Life Insurance
Life Insurance policies are a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
Common types of life insurance include:
- Term life insurance
- Whole life insurance
- Universal life insurance
Features of life insurance plans:
- Issued in the name of the policyholder.
- Flexible premium payments.
- Customizable tenure.
- Customizable sum assured.
- Pay-out on death or on maturity.
- Ability to assign nominees.
- Features an investment component.
Medicare
Medicare is the federal health insurance program for: People who are 65 or older. Certain younger people with disabilities. People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD)
There are four parts of Medicare: Part A, Part B, Part C, and Part D.
- Part A provides inpatient/hospital coverage.
- Part B provides outpatient/medical coverage.
- Part C offers an alternate way to receive your Medicare benefits
- Part D provides prescription drug coverage.
Fixed Annuities
A fixed annuity provides guaranteed retirement income payments. With a fixed annuity contract, you make one or several payments to the annuity provider, which in turn promises to pay you a fixed return on your contributions, no matter how markets are performing.
What is a fixed annuity example?
A life insurance policy is an example of a fixed annuity in which an individual pays a fixed amount each month for a pre-determined time period (typically 59.5 years) and receives a fixed income stream during their retirement years.
Disability Insurance
Disability insurance provides a portion of your income if you become sick or injured and are unable to work. It can help everyone who depends on their job for living expenses.
Disability benefits are designed to replace a percentage of your income if the unexpected happens. You may be eligible for DI if you are unable to work and are losing wages because of your own non-work-related illness, injury, or pregnancy.
Long Term Care Insurance
Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.
Long Term care policies can be structured to your needs as:
- Traditional (i.e., stand-alone) policies
- Hybrid policies: Hybrid polices require a large initial cash outlay, but your heirs can get some of the money back if you never use the policy
- Policies as part of a Continuing Care Retirement Community package.
Critical Illness Insurance
Critical-illness plans often cover diseases like cancer, organ transplant, heart attack, stroke, renal failure, and paralysis, among others. There is no coverage if you're diagnosed with a disease that isn't on the specific list for your plan, and the list of covered illnesses varies from one plan to another.