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Key Facts...

In 2005 $2 trillion was spent on health care services in the United States. On average, each person was responsible for a total annual health care bill of $6,700. Is your health insurance plan working for you and your family?

Source: National Coalition on Health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National Health Spending in 2005." Health Affairs 26:1 (2006).

Health care costs in the United States rose an unprecedented 6.9% in 2005, more than double the rate of inflation. These costs are expected to rise at similar levels for the next decade. Protect your health and your wallet by investing in a health insurance plan that is right for you.

Source: National Coalition on Health Care. Catlin, A, C. Cowan, S. Heffler, et al, "National Health Spending in 2005." Health Affairs 26:1 (2006).

Long term care can be expensive. According to the newly released survey by Genworth Financial Services for 2008 the average annual rate for a private nursing home room in San Jose , California is $89,973 – up 17% since 2004. The demand and cost for in-home care are also on the rise. And, we face an impending caregiver shortage that could drive costs even higher in the near future.

Most Americans are unprepared. Learn about expected costs and make sure long term care is part of your overall retirement plan.

The Best value In Town

Actually this in the best value anywhere! It is known as term life insurance. Since 1996 rates have decreased on this foundational life insurance product. Often misunderstood, term life insurance give you the ability to “purchase” life insurance for a defined length of time (term) when you really need the coverage to protect your business, partners, lenders, spouse or children.

Term life insurance is used to “bridge” financial exposures during your lifetime. As you get older, your need for life insurance protection will probably lessen. Term life insurance is a great value to use to meet higher exposures we all face in our years before retirement. Will your family be able to maintain its present life style if you die? Could your family afford your mortgage without your income? How big a part will Social Security plan in your future?

Many people believe that Social Security will provide for the needs of their surviving family. Although Social Security covers a lot of people for many circumstances, it was never intended to cover them completely. Funeral and other final expenses usually run as high as $20,000 and Social Security Benefits won’t be able to cover these costs. This is especially true since the current funeral benefit from Social Security is only $255!

Everyone should have permanent life insurance, which will follow them into old age for final expenses and estate preservation. The amount varies by individual needs and estate size. One of my clients found that permanent life insurance is VERY EXPENSIVE and a hassle once you are at retirement age. Permanent coverage should be purchased at least 10-20 years before you are near retirement age, unless you want to experience unrealistic premium costs associated with permanent coverage.

So what do you do? The most cost effective approach is to secure a cost effective permanent life policy with lower limits to assist with final expenses and estate preservation AND purchase a much larger amount of term life policy to protect your loved ones during the time your family is most exposed to financial risk. I recommend a 20 or 30 year level term life polity that will terminate about 10 years after retirement age.

Term life insurance is a very useful product in protecting the here and now for your business and loved ones. Permanent life insurance is for you, your spouse and estate preservation later in life.

If you wish a quote or any additional information, we would be happy to provide you with a financial analysis to determine you needs.

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