Insurance & Alternative Solutions, LLC.
PROTECTION STRATEGIES
Death and Disability Risks
Risk of Premature Death
Life insurance is an easy and most effective way to instantly provide a lump sum of money, for your loved ones, in the event of a tragedy to you. The tax-free money they receive can be used to help pay for expenses, loss of income, debts, educational needs, mortgage payments, and more.
We understand that you have worked hard to provide a quality life for your family, and it’s natural to feel responsible for protecting your family’s financial future. Regardless of where you are in life, no one wants to think about the worries that affect us all — but being prepared can make all the difference for the ones you care about most.
To be prepared, you need to ask yourself the hard questions:
How much life insurance should I have?
Can my family pay the mortgage and pay on-going bills? What about our future goals i.e. children education, surviving spouse retirement?
Which type of life insurance best fits my situation?
You don’t have to have all of the answers right now – we can help you find them.
Our team of professionals can assist you and your family in finding the clarity to answer these questions with more confidence. We will introduce concepts and philosophies to help you calculate the appropriate amount of coverage to give you peace of mind.
How To Find The Suitable Amount Of Coverage for You?
Economic life value (ELV) calculation, which takes into account earnings, employer benefits, and personal services to your family.
Needs-based calculation, which typically takes into account one of those areas but would be less than the ELV coverage amount.
In addition, we will go over which type or combination of policies is appropriate for you taking into account your current and future situation.
What Financial Tools Are Available That Can Best Help My Family?
There are two main types of life insurance categories available: term life insurance and permanent life insurance.
Term life insurance is an easily affordable coverage set for a specific time frame, which is typically 10 to 30 years. Permanent life insurance, by contrast, offers lifetime coverage with the potential to build equity (otherwise known as cash value) and options for more flexibility. Many people choose to supplement their permanent insurance with term insurance.
Benefits of Term Life Insurance
Get the most amount of coverage at affordable prices
Cover specific items like house payments or educational expenses
Supplement permanent life insurance as needed
Permanent life insurance is lifetime coverage with the potential to build equity and has more options for flexibility.
To find out which is suitable for you, click the button below to learn more about general concepts from a professional, that will help make that decision for today and for your future.
Types of Permanent Life Insurance
Whole life insurance, which has fixed premiums, guaranteed death benefit, and cash value growth.
Universal life insurance, which has the flexibility to change payments, premiums, and death benefit options.
Variable* universal life insurance, which has the flexibility to change payments, premiums, and death benefits, as well as the option to take investment risks in return for a possible higher cash value.
Survivorship life insurance, which provides a benefit to the beneficiary after one person passes away.
Many people take out insurance policies for their homes and cars, but oftentimes, they will forget about their most important asset – the ability to work and earn a living. If you become ill or are injured and cannot work, disability insurance can help replace a portion of your income to help cover your financial needs. There are substantial concerns that could arise when you no longer earn a paycheck, such as the ability to make ends meet, having to use your savings to cover life’s necessities and risk your family’s financial future to afford what you need. Unfortunately, disability and loss of income may be more common than you think.
Risk of a Disability
You also have to think long-term. How much do you earn in a year and what would that be over a lifetime?
A 25-year-old worker who makes $50,000 a year and suffers a permanent disability could lose $3.8 million in future earnings.
For all these reasons, almost anyone who works – regardless of their marital or familial status – should consider disability insurance..
Over 37 million Americans are classified as "disabled" - about 12 % of the total population.
More than 50% of disabled Americans are in their working years, ages 18-64*.
The average long-term disability claim is 34.6 months*.
Sources:
*Disability Can Happen
How Disability Insurance Works
Disability insurance covers the loss of your income when you can’t work because of an accident or injury. Most insurance policies will pay out between 50 and 85% of the salary you received before the incident that caused your disability. We can help you select the coverage that will cover your basic living expenses while you’re unable to work. Your disability insurance will probably have a maximum allowable benefit, but the disability income may be tax free if you purchased the policy and paid the premiums yourself. There may also be a limit to the length of the benefits and a waiting period before you can claim disability benefits. We’ll go over the details of your policy with you to ensure you have the coverage you need.
Short-term vs. Long-term Disability
Short-term disability insurance usually offers 40 to 70% of your salary in benefits for a few weeks up to a year. Short-term disability insurance will make up for lost wages while you’re unable to perform your current job duties as a result of an illness or injury, such as a broken leg. Long-term disability insurance provides you with an income if you’re unable to work in any job for a long period of time. This means you may not qualify if you can switch careers and work for a different company. But if you’re unable to work, long-term disability insurance can provide coverage until you’ve either recovered enough to work or have reached retirement age.
Office: 661.368.5296
Fax: 661.554.6551
28338 Constellation Road
Suite 900
Valencia, CA
91355
CA Insurance #0E77552, AZ, NV, ID, FL
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
*This website is not associated with a broker/dealer and therefore does not advertise, promote, manage, or sell registered investment products that would be done through a broker/dealer or RIA. Any material on this website that references registered investment products is for information only. This website is for educational purpose and is not intended to provide any specific recommendation to anyone specifically.
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