, 2014 @ 09:39 AM

Many times over the years I’ve written about long-term care insurance, and it still blows me away how many people say that this coverage is a waste of money.  I’ve heard it from readers, accountants, attorneys and financial advisors. 

The only ones who want LTC coverage are the families who have been squeezed by the very difficult decisions in providing long-term care for a loved one or the agents who sell the policies.

The issues surrounding caring and paying for long-term illnesses are far more significant than issues that we think about when evaluating the purchase decision.  The factors surrounding the purchase decision are frequently the odds of needing the coverage, fear of the cost and alternative ways to get care if needed.  When you are feeling great and healthy; purchasing long term care insurance is an easy decision to put off until next year.

Consider forecasting your retirement under two scenarios.  First is with the cost of paying for coverage and the second would be the consequences of a full blown long term health emergency.  More likely than not, the later forecast will be gloomier and cause you to investigate further.

Statistics show that family caregivers on average hit the wall after about 6 months of playing nurse.  At the same time, their lives and everything else that 

Learn about ltc and life insurance with andrew g gordon inc

they do takes a back seat.  That may sound acceptable to your daughter today as she tells you not to buy coverage. But she may to have a different opinion after she sees how challenging that care givers role can be.

Regarding the costs of providing care, there are direct costs such as doctors, nurses and therapists, but also the indirect costs of lost wages for family care givers.  Elder clients often tell me that they don’t want to become a burden on their children at any time. That burden could be financial, time or both.

In recent years, I thought that LTC insurance will be as ubiquitous as health insurance is today.  But unfortunately for seniors, that is not true.  Premiums have been rising materially throughout the past decade and underwriting has become more stringent.  Most policies leave the door open for future rate increases, which indeed scares buyers.

Your options to better contain the cost of your LTC coverage are quickly dissipating in the insurance marketplace.  For the past several years, as evidence lead professionals to believe that premiums were set to rise, the advice frequently went to shorter payment periods such as 10 or 20 pay policies or policies that provide a refund of premiums for coverage never used.  Limited pay policies have become very rare in the marketplace today with only a few companies still willing to underwrite that risk.  Return of premium policies still exist, but require a much larger premium outlay in order to generate the cash for the insurer to fund the guarantee.

Insurance markets are constantly changing and evolving.  The outlook for LTC insurance still calls for rising premiums, and should cause anyone concerned about the impact of long term illnesses to take another look.

  Beneficiary Choices Guidejohn p napolitano card

John P. Napolitano CFP®, CPA is CEO of U. S. Wealth Management in Braintree, MA.  Visit JohnPNapolitano on Facebook or uswealthnapolitano.com.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. John Napolitano is a registered principal with and securities offered through LPL Financial, Member FINRA/SIPC.  Investment Advice offered through US Financial Advisors, a registered investment advisor. US Wealth Management and US Financial Advisors are separate entities from LPL Financial. He can be reached at 781-849-9200.

Insurance guarantees are based on the claims paying ability of the issuer.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

Insurance offered through US Insurance Brokers.

Tags: health insurance, health care, long-term care, retirement, ltc, long term illness, senior health care, insurance costs

Life Insurance Beneficiaries

Posted by Bill Cordaro on Wed, Jul 16, 2014 @ 09:34 AM

describe the imageWhen choosing one or more life insurance beneficiaries, it is important to note that there are 2 major distinctions: Per Capita and Per Stirpes.

When a person dies without a will, the estate of the deceased is called intestate. In this case, the state will take control of the estate and decide who will become the beneficiaries. The property of the estate will pass to the decedent’s heirs at law according to the laws of intestacy. Although this blog is not about life insurance planning, it is always recommended that everyone have a will. The will should be executed by a qualified professional.

Per Capita - the grantor (you) indicates that no one except the named beneficiary receives that share of the estate. For example, let’s say that you name three beneficiaries in your will, your 3 siblings, David, Ronald and Susan.  You want all 3 to split the estate equally. If each sibling is alive, each will inherit one third of the estate. But let’s assume that your brother David dies before you do.

Ronald and Susan will then inherit 50% of your estate.

Per Stirpes – In the same example above, you still name three beneficiaries in your will, your 3 siblings, David, Ronald and Susan.  You want all 3 to split the estate equally. If each sibling is alive, each will inherit one third of the estate. But let’s assume again that your brother David dies before you do.

His share (one-third) automatically is inherited by his heirs (such as his children).

Knowing the difference between Per Capita and Per Stirpes inheritance is an important factor when organizing your will; make sure to choose the system that best fits the needs of you and your family.

Legal & technical disclaimer:  Any advice provided here is not legal advice.  Statements or advice are based on our experience in risk control, mitigation, and transfer, and is believed to be effective and valid when provided.  All legal or contractual wording, including any suggestions offered in a legal context should be reviewed by qualified legal counsel.

Learn more about life insurance here.

insurance question click life quote 
describe the image

Tags: insurance, life insurance, will, beneficiary, beneficiaries, per capita, per stirpes

Pharmacy Errors: Buyer Beware

Posted by Geoffrey Gordon on Tue, Jul 15, 2014 @ 10:50 AM

Protect yourself and loved ones from the errors pharmacists and doctors can make with life and personal from Gordon InsurancePharmacists do an excellent job of filling prescriptions from physicians and work with remarkable accuracy most of the time; highly trained medical professionals, pharmacists are an integral part of the medical system.

However, because of the specificity needed in prescriptions, when pharmacists do err, the results can be tragic. This story was recently posted on PeoplesPharmacy.com:

Real Life Stories

“My ex-husband died from a pharmacy error. He was in relatively good health before the pharmacy dispensed an overdose of Coumadin. The physician denied any responsibility for this problem, though the pharmacy blames the physician." 

“The drug manufacturer clearly states in its written information that Coumadin should not be taken twice a day. Even if the physician erred on the phone, the pharmacist should have been knowledgeable enough to question the overdose.”

What Now?

The moral of this story is that when dealing with important medication, it’s important to err on the side of caution. Is a pharmacy error very statistically unlikely? Yes. Is it worth taking the extra 20 seconds to verify that your medication and dosage is correct with your physician and your pharmacist? Yes.

For more life and health insurance information, visit our website for topical and relevant insurance resources.

insurance question click Get Quote
Geoff Gordon

Tags: pharamcist, pharmacy, mistakes, doctors, dangers, errors

In Case of Emergency: Medical Log Preparation

Posted by Marge Libby on Thu, Jul 10, 2014 @ 09:17 AM

Prepare for medical emergencies with life insurance from andrew gordon inc norwell maIf a member of your family has a medical emergency, do you know what to do? Do you know what medications, vitamins or herbal supplements they take?

I remember the first time the ambulance came for my mother, and the paramedic asked us what medications she was taking.  We scrambled for the medicine bottles that, fortunately, were kept in one basket.  This took precious time that may not always be available in a critical situation.

After that we made a medication log that included family medical history.  This was kept on our computer and updated with EVERY medication/dosage change.  Updating the information is extremely important.  A printed copy was kept in a plastic folder and clipped to the refrigerator.  The next time the paramedics came we simply reached for the folder.  They were extremely grateful and commented that they wished everyone would do this.

So, I urge you to take the time.  Once the info is in the computer it’s just a matter of updating it regularly. There are several medical logs available online:

-http://www.yourmedform.com/

-http://www.acep.org/medicalforms/

You could also make up your own spreadsheet. Your loved ones and emergency responders will thank you for it.

If you have any questions about insurance or risk prevention, be sure to contact us. In the meanwhile, get that medical log started and check out our other blogs! Learn more about life insurance here.

life quote insurance question click 

Marge Libby

Tags: life, preparation, medication, bag, Emergency, necessities, medical, log

Life Insurance - Why You Should Pursue It

Posted by Geoffrey Gordon on Wed, Jul 09, 2014 @ 10:27 AM

Protect your family with life insurance from andrew gordon inc insurance norwell maLife insurance costs have come down consistently over the past 20 years, reflecting the fact that people are living longer.  Medical advances, awareness of the benefits of diet and exercise, and vehcle safety all contribute to this trend. The hardest part about life insurance for most people is initiating the process.  Nobody wants to pressured into buying something they don’t need and don’t want.  Fortunately today, it’s easier than ever to get a no-pressure quote from us.  We use SBLI for most customers needs, since they’re always competitive, and always easy to work with.  

SBLI has an online needs calculator to assist you with deciding on an amount. We offer the same great rates and coverage options, but you also get our help with deciding the best match for you, as well as navigating the underwriting process.  You choose the time period you want insurance to last, and you’re on your way…

Underwriting is easy too.  When you first speak with us, we’ll ask a few questions about your height and weight, family history, and any hazardous hobbies you do to get a realistic sense of your underwitting category, so you can plan on costs that are realistic.  Once you decide on what you need, we arrange to have a licensed paramedic meet you at your home or office for the medical part. Getting around to the right amount of life insurance is fast, easy and economical.

Learn more about life insurance here, and get some life exam tips here

life quote   insurance question click

geoff gordon

Tags: life, insurance, cheap, coverage, accident, massachusetts, liability, protection, prevention, underwriting

Life Insurance: Do I Really Need It?

Posted by Geoffrey Gordon on Thu, Sep 29, 2011 @ 12:48 PM

describe the imageLast week, browsing through the endless visage of space that is the internet, I stumped upon (without using StumbleUpon; it's safe to say that the web service has effectively killed an otherwise good expression) a forum where people were invited to post questions about their life insurance.

One quizzical questioner quipped, "Why do I even need life insurance? Can't I save the money myself?"

So Do You Need Life Insurance?

The answer, in most cases, is no. I say 'in most cases' because there are always exceptions. For example, life insurance may be court-ordered as part of a divorce settlement; but in general, you have no legal obligation to purchase life insurance.

Now, before you sprint out of the room and dramatically burst into your insurer's office covered in sweat from the run, demanding that your policy be canceled... Hold on a second.

Why You Should Have Life Insurance

While you don't NEED life insurance, I'm going to convince you that it's in your best interest to have it. The point of life insurance is that it gives your next of kin a payout if you die before you've saved enough money. The amounts vary, but the idea is that you pay a little, and get a lot should you pass away.

Without insurance, there's always the chance that you pass away before you have enough money saved, and the small amount of money that you pay for life insurance most likely won't affect your saving potential in the long run.

And for you naysayers who are still convinced that you should put your life insurance money into savings instead, it's not easy to give your beneficiary access to your money in the bank.

Although in movies, a will is read and that's all, in real life your savings goes through probate; so anyone who you or your estate owes money to gets paid first, until all your outstanding debts are paid off.

Learn more about life insurance here

life quote   insurance question click
Geoff Gordon

Tags: life, insurance, Business, cheap, saving

Subscribe to Email Updates